From their perspective there is too much money chasing too few...

From their perspective there is too much money chasing too few infrastructure assets and they would be more than happy to get inolved in these schemes.

There's been some controversy about the privatisation of water but mainly in Africa where its more of a life and death situation. Here I think its inevitable as we come to view having a garden or living in certain locations as a bit of a luxury.

We may feel the same way about a reliable electricity supply too if things keep going as they are.

http://www.theaustralian.news.com.au/story/0,20867,21790529-2702,00.html

Stash of water to 'keep the lights on'

* Imre Salusinszky and Sid Marris
* May 25, 2007

THE danger that electricity supplies across the national grid could be threatened as early as next year has prompted NSW to quarantine water supplies to make sure its power stations can operate.

State and federal energy ministers meeting in Melbourne today will receive a disturbing report from the national electricity regulator, NEMMCO, modelling the impact on power generation of a continuation of little or no rain.

The Australian has learned the report identifies the "potential for a loss of generating capacity" as soon as the end of next year under a low-rainfall scenario.

The report has caused NSW Premier Morris Iemma to launch pre-emptive action by quarantining 40 gigalitres of water that had been earmarked for environmental flows in the Hunter Valley.

If the drought holds, the water will be diverted to power stations.

"We're acting now to create the strategic reserve to make sure we can keep the lights on in NSW," Mr Iemma said last night.

Power stations require large volumes of water as they use coal-fired furnaces to generate steam to drive turbines.

In NSW, power stations are already implementing a range of measures to reduce their draw onwater.

ACT electricity provider ACTEW has warned that there may be rolling blackouts next summer in Canberra if the drought limits the supply of water that is needed to create steam to run power plants.

The National Generators Forum has urged governments to encourage people to use less electricity in the coming year to take pressure off the system.

The Snowy Mountains Hydro Authority has only 8 per cent capacity in its reserves, which are dedicated to running the backup power for the national grid.

Federal Industry Minister Ian Macfarlane played down concerns of an electricity supply crisis.

He conceded that drought was putting pressure on prices but said there were other supply issues, such as commissioning new generators, that were affecting the market.

Mr Macfarlane said Energy Users Association executive director Roman Domanski had suggested that unusual maintenance by state governments, particularly in NSW, might be contributing to the rise in contract and spot electricity prices.

"Can I say that it was a very productive meeting (with Mr Domanski)," Mr Macfarlane said. "At no stage during that meeting did he suggest there was anything untoward going on in the electricity market."

Mr Macfarlane said any shortfall would be tempered by the Kogan Creek generator in Queensland coming on-stream.

"We've already lost in excess of Kogan Creek's generating capacity in Queensland, as a result of the shutdown of Swanbank and the partial shutdown of Toowong," he said.

"But it's my understanding that NEMMCO are not predicting any blackouts as a result of the drought in the next 12 months."

The Australian reported earlier this month that panic had developed over the Sydney Futures Exchange electricity futures contract as major consumers tried to protect themselves from soaring prices while generators sought to profit.

Weekly turnover has leapt fourfold as the price of electricity for delivery next year has jumped from $40 a megawatt hour to $70 in the past six weeks.