A WA parliamentary question seeks clarification on Western Power's claim that consultant expenditure led to significant operating cost reductions. The Minister supports the claim and provides a breakdown of cost reduction actions.

AnsweredQoN 1338Legislative Assembly
Asked
29 October 2013
Portfolio
Energy

QuestionView source ↗

(1) Does the Minister support the claim by Western Power that the expenditure of $5,398,132 on consultants in 2012–2013 (Deloitte: $1,484,525.06, Ernst & Young $3,913,607.30) directly yielded operating cost reductions of $25.5 million in 2012–2013? (2) Will the Minister provide a breakdown of these operating cost reductions in 2012–2013?

AnswerView source ↗

Answered
3 December 2013
Responded by
Minister for Energy
Response time
35 days
Answer
(1) Based upon the advice provided to me by Western Power, yes, I support Western Power's claim that this expenditure directly contributed to it achieving operating cost reductions of $25.5 million during the year.
(2)  A range of cost reduction actions have been taken across the business including:
· Increased efficiency in delivering the works program through a combination of less headcount, consolidating roles, freezing recruitment and the removal of long term embedded contractors;
· Lower expenditure on associated HR programs such as training;
· Lower expenditure on consultants and maximising the use of the technical capability within the business;
· Conscious reduction in travel, entertainment and executive expenditure;
· Lower expenditure on corporate communications and sponsorship programs;
· Reduced levels of planned and unplanned operating expenditure due to improved maintenance and inspection programs; and
· Improved governance and controls to ensure appropriate levels of expenditure are incurred in scoping and planning on capital projects.

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