Hon. Kate Doust questions Alinta's tariff increases and new charges, inquiring about the legal basis, government approval, and support for these charges. Hon. Peter Collier responds, clarifying Alinta's authority under existing legislation and the government's current position.

AnsweredQoN 938Legislative Council
Asked
1 November 2011
Portfolio
Energy

QuestionView source ↗

ALINTA — TARIFF INCREASES AND NEW CHARGES
I refer to Alinta’s recent tariff increases, and its new account administration fee and a retail market levy. (1) Under what legislation, code or market rule is Alinta able to charge Western Australian gas consumers these new flat taxes? (2) Did the minister approve any of these charges; and, if so, when, and for what reasons? (3) Does the Barnett government support the introduction of these new charges? (4) Given the minister received the final gas tariff report on 18 July, why has it taken over three months to consider and release the report and its recommendations? Hon PETER COLLIER

AnswerView source ↗

I thank the member for some notice of this question. (1) Alinta is able to charge fees to customers under its standard form contract, which is a requirement under the Energy Coordination Act 1994 and is approved by the Economic Regulation Authority. These fees are distinct from regulated gas tariffs, which are determined by government. (2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
(1) Under what legislation, code or market rule is Alinta able to charge Western Australian gas consumers these new flat taxes? (2) Did the minister approve any of these charges; and, if so, when, and for what reasons? (3) Does the Barnett government support the introduction of these new charges? (4) Given the minister received the final gas tariff report on 18 July, why has it taken over three months to consider and release the report and its recommendations? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) Alinta is able to charge fees to customers under its standard form contract, which is a requirement under the Energy Coordination Act 1994 and is approved by the Economic Regulation Authority. These fees are distinct from regulated gas tariffs, which are determined by government. (2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
(2) Did the minister approve any of these charges; and, if so, when, and for what reasons? (3) Does the Barnett government support the introduction of these new charges? (4) Given the minister received the final gas tariff report on 18 July, why has it taken over three months to consider and release the report and its recommendations? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) Alinta is able to charge fees to customers under its standard form contract, which is a requirement under the Energy Coordination Act 1994 and is approved by the Economic Regulation Authority. These fees are distinct from regulated gas tariffs, which are determined by government. (2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
(3) Does the Barnett government support the introduction of these new charges? (4) Given the minister received the final gas tariff report on 18 July, why has it taken over three months to consider and release the report and its recommendations? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) Alinta is able to charge fees to customers under its standard form contract, which is a requirement under the Energy Coordination Act 1994 and is approved by the Economic Regulation Authority. These fees are distinct from regulated gas tariffs, which are determined by government. (2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
(4) Given the minister received the final gas tariff report on 18 July, why has it taken over three months to consider and release the report and its recommendations? Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) Alinta is able to charge fees to customers under its standard form contract, which is a requirement under the Energy Coordination Act 1994 and is approved by the Economic Regulation Authority. These fees are distinct from regulated gas tariffs, which are determined by government. (2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
Hon PETER COLLIER replied: I thank the member for some notice of this question. (1) Alinta is able to charge fees to customers under its standard form contract, which is a requirement under the Energy Coordination Act 1994 and is approved by the Economic Regulation Authority. These fees are distinct from regulated gas tariffs, which are determined by government. (2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
I thank the member for some notice of this question. (1) Alinta is able to charge fees to customers under its standard form contract, which is a requirement under the Energy Coordination Act 1994 and is approved by the Economic Regulation Authority. These fees are distinct from regulated gas tariffs, which are determined by government. (2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
(1) Alinta is able to charge fees to customers under its standard form contract, which is a requirement under the Energy Coordination Act 1994 and is approved by the Economic Regulation Authority. These fees are distinct from regulated gas tariffs, which are determined by government. (2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
(2) No. The government currently has no role in regulating what can and cannot be recovered through fees, but it will consider reviewing these arrangements, (3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
(3) This is a matter for Alinta. Despite a recommended increase of 30.2 per cent by 1 January 2012 for the average residential customer in the Mid West–south west area, the government increased retail gas tariffs by 10 per cent on 1 August 2011. The new fees introduced by Alinta on 4 September 2011 will be taken into consideration by the government as part of future assessments of gas tariffs. (4) The issues covered by the report are complex and therefore require careful consideration by government.
(4) The issues covered by the report are complex and therefore require careful consideration by government.

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