Hon Robin Scott questions Synergy's advertising spend and rationale, given its perceived monopoly. The Minister defends the advertising as necessary for customer service and competition in contestable markets.

AnsweredQoN 674Legislative Council
Asked
13 March 2018
Portfolio
Energy

QuestionView source ↗

(1) The Minister certainly being aware of the report on page 5 of The West Australian of Monday, 12 March 2018, to the effect that Synergy's monopoly will continue, will the Minister provide details of the current radio advertising campaign on behalf of Synergy, including texts of radio commercials, the duration and cost of each commercial, the radio stations involved and the total spend per radio station? (2) If no to (2), why not? (3) What is the total amount budgeted for advertising in all media by Synergy for the financial year 2017-18? (4) Why is it necessary for Synergy, as a monopoly, to advertise?

AnswerView source ↗

Answered
10 April 2018
Responded by
Minister for Environment representing the Minister for Energy
Response time
9 days
(1) Synergy’s current radio presence is related to its Customer Service Program (CSP) aimed at supporting communities and individuals to understand and manage their energy.
Radio spots are typically 30 seconds in length running on four metro stations (6PR, 96FM, Nova and Southern Cross Austereo) and 15 regional stations within the South West Interconnected System. Planned expenditure to the end of the financial year is $279,791.
Radio scripts active as at 13 March 2018 are as follows: [see tabled paper no.   ].
(2) Not applicable.
(3) The printing and advertising budget for 2017-18 is $6.8 million. This includes production of material that Synergy is legislatively required to distribute to its customers regarding various aspects of the business including State Government tariff changes.
(4) Synergy’s advertising aims to addresses customer problems. The CSP is a means to communicate with customers and highlight relevant services and products that broaden customer access to energy solutions and help manage energy costs.
Synergy operates in the contestable electricity and gas markets and therefore it is required to promote itself in order to remain competitive.

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