A parliamentary question regarding EnerNOC's claims about demand side management (DSM) payment arrangements in WA's electricity market. The Minister strongly refutes EnerNOC's claims, accusing them of misleading the public to protect their profits.

AnsweredQoN 93Legislative Assembly
Asked
25 February 2016
Portfolio
Energy

QuestionView source ↗

ELECTRICITY MARKET REVIEW — ENERNOC CLAIMS
93. Mr J. NORBERGER to the Minister for
Energy:
I read some interesting claims over
the weekend by a representative of United States' multinational EnerNOC
about the review into the current payment arrangement for demand side
management in the Western Australian electricity market. Can the minister
please advise the house on this matter?

AnswerView source ↗

I thank the member for Joondalup for
the question. I know that people in little cars from EnerNOC have been out
visiting the member's electorate. We had a discussion in this house
last week, I think, on demand side management. First, demand side management
itself has some real utility. Unfortunately, Mr Wilson, who represents EnerNOC
out there, might be well presented and have these flashy cars and whatnot, but
it is all rubbish. Every major claim he makes is a lie. I want to go through
the major claims.
Several members interjected.
The
SPEAKER : Member for Bassendean! I do not even want to hear a comment. I just
want to say just be very measured in your comments in here. That is all I want
to say to you.
Dr
M.D. NAHAN : They made the claims; I heard them. They have said that demand
side management will save $105 million. It will save some money if it is called
on, but, right now, and over the last few years, and over the future, it is not
going to be called on. How do we save money if we are paying $66 million for
this service and it is not used? How do we save money if it is not called on?
Mr Wilson says it saves carbon pollution. How do we save carbon emissions if it
is not called on—and it will not be called on into the foreseeable
future? How does it do it? It does not. He says that the system's
regulator supports this fact. It does not. Read the Australian Energy Market
Operator's website. It says that DSM has a role—I agree—but
its pricing should relate to its saving of energy, and not be paid in advance.
So, I am afraid that what Mr Wilson is doing is going out there and
misrepresenting issues. The reason why he is doing that is clear. He represents
EnerNOC, which is the largest aggregator of DSM in the state. It is getting in
the vicinity of $37 million, much of which it keeps, and it is trying to defend
the huge flow of the profits to its pockets. It is doing this by systematically
using those proceeds to mislead and distort the views to the public of Western Australia.
I will quote one of Mr Wilson's comments —
Voters' aren't
volatile. They want things to remain the same. That's why they respond
to scare campaigns �
That is what he is doing. Well, we will not. We know that DSM
has a role. We have to price it properly, but we will not respond to scare
campaigns like this. We will continue to make reforms and reduce the costs of
electricity to consumers, and reduce the subsidy, and get rid of useless
material like that. I know people on the opposite side are sitting here in
glee, but standing up to groups like EnerNOC is leadership—and that is
what we are doing.

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