❓ Ms Shaw asks about the ERA's recommendation to investigate Synergy's operations and concerns raised by the member for Bateman regarding Synergy's market power. The Minister responds critically of the ERA, defends Synergy, and accuses the member for Bateman of political maneuvering.
AnsweredQoN 250Legislative Assembly
QuestionView source ↗
ECONOMIC REGULATION AUTHORITY — SYNERGY
RECOMMENDATIONS
250. Ms J.J. SHAW to the Minister for Energy:
I refer to the recommendation by the
Economic Regulation Authority that the Electricity Review Board investigate the
operations of Synergy. Can the minister update the house on the circumstances
of this issue and concerns raised by the member for Bateman regarding Synergy's
market power?
RECOMMENDATIONS
250. Ms J.J. SHAW to the Minister for Energy:
I refer to the recommendation by the
Economic Regulation Authority that the Electricity Review Board investigate the
operations of Synergy. Can the minister update the house on the circumstances
of this issue and concerns raised by the member for Bateman regarding Synergy's
market power?
AnswerView source ↗
Thank you very much for the
question. This is a very asinine issue that the ERA has raised with the ERB. I was
very interested in the conversation on radio yesterday from the member for
Bateman. I will quote part of the transcript. Oliver Peterson asked the member —
So you'll be pursuing this in
the Parliament?
The member replied —
Sorry?
Mr Peterson replied —
You'll be pursuing this in
the Parliament?
There was a long pause —
Yes we will be pursuing it.
Unfortunately, of course, the member
for Bateman has not pursued it in Parliament, but it is something that I am
very interested to talk about. This recommendation of the ERA is not something
that I am happy with. My view is that it reflects very badly on the ERA and it
follows other bad decisions of the ERA in recent times that are holding back
the industry. On Friday I was having breakfast with a number of industry
leaders and they were complaining about the
operations of the regulator. I will give members some examples. The Australian
Energy Market Operator's market-development functions are being
stopped. The planning and reform process has been stopped because of the
actions of the ERA. Western Power's AA4 decision by the ERA when two
final decisions were given, which is extraordinary, allowed the institution of
advanced metering infrastructure but not the communications to make them
effective. The ERA has also transferred $250 million of costs from business to
the mums and dads in this state. The ERA is asking mums and dads to subsidise
business by $250 million.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr W.J. JOHNSTON : They are
all decisions that reflect badly on the ERA and I am very unhappy with all of
them. This recommendation regarding Synergy relates to the period from March
2016 to July 2017. Let us understand why it was required. It was required
because Verve Energy and Synergy were amalgamating. The unloved and unwarranted
amalgamation of Verve Energy and Synergy led to this decision. I point out to
members that the last time these issues were raised by the ERA with the ERB,
the penalty was $1. The ERA has a bad reputation here. It has made a series of
bad decisions that are costing consumers in this state and holding back the
development of the system.
I was very amused by the shadow
Minister for Energy's commentary on radio. He said —
� what this report reinforces, Ollie,
is that a lack of competition is showing a flow-on effect of higher prices into
the marketplace.
He went on to say —
Well we believe it needs to be opened
up to competitors �
He went on further to say that he
was� —
� concerned about someone that has
such an influence in the marketplace, �
The problem is that this is the system
created by the member for Riverton. Why is the member for Bateman attacking the
member for Riverton so strongly? The member for Riverton amalgamated Verve and
Synergy. The member for Riverton stopped competition and he was in charge of
the electricity system during the overwhelming majority of the circumstances
being investigated by the Economic Regulation Authority. It was a 15-month
investigation for the 12 months that the member for Riverton was the Minister
for Energy. Perhaps I have an answer for members in the chamber and the member
for Swan Hills; it is just another example of the member for Bateman
undermining a Liberal Party leader. He has done it once before and now he is
doing it again. Perhaps he needs to go and see his friend Greg Poland, who
helped to fund his attack on Colin Barnett. Maybe the member for Bateman's
friend Mr Poland wants to help him pay for an attack on the member for
Riverton.
question. This is a very asinine issue that the ERA has raised with the ERB. I was
very interested in the conversation on radio yesterday from the member for
Bateman. I will quote part of the transcript. Oliver Peterson asked the member —
So you'll be pursuing this in
the Parliament?
The member replied —
Sorry?
Mr Peterson replied —
You'll be pursuing this in
the Parliament?
There was a long pause —
Yes we will be pursuing it.
Unfortunately, of course, the member
for Bateman has not pursued it in Parliament, but it is something that I am
very interested to talk about. This recommendation of the ERA is not something
that I am happy with. My view is that it reflects very badly on the ERA and it
follows other bad decisions of the ERA in recent times that are holding back
the industry. On Friday I was having breakfast with a number of industry
leaders and they were complaining about the
operations of the regulator. I will give members some examples. The Australian
Energy Market Operator's market-development functions are being
stopped. The planning and reform process has been stopped because of the
actions of the ERA. Western Power's AA4 decision by the ERA when two
final decisions were given, which is extraordinary, allowed the institution of
advanced metering infrastructure but not the communications to make them
effective. The ERA has also transferred $250 million of costs from business to
the mums and dads in this state. The ERA is asking mums and dads to subsidise
business by $250 million.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr W.J. JOHNSTON : They are
all decisions that reflect badly on the ERA and I am very unhappy with all of
them. This recommendation regarding Synergy relates to the period from March
2016 to July 2017. Let us understand why it was required. It was required
because Verve Energy and Synergy were amalgamating. The unloved and unwarranted
amalgamation of Verve Energy and Synergy led to this decision. I point out to
members that the last time these issues were raised by the ERA with the ERB,
the penalty was $1. The ERA has a bad reputation here. It has made a series of
bad decisions that are costing consumers in this state and holding back the
development of the system.
I was very amused by the shadow
Minister for Energy's commentary on radio. He said —
� what this report reinforces, Ollie,
is that a lack of competition is showing a flow-on effect of higher prices into
the marketplace.
He went on to say —
Well we believe it needs to be opened
up to competitors �
He went on further to say that he
was� —
� concerned about someone that has
such an influence in the marketplace, �
The problem is that this is the system
created by the member for Riverton. Why is the member for Bateman attacking the
member for Riverton so strongly? The member for Riverton amalgamated Verve and
Synergy. The member for Riverton stopped competition and he was in charge of
the electricity system during the overwhelming majority of the circumstances
being investigated by the Economic Regulation Authority. It was a 15-month
investigation for the 12 months that the member for Riverton was the Minister
for Energy. Perhaps I have an answer for members in the chamber and the member
for Swan Hills; it is just another example of the member for Bateman
undermining a Liberal Party leader. He has done it once before and now he is
doing it again. Perhaps he needs to go and see his friend Greg Poland, who
helped to fund his attack on Colin Barnett. Maybe the member for Bateman's
friend Mr Poland wants to help him pay for an attack on the member for
Riverton.
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