Some factors that the Victorian Government can consider in terms of attractiveness of privatization are to find ways to store or disburse the 10 percent electricity that at present is getting wasted. It could have an impact on the overall tariff calculations and could result in cost savings for consumers. This will drive sales price of project.
A nominal interest rate does not adjust for inflation. Now if the average risk of project is higher than what is anticipated, then the overall pricing to consumer could increase.
When average electricity tariffs are 5 per cent lower, then it would mean that privatization in order to meet public debts could suffer. When they are higher, the profits made are higher.
Other disruptions in the form of employee action and workplace accidents etc. could have an adverse impact on base efficiency. This could have an impact on tariff. This will also have an impact on the average base life of each working unit in Loy Yong.