The reports this week that NSW is about to privatize electricity retailing coincide with a move by many states in the US to return to regulation from an experiment with competition.

The Australian Financial Review on Tuesday said a report by Professor Tony Owen to the State Labor Government recommended the billion-dollar sale of the retail power giants Integral Energy, EnergyAustralia and Country Energy. Professor Owen was also expected to recommend the sale or long term lease of the State owned electricity generating companies Macquarie Generation and Delta Electricity.

The New York Times on Tuesday reported that more than a decade after the drive began to convert electricity from a regulated industry into a competitive one, many states are rolling back their initiatives or returning money to individuals and businesses.

“The main reason behind the effort to return to a more regulated market is price” the paper said.

“Recent Energy Department data shows that the cost of power in states that embraced competition has risen faster than in states that had retained traditional rate regulation.”

Of the 25 states, and the District of Columbia, that had adopted competition, only one, California, is even talking about expanding market pricing. In Ohio, politicians, utilities, their customers and consumer groups are negotiating how to end competitive electricity pricing, while Virginia has repealed its law.

This American experience is sure to be used by the trade unions which are opposing the sales in NSW.