Keeping power networks 'risky', says Baird

NSW Premier Mike Baird says he is confident his privatisation plans for the state's electricity networks will raise vital billions despite describing them as risky assets.

MR Baird said he is "very confident" his plan for a 99-year-lease of half the state's "poles and wires" will raise enough money to drive a $20 billion infrastructure program.

The premier has previously said privatisation will raise $13 billion, with a further $7 billion from interest and federal government funds.On Tuesday he said future income from retaining public ownership of the electricity network was unreliable."These assets are risky, there's no doubt about it," he said."You can't rely on the income in the long-term ... which is why it makes all the more sense for us to lease out 49 per cent."We rent it out, we grab those proceeds and we build the rail, the roads, the hospitals and the schools that we desperately need."NSW Treasurer Andrew Constance attacked Labor leader Luke Foley on Tuesday, saying the Opposition is misleading the public by claiming the state's electricity network pays back $1.7 billion to taxpayers each year.A half-yearly review of the NSW budget, released in December, shows that future returns from the electricity network would drop from $1.17 billion this financial year to $407 million in 2017/18.Mr Foley said during his election campaign launch on Sunday that the networks return $1.7 billion to the state's coffers each year.While the networks did return $1.7 billion 2012/13 and 2013/14 - at a time when network operators were spending heavily on upgrades criticised as "gold plating" - regulatory changes mean future returns are expected to be lower."Luke Foley is claiming $1.7 billion every year in relation to returns to government from electricity consumers in this state," Mr Constance said."The budget papers are clear."They show that the $1.7 billion is not there."The dividends and tax returns from owning the state's electricity poles and wires have become a contested topic ahead of the March 28 NSW election.Mr Baird has declared there is "no Plan B" if 49 per cent of the network is not privatised to raise new funds for transport, education and hospitals.On Tuesday Mr Constance did not repeat the estimate that the network would raise $13 billion, saying the final price for any sale would be determined in April by a decision on power prices from the industry regulator."The long line of interest in these businesses is very significant and I would be confident that we will not only receive retention value we will exceed it," he said.Mr Constance also said "private sector discipline" would lower costs at electricity companies following a sale, benefiting consumers.Labor has attacked the electricity networks proposal as handing valuable public assets over to private operators.

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