Origin Energy Ltd’s
(ASX:ORG) $3.25 billion purchase of the New South Wales government’s electricity assets could be headed for a judicial inquiry.
Over the weekend the NSW Coalition claimed a landslide win at the state election.
The new NSW premier Barry O'Farrell has stated he will launch an investigation into the Labor government’s electricity privatisation to determine the legality of the sale to Origin and TRUenergy.
Mr O'Farrell says the Labor government did not have a mandate to finalise the deal, and, Mr O'Farrell has not ruled out overruling the transaction.
A TRUenergy spokesperson has rejected this possibility, claiming that the company has legally binding agreements and the businesses that have been purchased are now being integrated.
Origin has not as yet officially commented, but, only a fortnight ago launched a $2.3 billion capital raising to partially fund the purchase of the assets.
In the six months to 31 December 2010 Origin Energy booked a net loss of $100 million.
