If Denis Napthine had an extra $20 billion to spend he might have fared a little better over the weekend in the Victorian election. That's the size of the war-chest mooted by the NSW Liberal government as they head to the polls early next year, pledging to privatise the state's electricity networks.

Former premier Jeff Kennett did just that with Victoria's poles and wires two decades ago, fetching a handsome price and restoring the state's finances. Since then however, things have changed radically. Electricity prices have doubled in five years yet demand for electricity is actually in decline.

Privatising electricity networks could fetch a handsome price.

The rationale for selling state networks is twofold. Firstly, it delivers a wad of cash to fund public works. Secondly, privatisation is supposed to bring down prices for consumers by creating efficiencies.

It is clear however that privatisation has not delivered efficiency and decent prices for consumers. The Victorian experience shows customers have been stung just as hard as those in other states while a good chunk of the profits have gone to multinational parent companies in Hong Kong and Singapore.