Question on Notice regarding the Premier's oversight of electricity reform (Synergy, Verve, Western Power, Horizon Power) and concerns about rising electricity prices, financial modelling failures, and accountability.

AnsweredQoN 1612Legislative Assembly
Asked
31 October 2006
Portfolio
Premier

QuestionView source ↗

The Premier has personally administered and overseen the development of Synergy, Verve Energy, Western Power and Horizon Power, formally Western Power. The Premier has threatened to increase electricity prices to compensate for what can be best defined as extremely predictable losses under most business modelling.
(1) Will the Premier explain and justify why such electricity reform was essential to deliver Western Australians –
(a) better prices;
(b) improved service standards including customer service;
(c) wider consumer choice; and
(d) a more reliable electricity supply?
(2) Will the Premier immediately release the Office of Energy and Treasury projected financial outcomes for the 2006-2007 and 2011-2012 financial years, for the following –
(a) Synergy;
(b) Verve;
(c) Western Power; and
(d) Horizon Power?
(3) How is the Office of Energy's financial modelling producing a $100 million plus shortfall in projected profit for the 2006-2007 financial year alone?
(4) How can four separate utilities with a current 50% increase in overall running costs operate as successfully as a single entity in any given financial year?
(5) How can four separate businesses provide cost efficiencies by reducing the duplication of services?
(6) How can four separate businesses operate successfully while facing a chronic shortage of skilled labour?
(7) How and when will the Office of Energy and Treasury be held accountable for the abject failure of their financial modelling that borders on criminal negligence?
(8) Please explain why the former Minister for Energy should not be held accountable for the incompetence of the Office of Energy and Treasury.

AnswerView source ↗

Answered
30 November 2006
Response time
30 days
(b) improved service standards including customer service; (c) wider consumer choice; and (d) a more reliable electricity supply?
(c) wider consumer choice; and (d) a more reliable electricity supply?
(d) a more reliable electricity supply?
(b) Verve; (c) Western Power; and (d) Horizon Power?
(c) Western Power; and (d) Horizon Power?
(d) Horizon Power?

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