A WA parliamentary question seeks information on Western Power's efficiency compared to world best practice and the government's plans for Best Management Practice (BMP) studies, particularly in light of the planned disaggregation of Western Power. The answer details existing benchmarking activities and demand management initiatives.

AnsweredQoN 2158Legislative Assembly
Asked
15 October 2003
Portfolio
Energy

QuestionView source ↗

(1) What studies have been carried out to determine where Western Power’s electricity generation, transmission and distribution efficiencies sit in relation to world best practice?
(2) Has a Best Management Practice (BMP) study been carried out recently?
(3) If yes, how does Western Power compare with world best practice in these three aspects of its activities?
(4) If no, why not and will such a BMP study be carried out as part of the Government’s current plans to disaggregate Western Power?
(5) Similarly, what studies exist to show where the rates of industrial and domestic electricity usage in Western Australia (i.e. its electrical energy intensity) sit in relation to world best practice?
(6) If none exist, will Western Power undertake BMP studies so that Western Australia’s industrial and domestic electricity usage rates can be compared with world best practice?
(7) Is the Minister aware of electricity utilities in the USA which carried out demand management studies in the 1990s as part of their planning for new generation capacity and which then applied demand management strategies so successfully that the need for new generation capacity was deferred for more than 10 years?

AnswerView source ↗

Answered
4 December 2003
Responded by
Minister for Energy
Response time
50 days
Western Power participates in the Electricity Supply Association of Australia (ESAA) Performance Benchmarking Studies for Australian producers, which is conducted annually. Western Power’s performance varies depending on the area or the business and performance measure applied. Detailed information is available in the ESAA publication 'Electricity Australia 2003'. International comparisons are less available with participation normally being by a particular business unit. As a result of a worldwide benchmarking studies of its operations from 1995 to 1998 by the Generation Business Unit, a major transformation project was initiated in 1999 and concluded in 2000. Under this project, the organization was restructured to conform to world best practices. Western Power also participates in the 'International Transmission Operations and Maintenance Survey' (ITOMS), which is conducted every second year. The most recent study results are currently being compiled. Western Power has seen consistent improvements in its performance since the first study in 1997. In addition, Western Power commissioned an international benchmarking study in 2000. The competitive performance of Generation, Transmission and Distribution was assessed which showed substantial gains in efficiencies of the three areas since 1995. A number of functional areas were reported to be operating near best practice. Additional studies are not planned as part of the disaggregation of Western Power as they are a normal part of doing business for several of the business units. (5) Western Power and other organisations provide data to the Office of Energy which publishes energy supply and demand information in the publication "Energy Western Australia". Similar data is also used by used by the Australian Bureau of Agriculture and Resource Economics (ABARE) to report on energy intensity trends in Australia. A major study on energy intensity trends in Australia has recently been commissioned by a Ministerial Council on Energy Working Group. This is available from the ABARE website. Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
International comparisons are less available with participation normally being by a particular business unit. As a result of a worldwide benchmarking studies of its operations from 1995 to 1998 by the Generation Business Unit, a major transformation project was initiated in 1999 and concluded in 2000. Under this project, the organization was restructured to conform to world best practices. Western Power also participates in the 'International Transmission Operations and Maintenance Survey' (ITOMS), which is conducted every second year. The most recent study results are currently being compiled. Western Power has seen consistent improvements in its performance since the first study in 1997. In addition, Western Power commissioned an international benchmarking study in 2000. The competitive performance of Generation, Transmission and Distribution was assessed which showed substantial gains in efficiencies of the three areas since 1995. A number of functional areas were reported to be operating near best practice. Additional studies are not planned as part of the disaggregation of Western Power as they are a normal part of doing business for several of the business units. (5) Western Power and other organisations provide data to the Office of Energy which publishes energy supply and demand information in the publication "Energy Western Australia". Similar data is also used by used by the Australian Bureau of Agriculture and Resource Economics (ABARE) to report on energy intensity trends in Australia. A major study on energy intensity trends in Australia has recently been commissioned by a Ministerial Council on Energy Working Group. This is available from the ABARE website. Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
As a result of a worldwide benchmarking studies of its operations from 1995 to 1998 by the Generation Business Unit, a major transformation project was initiated in 1999 and concluded in 2000. Under this project, the organization was restructured to conform to world best practices. Western Power also participates in the 'International Transmission Operations and Maintenance Survey' (ITOMS), which is conducted every second year. The most recent study results are currently being compiled. Western Power has seen consistent improvements in its performance since the first study in 1997. In addition, Western Power commissioned an international benchmarking study in 2000. The competitive performance of Generation, Transmission and Distribution was assessed which showed substantial gains in efficiencies of the three areas since 1995. A number of functional areas were reported to be operating near best practice. Additional studies are not planned as part of the disaggregation of Western Power as they are a normal part of doing business for several of the business units. (5) Western Power and other organisations provide data to the Office of Energy which publishes energy supply and demand information in the publication "Energy Western Australia". Similar data is also used by used by the Australian Bureau of Agriculture and Resource Economics (ABARE) to report on energy intensity trends in Australia. A major study on energy intensity trends in Australia has recently been commissioned by a Ministerial Council on Energy Working Group. This is available from the ABARE website. Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
Western Power also participates in the 'International Transmission Operations and Maintenance Survey' (ITOMS), which is conducted every second year. The most recent study results are currently being compiled. Western Power has seen consistent improvements in its performance since the first study in 1997. In addition, Western Power commissioned an international benchmarking study in 2000. The competitive performance of Generation, Transmission and Distribution was assessed which showed substantial gains in efficiencies of the three areas since 1995. A number of functional areas were reported to be operating near best practice. Additional studies are not planned as part of the disaggregation of Western Power as they are a normal part of doing business for several of the business units. (5) Western Power and other organisations provide data to the Office of Energy which publishes energy supply and demand information in the publication "Energy Western Australia". Similar data is also used by used by the Australian Bureau of Agriculture and Resource Economics (ABARE) to report on energy intensity trends in Australia. A major study on energy intensity trends in Australia has recently been commissioned by a Ministerial Council on Energy Working Group. This is available from the ABARE website. Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
In addition, Western Power commissioned an international benchmarking study in 2000. The competitive performance of Generation, Transmission and Distribution was assessed which showed substantial gains in efficiencies of the three areas since 1995. A number of functional areas were reported to be operating near best practice. Additional studies are not planned as part of the disaggregation of Western Power as they are a normal part of doing business for several of the business units. (5) Western Power and other organisations provide data to the Office of Energy which publishes energy supply and demand information in the publication "Energy Western Australia". Similar data is also used by used by the Australian Bureau of Agriculture and Resource Economics (ABARE) to report on energy intensity trends in Australia. A major study on energy intensity trends in Australia has recently been commissioned by a Ministerial Council on Energy Working Group. This is available from the ABARE website. Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
Additional studies are not planned as part of the disaggregation of Western Power as they are a normal part of doing business for several of the business units. (5) Western Power and other organisations provide data to the Office of Energy which publishes energy supply and demand information in the publication "Energy Western Australia". Similar data is also used by used by the Australian Bureau of Agriculture and Resource Economics (ABARE) to report on energy intensity trends in Australia. A major study on energy intensity trends in Australia has recently been commissioned by a Ministerial Council on Energy Working Group. This is available from the ABARE website. Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
(5) Western Power and other organisations provide data to the Office of Energy which publishes energy supply and demand information in the publication "Energy Western Australia". Similar data is also used by used by the Australian Bureau of Agriculture and Resource Economics (ABARE) to report on energy intensity trends in Australia. A major study on energy intensity trends in Australia has recently been commissioned by a Ministerial Council on Energy Working Group. This is available from the ABARE website. Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
A major study on energy intensity trends in Australia has recently been commissioned by a Ministerial Council on Energy Working Group. This is available from the ABARE website. Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
Various other studies have also been undertaken which benchmark energy intensity in various sectors in Western Australia. (6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
(6) Western Power is not the most appropriate organisation to undertake these types of studies as it is a commercially focussed supplier of electricity. (7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
(7) The Government is aware of a number of demand management initiatives that were undertaken in the USA to defer the need to install new generation capacity. These initiatives have had some success, however other factors such as slowing in economic growth and the importing of electricity from other regions may also have contributed to long term deferral of new generation capacity. Demand management initiatives have also proven highly effective in California in recent years. The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
The Government recognises the potential for demand management in Western Australia. Examples already in place in Western Australia include curtailable load and interruptible load programs operated by Western Power and the energy efficiency programs operated by the Sustainable Energy Development Office. Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.
Demand management is also an important part of the electricity reform process. The market design allows demand management to compete in the market in the same way generation does. Demand management will also be able to be used as an alternative to generation capacity, reducing the need for new generation investment.

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