A parliamentary question seeks information on the debt allocation, debt-servicing costs, and cash flow status of Western Power (Networks) following disaggregation. The Minister for Energy provides specific figures and confirms a positive cash flow.

AnsweredQoN 1231Legislative Assembly
Asked
14 June 2006
Portfolio
Energy

QuestionView source ↗

(b) how was that determined in the wake of disaggregation; (c) what are the debt-servicing costs; and (d) is Western Power (Networks) running, or projected to run, at a cash flow deficit?
(c) what are the debt-servicing costs; and (d) is Western Power (Networks) running, or projected to run, at a cash flow deficit?
(d) is Western Power (Networks) running, or projected to run, at a cash flow deficit?
The Minister for Energy has provided the following response: (1)(a) Western Power (Networks) was allocated $1,980M. (b) The closing 31 March 2006 Western Power Corporation debt was distributed to the four new entities in accordance with the debt allocation policy administered by the Electricity Reform Implementation Unit (ERIU). (c) The average interest cost of the debt taken up by Western Power (Networks) is 6.1%, resulting in an annual interest cost of $121M. (d) Western Power (Networks) generates a strong positive cash flow from operations and is forecast to continue to do so. Such a strong cash flow performance is consistent with the large asset base Western Power (Networks) owns and the design of the regulatory framework that Western Power (Networks) operates within.
(1)(a) Western Power (Networks) was allocated $1,980M. (b) The closing 31 March 2006 Western Power Corporation debt was distributed to the four new entities in accordance with the debt allocation policy administered by the Electricity Reform Implementation Unit (ERIU). (c) The average interest cost of the debt taken up by Western Power (Networks) is 6.1%, resulting in an annual interest cost of $121M. (d) Western Power (Networks) generates a strong positive cash flow from operations and is forecast to continue to do so. Such a strong cash flow performance is consistent with the large asset base Western Power (Networks) owns and the design of the regulatory framework that Western Power (Networks) operates within.
(b) The closing 31 March 2006 Western Power Corporation debt was distributed to the four new entities in accordance with the debt allocation policy administered by the Electricity Reform Implementation Unit (ERIU). (c) The average interest cost of the debt taken up by Western Power (Networks) is 6.1%, resulting in an annual interest cost of $121M. (d) Western Power (Networks) generates a strong positive cash flow from operations and is forecast to continue to do so. Such a strong cash flow performance is consistent with the large asset base Western Power (Networks) owns and the design of the regulatory framework that Western Power (Networks) operates within.
(c) The average interest cost of the debt taken up by Western Power (Networks) is 6.1%, resulting in an annual interest cost of $121M. (d) Western Power (Networks) generates a strong positive cash flow from operations and is forecast to continue to do so. Such a strong cash flow performance is consistent with the large asset base Western Power (Networks) owns and the design of the regulatory framework that Western Power (Networks) operates within.
(d) Western Power (Networks) generates a strong positive cash flow from operations and is forecast to continue to do so. Such a strong cash flow performance is consistent with the large asset base Western Power (Networks) owns and the design of the regulatory framework that Western Power (Networks) operates within.

AnswerView source ↗

Answered
1 August 2006
Responded by
Minister for Energy
Response time
48 days
Answer
The Minister for Energy has provided the following response:
(1)(a) Western Power (Networks) was allocated $1,980M.
(b) The closing 31 March 2006 Western Power Corporation debt was distributed to the four new entities in accordance with the debt allocation policy administered by the Electricity Reform Implementation Unit (ERIU).
(c) The average interest cost of the debt taken up by Western Power (Networks) is 6.1%, resulting in an annual interest cost of $121M.
(d) Western Power (Networks) generates a strong positive cash flow from operations and is forecast to continue to do so. Such a strong cash flow performance is consistent with the large asset base Western Power (Networks) owns and the design of the regulatory framework that Western Power (Networks) operates within.

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