A parliamentary question regarding the impact of tariff increases on Synergy's earnings before interest and tax (EBIT) as detailed in the 2011-12 budget papers. The answer clarifies that Synergy is compensated for non-cost-reflective tariffs, negating any impact on its EBIT.

AnsweredQoN 7549Legislative Assembly
Asked
21 March 2012
Portfolio
Energy

QuestionView source ↗

I refer to Table 8.1 on page 286 of Budget Paper No.3 of the 2011–12 Budget, and I ask:
(a) has the Minister sought or received advice on the effect on earnings before interest and tax for Synergy in the financial years 2012–13, 2013–14 and 2014–15 by applying the assumed increase in tariffs detailed in the Budget Papers;
(b) what is the effect on earnings before interest and tax for Synergy in the financial years 2012–13, 2013–14 and 2014–15 by applying the assumed increase in tariffs detailed in the Budget Papers?

AnswerView source ↗

Answered
2 May 2012
Responded by
Minister representing the Minister for Energy
Response time
42 days
a) Yes
b) Synergy is compensated by the Government for non cost reflective tariffs through the tariff adjustment payment. As a result, any change to tariffs does not have an impact on Synergy's earnings before interest and tax, as it would be offset by amendment to the adjustment payment.
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