The proposed 99-year lease of electricity distributor Transgrid to the private sector will result in cheaper power bills for consumers, NSW's treasurer says.
The state government on Thursday confirmed a proposal for the long-term lease of 49 per cent of the NSW electricity network in response to a scoping study into the plan.
The government says leasing its power network businesses will unlock $20 billion to fund state infrastructure projects.
Under the proposed plan, 100 per cent of Transgrid would be leased to the private sector, while Ausgrid and Endeavour would both be 50.4 per cent privately leased.
Country distributor Essential energy would remain 100 per cent government owned.
Treasurer Andrew Constance said consumers would win from the proposed plan for Transgrid.
"Ultimately we are going to see network prices attached to people's bills come down," he said.
"We are going to see lower prices as a result. I think it's important that we acknowledge that."
He said Transgrid, which owns, operates and manages one of the largest power transmission networks in Australia, would be the first distributor to be leased if the government gained a mandate for the plan after the next state election in March 2015.
He didn't put a timeframe on the Transgrid lease, but said it would happen "as soon as possible" if the state government was returned.
He expected there to be "enormous interest" for the assets, particularly from superannuation funds.
"I think it's a fantastic opportunity for investors," Mr Constance added.
He also said it was important to give an "assurance to the community that we have retained interest in these businesses".
"We are being upfront and we are seeking a mandate to do this," he said.
Earlier, Mr Constance told the Committee for Economic Development of Australia the leases would result in "lasting benefits" to NSW residents through downward pressure on power prices and extra infrastructure investment.
He said the transaction would have "no adverse impacting electricity reliability".
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