❓ The Minister for Energy provides an update on the North West Interconnected System (NWIS) reform, highlighting a problematic contract from the previous government that hinders implementation and renewable energy integration. The Minister seeks access to cabinet papers to understand the contract's rationale.
AnsweredQoN 364Legislative Assembly
QuestionView source ↗
NORTH WEST INTERCONNECTED SYSTEM
364. Mr K.J.J. MICHEL to the Minister for Energy:
Can the minister update the house
on the reform of the access arrangements in the north west interconnected
system, and can the minister advise the house whether any challenges have been
identified?
364. Mr K.J.J. MICHEL to the Minister for Energy:
Can the minister update the house
on the reform of the access arrangements in the north west interconnected
system, and can the minister advise the house whether any challenges have been
identified?
AnswerView source ↗
The north west interconnected
system reform started under the last government. Those reforms were, of course,
stopped by the last government because it had been one of the agendas of the
defeated Carpenter government. To his credit, the member for Riverton, as
energy minister, launched the NWIS reform program. It continued under the
Treasurer when he was Minister for Energy, and I continue to be supportive of
these reforms. The aim is to have them implemented by 1 January 2020. However,
we have discovered that there is a problem in implementing these reforms; that
is, a contract entered into by the former government poses a serious financial
burden to Horizon Power and the government of Western Australia.
This
uneconomic and unbalanced contract is extremely inflexible and is a very
long-term obligation on the state. We do not understand why this agreement was
entered into by the last government, particularly when it was not recommended
to it by the process it had established to choose a contract partner. We need
to understand why the last government agreed to this high-cost, inflexible,
long-term contract that makes it very difficult to implement the north west
interconnected system reforms and, indeed, prevents the integration of
increasing amounts of renewable energy into the north west interconnected
system. Today I have written to the Leader of the Opposition to ask for access
to cabinet papers, so that we can understand why this high-cost contract with
inflexible terms was entered into, because it was not the recommended outcome
of the contract selection process that had been run by the former government.
We expect a clear explanation from the opposition about why it would saddle
future governments, for over a quarter of a century, with an uneconomic,
financially irresponsible, inflexible, long-term contract with no capacity to
be renegotiated. We need to have a clear understanding of why this contract was
entered into, because it is a major impediment to the implementation of the
north west interconnected system reforms.
system reform started under the last government. Those reforms were, of course,
stopped by the last government because it had been one of the agendas of the
defeated Carpenter government. To his credit, the member for Riverton, as
energy minister, launched the NWIS reform program. It continued under the
Treasurer when he was Minister for Energy, and I continue to be supportive of
these reforms. The aim is to have them implemented by 1 January 2020. However,
we have discovered that there is a problem in implementing these reforms; that
is, a contract entered into by the former government poses a serious financial
burden to Horizon Power and the government of Western Australia.
This
uneconomic and unbalanced contract is extremely inflexible and is a very
long-term obligation on the state. We do not understand why this agreement was
entered into by the last government, particularly when it was not recommended
to it by the process it had established to choose a contract partner. We need
to understand why the last government agreed to this high-cost, inflexible,
long-term contract that makes it very difficult to implement the north west
interconnected system reforms and, indeed, prevents the integration of
increasing amounts of renewable energy into the north west interconnected
system. Today I have written to the Leader of the Opposition to ask for access
to cabinet papers, so that we can understand why this high-cost contract with
inflexible terms was entered into, because it was not the recommended outcome
of the contract selection process that had been run by the former government.
We expect a clear explanation from the opposition about why it would saddle
future governments, for over a quarter of a century, with an uneconomic,
financially irresponsible, inflexible, long-term contract with no capacity to
be renegotiated. We need to have a clear understanding of why this contract was
entered into, because it is a major impediment to the implementation of the
north west interconnected system reforms.
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