O'Farrell's power failure AS if the people of NSW had not suffered enough through a decade of incompetence and mismanagement at the hands of Labor, when the conservative seat warmers finally get the chance to do something positive for the state after 13 years of irrelevance, they comprehensively fail the test.

The Coalition is responsible for putting up the shutters with the clear message: NSW is closed for business.

meet the growing electricity demand, he said.

"The cost to the taxpayer is an increase in electricity prices because we'll be introducing peakers [peak-demand power stations], by and large, into the system instead of baseload," Mr Costa said.

But the revised proposal was "a package we have to go forward with to restore our economic credibility," he said.

The Government will also review its capital works program in a mini-budget, with projects like the M4 East extension and north-west metro now under threat.

Mr Iemma and Mr Costa revealed the new power option after the state opposition declared it would vote down the original proposal.

The Government needed the Coalition's support after several Labor MPs threatened to cross the floor to vote against the plan. Parliament was recalled a month early at a cost of $500,000 to vote on the enabling legislation, but the Government killed off the debate when it was clear it would be defeated.

Mr Iemma said Mr O'Farrell's stance equated to economic vandalism.

"He took five minutes of political opportunism and acted against the long-term interest of the people of NSW," he said. "The Government is going to act and act immediately to protect the people of NSW."