Following the Deecmber move by the New South Wales state government to sell its 58% stake in Snowy Hydro Ltd, the Federal government has announced that it is to sell its own 13% stake in the company.
“The Australian government views the sale of its minority 13 percent share as being in the interests of Australian taxpayers, and consistent with our strong support for the privatisation of government-owned electricity generators and increased competition in the electricity market, particularly in NSW,” Finance Minister Nick Minchin said in a statement.
The remaining stake in Snowy Hydro, which provides 74 percent of the renewable energy available in Australia’s mainland national electricity market, is owned by the Victorian state government. It is yet to decide whether it will sell its stake.
The moves come ahead of an initial public offering (IPO) that is expected by June.
Among its assets Snowy Hydro owns and operates the 3,756 MW Snowy Mountains Scheme which consists of seven power stations and 16 dams, connected by more than 200 km of tunnels and aqueducts.