❓ A WA parliamentary question probes electricity tariff increases, cost reflectivity, and the lack of public consultation on recent reviews, prompting a detailed response outlining tariff modelling, budget assumptions, and future review plans.
AnsweredQoN 904Legislative Council
QuestionView source ↗
ELECTRICITY TARIFFS — INCREASES
(1) According to the most recent review into electricity tariffs by the Office of Energy and Treasury, by what percentage do electricity tariffs have to further rise to achieve cost reflectivity? (2) Given that the Office of Energy’s 2009 review of electricity tariff arrangements was first released as a draft and was open for public consultation, why was public consultation not conducted for this most recent review? (3) As the 2009 review report was made public, will the minister now table the report on the most current review; and, if not, why does the minister continue to hide his government’s plan for tariff increases from Western Australia’s energy consumers? Hon PETER COLLIER
(1) According to the most recent review into electricity tariffs by the Office of Energy and Treasury, by what percentage do electricity tariffs have to further rise to achieve cost reflectivity? (2) Given that the Office of Energy’s 2009 review of electricity tariff arrangements was first released as a draft and was open for public consultation, why was public consultation not conducted for this most recent review? (3) As the 2009 review report was made public, will the minister now table the report on the most current review; and, if not, why does the minister continue to hide his government’s plan for tariff increases from Western Australia’s energy consumers? Hon PETER COLLIER
AnswerView source ↗
I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(2) Given that the Office of Energy’s 2009 review of electricity tariff arrangements was first released as a draft and was open for public consultation, why was public consultation not conducted for this most recent review? (3) As the 2009 review report was made public, will the minister now table the report on the most current review; and, if not, why does the minister continue to hide his government’s plan for tariff increases from Western Australia’s energy consumers? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(3) As the 2009 review report was made public, will the minister now table the report on the most current review; and, if not, why does the minister continue to hide his government’s plan for tariff increases from Western Australia’s energy consumers? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(2) Given that the Office of Energy’s 2009 review of electricity tariff arrangements was first released as a draft and was open for public consultation, why was public consultation not conducted for this most recent review? (3) As the 2009 review report was made public, will the minister now table the report on the most current review; and, if not, why does the minister continue to hide his government’s plan for tariff increases from Western Australia’s energy consumers? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(3) As the 2009 review report was made public, will the minister now table the report on the most current review; and, if not, why does the minister continue to hide his government’s plan for tariff increases from Western Australia’s energy consumers? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
I thank the honourable member for some notice of the question. (1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(1) Based on the most recent modelling, the Office of Energy has advised that the regulated residential electricity tariff is currently 28.8 per cent below the cost of supply. (2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(2) The 2009 review of electricity tariff arrangements was a comprehensive review of most components and tariff structures that had remained unchanged for more than 10 years. Public consultation was warranted due to the scope of the review. Subsequent tariff modelling has been largely based on the 2009 review with adjustments made to some cost components to reflect new cost pressures, such as network tariffs independently determined by the Economic Regulation Authority. Adjustments to tariff models were required to inform the state budget process. (3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
(3) There was no review completed. Tariff modelling conducted for state budget purposes is an annual adjustment process. However, in July 2010, the government requested the Economic Regulation Authority to undertake a comprehensive review of the efficient cost-reflective level of each regulated electricity tariff. This process will involve public consultation. In August 2011, the authority released an issues paper on the matter for public comment. For budget planning purposes, the 2011–12 state budget assumes that residential electricity tariffs will increase by five per cent in 2012–13 and by 12 per cent in each of 2013–14 and 2014–15. The government will make a decision on future tariff increases as part of the 2012–13 budget.
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