NORTHERN Territory Treasurer Robyn Lambley has released documents to back her decision to sack the chair of Power and Water Corporation.
On Tuesday Ms Lambley flagged higher power and water costs for Territorians, saying tariffs had been well below the national average.
The government-owned Power and Water Corporation had lost millions of dollars and was a major drain on public finances, the government said.
On Tuesday Ms Lambley sacked the corporation's chair, Judith King.
She said she had learned of serious financial problems with Power and Water and of correspondence between Ms King and the then treasurer Delia Lawrie, who is now now the NT opposition leader.
She said Ms King had been unable to effectively communicate with the government how serious the situation was.
On Wednesday Ms Lambley released to the media letters between Ms King and Ms Lawrie.
In one letter dated April 28 last year Ms Lawrie hinted power prices would have to rise, saying tariffs for electricity, water and sewerage were to be reviewed on a basis for financial and commercial sustainability.
One day later Ms King wrote and said electricity, water and sewerage projections showed a revenue shortfall of $60 million to $80 million each year.
On April 30 this year Ms King again wrote to Ms Lawrie and said the financial sustainability of the corporation remained "a significant challenge" without revenue increases, cost reductions or deferral of capital investments.
In parliament on Wednesday Ms Lawrie said that while in government the Labor Party had chosen not to pass on the full power and water price rises recommended in a report because it wanted to keep the costs of living low.
"You (Ms Lambley) have shown you care more about turning Power and Water into a profit-making enterprise rather than the essential services deliverer that it is," she said.
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