The NSW government says its plan to sell off part of the state's electricity sector is far from dead, with cabinet today considering a compromise.
Premier Morris Iemma said the alternative plan would not require the support of the opposition, nor would it require legislation to be passed by the parliament.
It would lead to the sale of electricity retailers and potential sites for generator developments, with the government retaining the existing power generators.
Cabinet was meeting at 4.30pm (AEST) today to consider the amended plan.
The government's move came after the opposition today vowed to withhold crucial support for the sale plan, and despite the fact that Mr Iemma said yesterday that there was no "plan B".
"It will be an alternative package that has at its heart securing NSW's electricity supplies," Mr Iemma told reporters today.
"It's a package that doesn't require the support of the opposition and a package that doesn't require the legislation."
Despite saying yesterday there was no "plan B", Mr Iemma said the government had been working on the alternative package if the opposition opposed the previous plan.
"This process is not over," Treasurer Michael Costa said.
Under the previous sell-off proposal, the state government intended to sell off the electricity retailers and lease out its power generators in long-term arrangements.
However, that plan was killed off when Opposition Leader Barry O'Farrell today declared the coalition would not vote for the enabling legislation.
Mr Iemma needed the support of the opposition in order to pass the legislation after a number of his own MPs declared they would cross the floor to defeat the sale.
The premier said he would announce later today the cabinet's decision on the alternative package.
