This paper is an analysis of the fiscal effects of the privatisation of the Victorian electricity industry. Privatisation is found to be approximately neutral in its effect on the net worth of the Victorian public sector. The buyers of electricity assets lost money, apparently because they anticipated more favourable regulatory treatment than they actually received. Electricity prices were increase prior to privatisation, and are still higher than those in states where the electricity industry has remained in public ownership, but consumers were not directly affected by privatisation as such. There were reductions in employment both before and after privatisation.
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