❓ A WA parliamentary question addresses Horizon Power's funding, capital expenditure, and cost reflectivity of tariffs in regional WA, with the Minister providing non-committal responses, indicating ongoing consideration and balancing of factors.
AnsweredQoN 323Legislative Council
QuestionView source ↗
HORIZON POWER — ECONOMIC REGULATION AUTHORITY REPORT
I refer to the Economic Regulation Authority’s final report on its inquiry into the funding arrangements for Horizon Power. (1) Does the minister support the Economic Regulation Authority’s draft recommendation to reduce Horizon Power’s capital expenditure by more than $43 million, and does the minister expect that this reduction will be displaced by any private sector investment? (2) Will the upcoming state budget rectify the $275 million gap between the budgeted expenditure and the ERA’s recommended capital expenditure for Horizon Power? (3) What percentage of cost reflectivity is currently reached throughout towns in regional Western Australia? (4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER
I refer to the Economic Regulation Authority’s final report on its inquiry into the funding arrangements for Horizon Power. (1) Does the minister support the Economic Regulation Authority’s draft recommendation to reduce Horizon Power’s capital expenditure by more than $43 million, and does the minister expect that this reduction will be displaced by any private sector investment? (2) Will the upcoming state budget rectify the $275 million gap between the budgeted expenditure and the ERA’s recommended capital expenditure for Horizon Power? (3) What percentage of cost reflectivity is currently reached throughout towns in regional Western Australia? (4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER
AnswerView source ↗
I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(1) Does the minister support the Economic Regulation Authority’s draft recommendation to reduce Horizon Power’s capital expenditure by more than $43 million, and does the minister expect that this reduction will be displaced by any private sector investment? (2) Will the upcoming state budget rectify the $275 million gap between the budgeted expenditure and the ERA’s recommended capital expenditure for Horizon Power? (3) What percentage of cost reflectivity is currently reached throughout towns in regional Western Australia? (4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(2) Will the upcoming state budget rectify the $275 million gap between the budgeted expenditure and the ERA’s recommended capital expenditure for Horizon Power? (3) What percentage of cost reflectivity is currently reached throughout towns in regional Western Australia? (4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(3) What percentage of cost reflectivity is currently reached throughout towns in regional Western Australia? (4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(1) Does the minister support the Economic Regulation Authority’s draft recommendation to reduce Horizon Power’s capital expenditure by more than $43 million, and does the minister expect that this reduction will be displaced by any private sector investment? (2) Will the upcoming state budget rectify the $275 million gap between the budgeted expenditure and the ERA’s recommended capital expenditure for Horizon Power? (3) What percentage of cost reflectivity is currently reached throughout towns in regional Western Australia? (4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(2) Will the upcoming state budget rectify the $275 million gap between the budgeted expenditure and the ERA’s recommended capital expenditure for Horizon Power? (3) What percentage of cost reflectivity is currently reached throughout towns in regional Western Australia? (4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(3) What percentage of cost reflectivity is currently reached throughout towns in regional Western Australia? (4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(4) Does the government seek to reach cost-reflective tariffs in regional Western Australia; and, if so, over what period of time will cost-reflective prices be reached? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
I thank the member for some notice of this question. (1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(1) The government is presently considering the Economic Regulation Authority’s report and has not reached a final view on the report’s findings. The government will consider the recommendations of the final report as part of the 2011–12 budget process. (2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(2) The budget requirements for Horizon Power will be considered in the context of other budget demands as part of the normal budget process. (3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(3) Among other things, the Economic Regulation Authority report estimates the cost-reflective tariff for each town that Horizon Power supplies. This estimate is based on Horizon Power’s efficient cost to supply in each location. The report shows that gazetted tariffs are not cost-reflective at any of Horizon Power’s supply locations. (4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
(4) The government is considering how tariffs should be adjusted over time. In this regard, any benefits of the move to greater cost reflectivity must be balanced against social and economic impacts.
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