It is understood that the sole remaining participant, the private equity firm Blackstone, suddenly withdrew when bidding closed yesterday.

While neither the Treasurer, Eric Roozendaal, nor the government would comment, they will try to blame the collapse on the negative publicity generated by the recent upper house inquiry into the first part of the sale.

The inquiry was sparked by the resignation of eight power company directors in protest over the sale, which they believed did not represent value for money for taxpayers.

Evidence given at the inquiry by the government sales team revealed taxpayers could reap less than $1 billion from the $5.3 billion paid for the assets, which included three electricity retailers and the trading rights attached to two power generation companies. The government has been seeking offers for the electricity trading rights to the state-owned Macquarie Generation and the central coast power stations owned by Delta Electricity.

They were expected to reap another $2 billion for the government. But there have been indications the process was under pressure.

The shadow treasurer, Mike Baird, had called for companies not to bid for the rest of the assets because it was ''not in the

interests of NSW''. Mr Roozendaal has said the price the government achieved was well above the retention value, or reserve price, but has argued that to reveal the price would jeopardise the sale of the remaining assets.

Last week Ms Keneally was forced to reject claims the government had abandoned the sale to avoid more political pain.

Ms Keneally is expected to announce a $1.5 billion concession in household energy bills today - stripping the money from the Climate Change Fund, which will have no funds for new projects until 2020. The scheme would see money in the fund used to pay for the solar bonuses scheme, which was previously to be met by consumers, News Ltd reported.

The Premier could not be reached last night. A spokesman for the Energy Minister, Paul Lynch, said his office knew nothing about the announcement.

Yesterday the Opposition Leader, Barry O'Farrell, came under more pressure yesterday over his privatisation agenda.

Only days after refusing to discuss the Coalition's policy on electricity privatisation at the upper house inquiry, Mr O'Farrell appeared to let slip key details to a country newspaper.

Questioned about his privatisation plans, Mr O'Farrell said: ''I'm not going to use this inquiry to release the energy policies.'' …

But four days later in Lithgow, Mr O'Farrell said the Coalition did not plan to sell power generators. ''We have absolutely no plans to privatise either the generators or the poles and wires,'' he told the Lithgow Mercury.

Asked about the report, he did not deny the comments. ''We have ruled out the sale of poles and wires because that is where the jobs are and we are determined to protect jobs,'' he said.

''We have also said that we will hold a special commission of inquiry into the sale of electricity assets.''