Hon. Tom Stephens questions the Energy Minister regarding Western Power's decision to pursue gas power over tidal power, despite a report suggesting tidal power is cheaper long-term, and whether the procurement process was fair and non-discriminatory. The Minister denies any wrongdoing.

AnsweredQoN 773Legislative Council
Asked
6 September 2000
Portfolio
Energy

QuestionView source ↗

(1) Has the corporation considered the Ministerial Advisory Committee report which established that, in the long term, tidal power was a cheaper option than gas power? (2) Has the corporation taken legal advice as to whether, in view of the Ministerial Advisory Committee report, any decision to use gas represents a breach of the corporation s requirements to make a profit and minimise the total delivered cost of electricity? (3) Does the Minister for Energy share the view that Western Power's - (a) refusal to consider the tidal option's 'best deal'; and (b) failure to disclose the gas-fired proponent's tariff, when combined with the Government subsidies for the gas option, means that this proposal fails the requirement that the procurement process be non-discriminatory and open? (4) If not, why not? Answered on 9 November 2000 The Minister

AnswerView source ↗

Answered
9 November 2000
Response time
64 days
(1) No. (2) No. (3) No. Western Power has participated in the regional power procurement process conducted by the independently chaired Regional Power Procurement Steering Committee (RPPSC) and the Board of Western Power has given consideration to the recommendation of that Committee. The Board of Western Power has therefore relied upon the RPPSC to conduct a tender process and that process has considered the tidal project alongside other tenders and continues to respect the confidentiality of commercial aspects of all bids. The Board has therefore complied with s 31 of the Electricity Corporation Act which requires that it act in accordance with prudent commercial principles. Schedule 7 of that Act is not relevant as it addresses specifically procurement of any substantial new generation having a capacity of at least 3% of total installed capacity connected to the South West Interconnected System, and at this time that capacity threshold is around 120MW and significantly above the level being sought in the West Kimberley.
(2) Has the corporation taken legal advice as to whether, in view of the Ministerial Advisory Committee report, any decision to use gas represents a breach of the corporation s requirements to make a profit and minimise the total delivered cost of electricity? (3) Does the Minister for Energy share the view that Western Power's - (a) refusal to consider the tidal option's 'best deal'; and (b) failure to disclose the gas-fired proponent's tariff, when combined with the Government subsidies for the gas option, means that this proposal fails the requirement that the procurement process be non-discriminatory and open? (4) If not, why not? Answered on 9 November 2000 The Minister Replied: (1) No. (2) No. (3) No. Western Power has participated in the regional power procurement process conducted by the independently chaired Regional Power Procurement Steering Committee (RPPSC) and the Board of Western Power has given consideration to the recommendation of that Committee. The Board of Western Power has therefore relied upon the RPPSC to conduct a tender process and that process has considered the tidal project alongside other tenders and continues to respect the confidentiality of commercial aspects of all bids. The Board has therefore complied with s 31 of the Electricity Corporation Act which requires that it act in accordance with prudent commercial principles. Schedule 7 of that Act is not relevant as it addresses specifically procurement of any substantial new generation having a capacity of at least 3% of total installed capacity connected to the South West Interconnected System, and at this time that capacity threshold is around 120MW and significantly above the level being sought in the West Kimberley.
(3) Does the Minister for Energy share the view that Western Power's - (a) refusal to consider the tidal option's 'best deal'; and (b) failure to disclose the gas-fired proponent's tariff, when combined with the Government subsidies for the gas option, means that this proposal fails the requirement that the procurement process be non-discriminatory and open? (4) If not, why not? Answered on 9 November 2000 The Minister Replied: (1) No. (2) No. (3) No. Western Power has participated in the regional power procurement process conducted by the independently chaired Regional Power Procurement Steering Committee (RPPSC) and the Board of Western Power has given consideration to the recommendation of that Committee. The Board of Western Power has therefore relied upon the RPPSC to conduct a tender process and that process has considered the tidal project alongside other tenders and continues to respect the confidentiality of commercial aspects of all bids. The Board has therefore complied with s 31 of the Electricity Corporation Act which requires that it act in accordance with prudent commercial principles. Schedule 7 of that Act is not relevant as it addresses specifically procurement of any substantial new generation having a capacity of at least 3% of total installed capacity connected to the South West Interconnected System, and at this time that capacity threshold is around 120MW and significantly above the level being sought in the West Kimberley.
(b) failure to disclose the gas-fired proponent's tariff, when combined with the Government subsidies for the gas option, means that this proposal fails the requirement that the procurement process be non-discriminatory and open?
when combined with the Government subsidies for the gas option, means that this proposal fails the requirement that the procurement process be non-discriminatory and open?
Answered on 9 November 2000 The Minister Replied: (1) No. (2) No. (3) No. Western Power has participated in the regional power procurement process conducted by the independently chaired Regional Power Procurement Steering Committee (RPPSC) and the Board of Western Power has given consideration to the recommendation of that Committee. The Board of Western Power has therefore relied upon the RPPSC to conduct a tender process and that process has considered the tidal project alongside other tenders and continues to respect the confidentiality of commercial aspects of all bids. The Board has therefore complied with s 31 of the Electricity Corporation Act which requires that it act in accordance with prudent commercial principles. Schedule 7 of that Act is not relevant as it addresses specifically procurement of any substantial new generation having a capacity of at least 3% of total installed capacity connected to the South West Interconnected System, and at this time that capacity threshold is around 120MW and significantly above the level being sought in the West Kimberley.

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