❓ Mr Grylls questions the impact of Western Power's profit decline on regional network upgrades and underground power in the cyclone-prone northwest. Minister Logan defends the performance of the split entities and assures continued funding for regional areas.
AnsweredQoN 726Legislative Assembly
QuestionView source ↗
WESTERN POWER - NETWORKS UPGRADE
I have a question about the real issue with power. I refer to an article in The West Australian of Saturday, 7 October titled “Power bills must rise, says Premier” in which he is reported as stating that Western Power’s profit in 2003-04 was $241 million. (1) Given that the four companies created by the Western Power split are expected to report a combined profit of just $16 million by 2009-10, can the minister explain where the funds will come from to upgrade networks in regional areas? (2) Given the importance of underground power in the cyclone-prone north west, will the profit downgrade lead to the delay of this scheme? Mr F.M. LOGAN
I have a question about the real issue with power. I refer to an article in The West Australian of Saturday, 7 October titled “Power bills must rise, says Premier” in which he is reported as stating that Western Power’s profit in 2003-04 was $241 million. (1) Given that the four companies created by the Western Power split are expected to report a combined profit of just $16 million by 2009-10, can the minister explain where the funds will come from to upgrade networks in regional areas? (2) Given the importance of underground power in the cyclone-prone north west, will the profit downgrade lead to the delay of this scheme? Mr F.M. LOGAN
AnswerView source ↗
I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
(1) Given that the four companies created by the Western Power split are expected to report a combined profit of just $16 million by 2009-10, can the minister explain where the funds will come from to upgrade networks in regional areas? (2) Given the importance of underground power in the cyclone-prone north west, will the profit downgrade lead to the delay of this scheme? Mr F.M. LOGAN replied: I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
(2) Given the importance of underground power in the cyclone-prone north west, will the profit downgrade lead to the delay of this scheme? Mr F.M. LOGAN replied: I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
Mr F.M. LOGAN replied: I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
(1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
(1) Given that the four companies created by the Western Power split are expected to report a combined profit of just $16 million by 2009-10, can the minister explain where the funds will come from to upgrade networks in regional areas? (2) Given the importance of underground power in the cyclone-prone north west, will the profit downgrade lead to the delay of this scheme? Mr F.M. LOGAN replied: I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
(2) Given the importance of underground power in the cyclone-prone north west, will the profit downgrade lead to the delay of this scheme? Mr F.M. LOGAN replied: I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
Mr F.M. LOGAN replied: I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
I thank the member for his question. (1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
(1)-(2) Let us go through the four entities. The member has probably looked at the annual reports that were tabled two weeks ago. Horizon Power had a better than expected result, and it is doing a fantastic job in delivering services to the regions. The member would know that; he has been to the north west. He knows what people are saying. They are saying that at last they have a regional power organisation that cares about local people in regional areas and is delivering on the ground. We will fund the roll-out of the transmission system in that regional area that is off the grid in the same way as we always have. It was subsidised by Western Power when it was a whole entity, and it also gets support now under the tariff equalisation fund. Also, as a publicly owned organisation, it can make a request for further capital funding. It is doing a fantastic job. Synergy, as the retailer, has returned a $17 million profit. That is 14 per cent above its budgeted estimation. That was not reported by The West Australian ! It is too good a story! Synergy is going down very well with the general public. People know that it is a customer-focused organisation. It is delivering in the area of billing, and it is delivering in the area of connections. Verve does have a lot of problems and issues. It is going into a competitive market, with old power plant and old generators. It has had an intensive maintenance program throughout the whole of the past two years. It has had shortages of gas, because of outages on the pipeline due to the upgrade of the pipeline. It has also had to burn fuel at a time when fuel prices are at a historic high. That is the reason Verve has been faced with a decrease in its profit margin. In terms of Western Power Networks in the member’s area, the member seems to forget the amount of money that previous energy ministers have poured into the networks. Western Power Networks will receive $1.8 billion in capital funding over the next four years to enable it to deliver an improvement in services in the member’s area. The member knows that the services are improving day by day.
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