Sometimes our politicians are taken for granted.

Sydney Morning Herald - 16th May 2009 - IAN VERRENDER

Sometimes our politicians are taken for granted.

They put in enormous hours, are away from their families for a good part of the year and, if they spend a few bucks here or there, all hell breaks loose among the reptiles of the press.

Take Joe Tripodi, just as an example. Our very own home-grown finance minister, Joe has busted a gut, eating his way across four continents while scouring the world for potential buyers for our three state-owned electricity retailers.

For 26 days, he and his entourage were forced to endure countless business-class airline trips across Asia, Europe, North America and the Middle East, visiting "potential" buyers in 11 countries.

Everyone told him it couldn't be done, that there were only two obvious bidders for the electricity retailers, and that both were in Australia. In Sydney, in fact - just around the corner from Parliament.

But Joe forged on with that never-say-die attitude that has become his hallmark. No stone was left unturned. No first class hotel dining room was left with stocks intact. He and his advisers racked up 30 meetings with "interested parties" in those 26 days and a couple of them even said they may be interested in "participating in our reforms". And the cost? The whole thing was a mere snip for taxpayers at $290,000.

A master tactician, our intrepid Finance Minister wisely has decided to create a bit of pricing tension on the local front. Even though Origin Energy and AGL are the only logical bidders for the retailers, Joe has kept them in the dark. There have been no serious presentations to them on the sale process. Then again, they're both so keen he probably doesn't need to.

After more than a decade of debate and bitchy infighting, the Government once again has unveiled plans to sell electricity assets. The only difference this time is that it looks to be on, although the idea of completing a sale by the end of this year looks a little optimistic.

While the electricity generators will remain in Government hands, the three retailers, EnergyAustralia, Integral Energy and Country Energy, will be put on the auction block.

Some analysts reckon they could be worth up to $6 billion. But it's more likely they will fetch closer to $3 billion. Included in the sale will be the right to buy the total output from some of the state-owned coal-fired power stations and sites - with development approvals - for new power stations.

In the mid-1990s a national electricity market was formed and the idea was that all state governments would sell their generating and distribution assets. Victoria, under Jeff Kennett, was first out of the gate, selling all its power industry to mostly North American operators for close to $14 billion.

They all paid over the odds, just to get a foothold, in the mistaken belief they could snaffle the NSW and Queensland industries soon after. When it was clear that wasn't going to happen, most sold out at huge losses a few years later.

Given that experience, even in ordinary times it is unlikely foreign bidders would even be slightly interested apart from the Chinese-owned Tru Energy, which has a power station just south of Wollongong at Tallawarra.

But Origin and AGL are so far clear of the pack in terms of buying power, it's not funny. For a start, they both have the home-town advantage, with huge operations across the country.

Add a global credit crisis, the worst recession since the 1930s and the minor fact that most international corporations are desperately selling assets, there's unlikely to be much in the way of foreign competition.

Remember, too, that a year or so ago the likes of Babcock & Brown, Macquarie and a host of other "financial engineers" would have been salivating at the prospect of paying over the odds for these kinds of assets. Not any more.

The three retailers' customers are split along geographic lines, with EnergyAustralia and Integral taking the Hunter Valley, Sydney and Wollongong and as far west as Lithgow, while Country Energy has the rest of the state.

Spun out of Boral a decade ago, Origin Energy is the strongest potential bidder, with huge cash reserves after striking a lucrative deal to develop its Queensland coal seam gas interests last year with a US group.

It is considered the company most likely to win Energy Australia - the retailer with the best customers - with AGL in the box seat to tip out Tru Energy for Integral and Country.

With any auction, you really need only two buyers. NSW has three. All are keen to snap up the retail assets for the simple fact that adding a million or so customers to your base really boosts your ability to spread costs and underwrite expansion.

Depending on just how aggressive carbon pricing is made in Australia, it is unlikely there will be any more coal-fired power stations built in this state. In the longer term, gas will replace coal for electricity generation, and both Origin and AGL have access to huge gas reserves. Both also have experience with wind power.

There's another reason both would be keen bidders. While their market shares in this state are fairly stable, the three Government-owned retailers have been aggressively undercutting prices in other states, resulting in a huge amount of customer turnover and creating headaches for AGL and Origin.

Tru Energy, meanwhile, is desperate to increase its foothold in NSW and buying one of the retailers is the easiest way to do that. And with Chinese capital backing it, there's certainly no shortage of cash.

Joe Tripodi visited China on his trip - and Singapore, Malaysia, Japan, Korea, Hong Kong, the United Arab Emirates, France, Britain, the US and Canada.

Who knows, next time he may trek down to George Street or even all the way over the harbour to Miller Street.

Are there any good restaurants in North Sydney?