Business groups support NSW electricity privatisation

Business groups say private investment in the New South Wales electricity industry would not lead to price rises.

The State Government is considering its response to the Owen inquiry, which recommended privatising the sector to help the state meet its future energy needs.

But it is facing opposition, not only from unions and green groups, but from within its own ranks, with backbenchers Peter Primrose and Sonia Hornery speaking out against the move.

One of the concerns is that prices will rise, but Paul Ritchie from the New South Wales Business Chamber says that will not be the case.

"The fact is, electricity has been privatised in Victoria and they have strong safeguards in place in relation to electricity prices," he said.

"Those safeguards would apply in New South Wales."

Gary Bowditch from Infrastructure Partnerships Australia says concerns that jobs would be lost or prices would sky-rocket are misplaced.

"The private sector can provide the power to the New South Wales community both effectively and efficiently," he said.

"In fact, it could do so potentially at even more competitive prices should it be allowed to bring the full range of innovation forward."