Hon Norman Moore questions the basis for Griffin Energy's electricity sales to Synergy, inquiring about competitive tender processes and government assurances. Hon Kim Chance confirms competitive tenders exist, Griffin was a preferred bidder, and no assurances were given for future tenders.

AnsweredQoN 507Legislative Council
Asked
27 May 2008
Portfolio
Energy

QuestionView source ↗

GRIFFIN ENERGY — ELECTRICITY SALES TO SYNERGY
I refer the minister to publicly announced plans by Griffin Energy to build new coal-fired power stations with the aim of selling energy through Synergy. (1) Has there been a competitive tender process or any other competitive process by which Griffin has proved its ability to supply electricity to the south west interconnected system grid at the lowest price? (2) If not, on what basis is Griffin able to assume that it will be selling power to Synergy for electricity retail sales? (3) Has the government given any assurance to Griffin that Synergy will take power from its proposed plants; and, if so, why? Hon KIM CHANCE

AnswerView source ↗

I thank the honourable Leader of the Opposition for the question. (1) Yes. Synergy has completed two competitive tender processes for the wholesale supply of electricity and is currently running a third such process. Synergy selected Griffin as the preferred bidder for the first such process, and has signed contracts with Griffin for 200 megawatts of supply from Griffin’s Bluewaters power stations, beginning from October 2009. (2) Not applicable. (3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.
(1) Has there been a competitive tender process or any other competitive process by which Griffin has proved its ability to supply electricity to the south west interconnected system grid at the lowest price? (2) If not, on what basis is Griffin able to assume that it will be selling power to Synergy for electricity retail sales? (3) Has the government given any assurance to Griffin that Synergy will take power from its proposed plants; and, if so, why? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for the question. (1) Yes. Synergy has completed two competitive tender processes for the wholesale supply of electricity and is currently running a third such process. Synergy selected Griffin as the preferred bidder for the first such process, and has signed contracts with Griffin for 200 megawatts of supply from Griffin’s Bluewaters power stations, beginning from October 2009. (2) Not applicable. (3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.
(2) If not, on what basis is Griffin able to assume that it will be selling power to Synergy for electricity retail sales? (3) Has the government given any assurance to Griffin that Synergy will take power from its proposed plants; and, if so, why? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for the question. (1) Yes. Synergy has completed two competitive tender processes for the wholesale supply of electricity and is currently running a third such process. Synergy selected Griffin as the preferred bidder for the first such process, and has signed contracts with Griffin for 200 megawatts of supply from Griffin’s Bluewaters power stations, beginning from October 2009. (2) Not applicable. (3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.
(3) Has the government given any assurance to Griffin that Synergy will take power from its proposed plants; and, if so, why? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for the question. (1) Yes. Synergy has completed two competitive tender processes for the wholesale supply of electricity and is currently running a third such process. Synergy selected Griffin as the preferred bidder for the first such process, and has signed contracts with Griffin for 200 megawatts of supply from Griffin’s Bluewaters power stations, beginning from October 2009. (2) Not applicable. (3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.
Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for the question. (1) Yes. Synergy has completed two competitive tender processes for the wholesale supply of electricity and is currently running a third such process. Synergy selected Griffin as the preferred bidder for the first such process, and has signed contracts with Griffin for 200 megawatts of supply from Griffin’s Bluewaters power stations, beginning from October 2009. (2) Not applicable. (3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.
I thank the honourable Leader of the Opposition for the question. (1) Yes. Synergy has completed two competitive tender processes for the wholesale supply of electricity and is currently running a third such process. Synergy selected Griffin as the preferred bidder for the first such process, and has signed contracts with Griffin for 200 megawatts of supply from Griffin’s Bluewaters power stations, beginning from October 2009. (2) Not applicable. (3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.
(1) Yes. Synergy has completed two competitive tender processes for the wholesale supply of electricity and is currently running a third such process. Synergy selected Griffin as the preferred bidder for the first such process, and has signed contracts with Griffin for 200 megawatts of supply from Griffin’s Bluewaters power stations, beginning from October 2009. (2) Not applicable. (3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.
(2) Not applicable. (3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.
(3) No. Neither the government nor Synergy has given any assurances to Griffin that Synergy will take power from Griffin’s proposed power stations under Synergy’s current competitive tender process or any future competitive tender processes.

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