❓ Minister updates on Horizon Power's subsidy reductions, cost-saving initiatives, and renewable energy focus, while criticising the opposition's past energy policies and accusing them of misleading Parliament.
AnsweredQoN 929Legislative Assembly
QuestionView source ↗
HORIZON POWER — SUBSIDY
REDUCTIONS
929. Dr G.G. JACOBS to the Minister for
Energy:
Can the minister please update the
house on Horizon Power's subsidy reductions and other cost-saving
initiatives?
REDUCTIONS
929. Dr G.G. JACOBS to the Minister for
Energy:
Can the minister please update the
house on Horizon Power's subsidy reductions and other cost-saving
initiatives?
AnswerView source ↗
I thank the member for Eyre for the
question. This is an important issue in his electorate, which is serviced by
Horizon Power. As members know, Horizon Power is quite an interesting organisation.
It has 47 000 customers, spread over 2.5 million square kilometres. When we
came into government, its asset base was really run down. When it was split
from the old Western Power, it was like an afterthought. As with many of the
things in rural Western Australia, we had to come in and retool it. We invested
over $1 billion in Horizon Power, and we are continuing to do that in the
member's electorate and a range of electorates.
Part of that was that when we came
into government, the subsidy—the tariff equalisation contribution—that
the Labor Party set up to be paid for people in the south west integrated
system, was growing very rapidly. So I asked Horizon Power to undertake a major
reform of their organisation, and we are targeting reducing the TEC, which in
2012 was $141 million, by $100 million a year. There was some growth in that
from that starting point. They have achieved this year a $90 million reduction
and they expect to accomplish the target by the end of 2017–18—phenomenal.
They have also repositioned the business so that they are focusing on bringing
renewable and battery technology to the many customers that they have. As the
member for Eyre knows, when the fires went through the Esperance area about a year
ago, they destroyed many powerlines. We are replacing some of those powerlines
with standalone technology, battery and solar, in a test situation to see how
farmers work with it. We are doing this in Carnarvon. We are doing it in
Onslow. We are doing it across their area. Horizon Power is becoming one of the
leaders in renewable standalone technology—phenomenal. Good job. They
are also, of course, servicing the people of Karratha. However, the tariff
equalisation contribution still was a large amount. There has been a lot of
nonsense spread by people opposite about the TEC. During the last election,
they committed to removing the TEC that is paid by Western Power to compensate
Horizon Power, and Horizon Power then passes it on to the retailers. The
largest one, of course, is Synergy. But it is paid by all consumers of
electricity in the south west integrated system. Therefore, the TEC is
effectively a tax—a Labor tax—on electricity consumers to
subsidise Horizon Power's customers. In the debate around whether we
should sell Western Power, the Leader of the Opposition went to the 2013
election with a commitment to pay the TEC out of consolidated funds and save
electricity consumers, he claimed, $141 million. Now he has been saying in this
house repeatedly that consumers do not pay it—Western Power pays it out
of its profit. The Leader of the Opposition has been consistently misleading
Parliament. He should stand and apologise for misleading Parliament repeatedly.
Several members interjected.
The
SPEAKER : Member for Victoria Park! Treasurer, you have 30 seconds to wind
this up as well.
Dr
M.D. NAHAN : He will not apologise; he is not a man of integrity. He is
consistently misleading Parliament and this is a foretaste of what we have to
come. We will hear falsehoods and misrepresentations from people opposite and
scare campaigns the like of which we have never seen before. One thing we can
guarantee: that —
Mr
R.F. Johnson : There's been a lot of dishonesty from your side.
Several members interjected.
The
SPEAKER : Member for Hillarys, I am on my feet; I call you to order for the
first time. Member for Cannington, I call you to order for the first time. You
know the rules about bringing items in here and waving them around; put it
away. We have seen enough of it!
Mr
B.S. Wyatt : That goes for the sign as well!
Dr
M.D. NAHAN : The member for Hillarys says there is a lot of dishonesty in
the government. He was a senior minister; in fact, he was the manager of
government business in this house. Where was he?
All I can say is —
Several members interjected.
The
SPEAKER : All right; let us move on!
Several members interjected.
The
SPEAKER : Treasurer, you have 30 seconds.
Dr
M.D. NAHAN : Congratulate Horizon Power for fixing the Labor Party's
mess and reducing the tax that Labor imposed on electricity consumers.
question. This is an important issue in his electorate, which is serviced by
Horizon Power. As members know, Horizon Power is quite an interesting organisation.
It has 47 000 customers, spread over 2.5 million square kilometres. When we
came into government, its asset base was really run down. When it was split
from the old Western Power, it was like an afterthought. As with many of the
things in rural Western Australia, we had to come in and retool it. We invested
over $1 billion in Horizon Power, and we are continuing to do that in the
member's electorate and a range of electorates.
Part of that was that when we came
into government, the subsidy—the tariff equalisation contribution—that
the Labor Party set up to be paid for people in the south west integrated
system, was growing very rapidly. So I asked Horizon Power to undertake a major
reform of their organisation, and we are targeting reducing the TEC, which in
2012 was $141 million, by $100 million a year. There was some growth in that
from that starting point. They have achieved this year a $90 million reduction
and they expect to accomplish the target by the end of 2017–18—phenomenal.
They have also repositioned the business so that they are focusing on bringing
renewable and battery technology to the many customers that they have. As the
member for Eyre knows, when the fires went through the Esperance area about a year
ago, they destroyed many powerlines. We are replacing some of those powerlines
with standalone technology, battery and solar, in a test situation to see how
farmers work with it. We are doing this in Carnarvon. We are doing it in
Onslow. We are doing it across their area. Horizon Power is becoming one of the
leaders in renewable standalone technology—phenomenal. Good job. They
are also, of course, servicing the people of Karratha. However, the tariff
equalisation contribution still was a large amount. There has been a lot of
nonsense spread by people opposite about the TEC. During the last election,
they committed to removing the TEC that is paid by Western Power to compensate
Horizon Power, and Horizon Power then passes it on to the retailers. The
largest one, of course, is Synergy. But it is paid by all consumers of
electricity in the south west integrated system. Therefore, the TEC is
effectively a tax—a Labor tax—on electricity consumers to
subsidise Horizon Power's customers. In the debate around whether we
should sell Western Power, the Leader of the Opposition went to the 2013
election with a commitment to pay the TEC out of consolidated funds and save
electricity consumers, he claimed, $141 million. Now he has been saying in this
house repeatedly that consumers do not pay it—Western Power pays it out
of its profit. The Leader of the Opposition has been consistently misleading
Parliament. He should stand and apologise for misleading Parliament repeatedly.
Several members interjected.
The
SPEAKER : Member for Victoria Park! Treasurer, you have 30 seconds to wind
this up as well.
Dr
M.D. NAHAN : He will not apologise; he is not a man of integrity. He is
consistently misleading Parliament and this is a foretaste of what we have to
come. We will hear falsehoods and misrepresentations from people opposite and
scare campaigns the like of which we have never seen before. One thing we can
guarantee: that —
Mr
R.F. Johnson : There's been a lot of dishonesty from your side.
Several members interjected.
The
SPEAKER : Member for Hillarys, I am on my feet; I call you to order for the
first time. Member for Cannington, I call you to order for the first time. You
know the rules about bringing items in here and waving them around; put it
away. We have seen enough of it!
Mr
B.S. Wyatt : That goes for the sign as well!
Dr
M.D. NAHAN : The member for Hillarys says there is a lot of dishonesty in
the government. He was a senior minister; in fact, he was the manager of
government business in this house. Where was he?
All I can say is —
Several members interjected.
The
SPEAKER : All right; let us move on!
Several members interjected.
The
SPEAKER : Treasurer, you have 30 seconds.
Dr
M.D. NAHAN : Congratulate Horizon Power for fixing the Labor Party's
mess and reducing the tax that Labor imposed on electricity consumers.
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