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NSW energy supply 'much healthier': govt

NSW is unlikely to use new emergency powers to ensure energy supply in the state amid improving conditions in the under-strain system, Treasurer Matt Kean says.

A lack of capacity, as well as power plant maintenance, have stretched NSW energy supplies this week, with Mr Kean urging residents on Wednesday to reduce usage, stoking fears of power shortages.

The Australian Energy Market Operator this week for the first time took control of directing supplies from energy generators to the east coast grid until further notice.

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