❓ A WA parliamentary question on notice addresses electricity supply to Synergy, tendering processes, and the Community Service Obligation (CSO) policy. The response clarifies Synergy's electricity sources, tender details, and the purpose of CSO payments.
AnsweredQoN 3326Legislative Assembly
QuestionView source ↗
(a) are any private energy providers currently supplying electricity to Synergy for resale into the incontestable market, which services domestic consumers;
(b) given that the vesting contracts arranged by the Government upon the break-up of Western Power in 2006 required 100% of the uncontested market to be purchased from Verve, but over time part of this market would be tendered out to the private sector, how many tenders have been awarded;
(c) what is the level of generation that has been tendered;
(d) what proportion of the uncontested market has now been tendered;
(e) when will these tenders be supplying electricity into the South West Grid for the uncontested market, and how much electricity will that be; and
(f) will the Government need to change its current Community Service Obligation (CSO) policy which, only allows the Government to make CSO payments to Government owned businesses or since Synergy is projected to continue making millions in profit under the current price regime, is the use of Synergy purely as the distribution point of the money the Government’s attempt to circumvent its own policy?
(b) given that the vesting contracts arranged by the Government upon the break-up of Western Power in 2006 required 100% of the uncontested market to be purchased from Verve, but over time part of this market would be tendered out to the private sector, how many tenders have been awarded;
(c) what is the level of generation that has been tendered;
(d) what proportion of the uncontested market has now been tendered;
(e) when will these tenders be supplying electricity into the South West Grid for the uncontested market, and how much electricity will that be; and
(f) will the Government need to change its current Community Service Obligation (CSO) policy which, only allows the Government to make CSO payments to Government owned businesses or since Synergy is projected to continue making millions in profit under the current price regime, is the use of Synergy purely as the distribution point of the money the Government’s attempt to circumvent its own policy?
AnswerView source ↗
Answered
10 June 2008
Responded by
Minister for Energy
Response time
35 days
The Office of Energy has provided the Minister for Energy with the following response.
(a) Synergy is currently sourcing wholesale electricity supply to meet the requirements of its contestable and non-contestable customers from Verve Energy's generation portfolio, from the Emu Downs wind farm (owned by Griffin Energy and Stanwell Corporation) and from landfill gas through Waste Gas Resources. Synergy will soon also source electricity supply for its contestable and non-contestable customers from NewGen's Kwinana Power Station, upon commissioning of this plant, which is scheduled for October 2008.
(b) Synergy has completed one tender, and is currently running a second.
(c) The tender that Synergy has completed was for up to 200 MW of electricity, and for up to 50 MW of renewable electricity. This supplements the 320 MW tender awarded to NewGen Power and two tenders for 81 MW renewable energy all completed prior to disaggregation.
(d) Synergy does not run tenders for power to supply the non-contestable segment of its portfolio. Instead it runs tenders for power to supply its customer portfolio, including non-contestable and contestable tariff customers, as well as contract customers. Synergy's total load varies according to market conditions. Currently, the proportion of Synergy's load that has been tendered is approximately 15 per cent, although it should be noted that some of the tendered load does not commence supply until 2009-10.
(e) Synergy has signed three electricity supply contracts as a result of the tender it has completed - one for 200 MW, one for 40 MW, and one for 1.5 MW. All three contracts are for electricity supply to commence from 1 October 2009. Synergy will use the electricity supply from these three contracts to help meet the requirements of both contestable and non-contestable customers.
(f) The Government will not need to change its Community Service Obligation policy. The Community Service Obligation only relates to tariffs for small business and residential customers, and Synergy is currently the only supplier of non-contestable customers. The Community Service Obligation payments will be made to Synergy to fund the difference between cost-reflective retail tariffs and the tariffs that Synergy will be allowed to charge to small business and residential customers, and is therefore a subsidy to residential and small business consumers who are not able to choose their electricity retailer.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
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(a) Synergy is currently sourcing wholesale electricity supply to meet the requirements of its contestable and non-contestable customers from Verve Energy's generation portfolio, from the Emu Downs wind farm (owned by Griffin Energy and Stanwell Corporation) and from landfill gas through Waste Gas Resources. Synergy will soon also source electricity supply for its contestable and non-contestable customers from NewGen's Kwinana Power Station, upon commissioning of this plant, which is scheduled for October 2008.
(b) Synergy has completed one tender, and is currently running a second.
(c) The tender that Synergy has completed was for up to 200 MW of electricity, and for up to 50 MW of renewable electricity. This supplements the 320 MW tender awarded to NewGen Power and two tenders for 81 MW renewable energy all completed prior to disaggregation.
(d) Synergy does not run tenders for power to supply the non-contestable segment of its portfolio. Instead it runs tenders for power to supply its customer portfolio, including non-contestable and contestable tariff customers, as well as contract customers. Synergy's total load varies according to market conditions. Currently, the proportion of Synergy's load that has been tendered is approximately 15 per cent, although it should be noted that some of the tendered load does not commence supply until 2009-10.
(e) Synergy has signed three electricity supply contracts as a result of the tender it has completed - one for 200 MW, one for 40 MW, and one for 1.5 MW. All three contracts are for electricity supply to commence from 1 October 2009. Synergy will use the electricity supply from these three contracts to help meet the requirements of both contestable and non-contestable customers.
(f) The Government will not need to change its Community Service Obligation policy. The Community Service Obligation only relates to tariffs for small business and residential customers, and Synergy is currently the only supplier of non-contestable customers. The Community Service Obligation payments will be made to Synergy to fund the difference between cost-reflective retail tariffs and the tariffs that Synergy will be allowed to charge to small business and residential customers, and is therefore a subsidy to residential and small business consumers who are not able to choose their electricity retailer.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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