A document containing modelling conducted by the NSW Treasury just four weeks ago forecasts dividends from the network will fall to virtually zero in four years.
It also warns the network companies will eventually start losing money, forcing the government to subsidise them.
NSW Treasurer Andrew Constance conceded the lease sale price of the 49 per cent of the network companies could also be affected
But he said the modelling showed that if the government was prevented from reforming the sector, the taxpayer would end up having to not only pay for electricity but subsidise the companies that provided it.
“It also shows that you can’t be dependent on dividends to pay for all your promises to pay for more nurses and teachers,” Mr Constance said.