In a wide-ranging report into public infrastructure, it said the public interest can best be protected through government regulation along with sale conditions and also via community service obligations, rather than by continued government ownership.

Along with state governments selling electricity networks and desalination plants, the commission said some or all of the business and activities of groups such as Australian Rail Track Corporation and Airservices Australia could be sold, while the state and federal governments should put the sale of Snowy Hydro back on the agenda.

‘‘Sale of shares by any one of these governments should not depend on the decisions made by the other governments,’’ the commission said on Monday, referring to the fact that Snowy Hydro is owned by the NSW, Victorian and federal governments.

In the context of establishing road funds, the Productivity Commission also called for the start of pilot studies into the use of vehicle telematics. Already being used by motor vehicle insurers in parts of Europe and North America, this technology ‘‘could be used for distance and location charging of cars and other light vehicles,’’ the report noted.

‘‘The pilot studies should be designed to inform future consideration of a shift to direct road user charging for cars and other light vehicles, with the revenue hypothecated to roads. Heavy-vehicle trials could also be developed on a similar basis.’'

Brendan Lyon, the chief executive of Infrastructure Partnerships Australia said the report "effectively dismisses unfounded claims about higher electricity prices from groups opposed to reform''.

"This adds further weight to get the NSW poles and wires reformed and leased, unlocking $20 billion for new infrastructure," he said.