Hon Kate Doust asks whether the Minister consulted with energy industry stakeholders regarding the recommissioning of Muja A and B power station. Hon Peter Collier's answer focuses on Verve Energy's tender process and commercial negotiations, without directly addressing stakeholder consultation.

AnsweredQoN 506Legislative Council
Asked
14 May 2009
Portfolio
Energy

QuestionView source ↗

muja a and b power station — recommissioning
I refer to the government’s announcement regarding the Muja A and B power station. Did the minister consult with energy industry stakeholders regarding the recommissioning of Muja A and B; and, if yes, will the minister give details of the parties with whom he consulted? Hon PETER COLLIER

AnswerView source ↗

I thank the honourable member for the question. As I said yesterday, Verve Energy is a statutory corporation and it is up to Verve to act in the commercial world regarding generational capacity. The board and Verve made a decision about the recommissioning of Muja A and B power station. Verve put it out to tender and received 10 expressions of interest. The raft of options for Muja A and B ranged from peak, mid-merit or baseload. An external probity auditor oversaw the lengthy process, which gradually got to the point at which there were two bidders. That process commenced in March 2007 under the former government and the tender process did not conclude until November last year. There is now a preferred bidder. The second bidder that missed out is now on stand-by. The negotiations between Verve and the preferred bidder remain confidential between Verve, its board and the preferred bidder. Those commercial negotiations are continuing. I will not make any comments on the joint venture until those negotiations are completed. As I said, the process commenced under the previous government and continued under this government. It was all done appropriately and above board with the intent to ensure that the Muja A and B power station was used effectively as a power generation source.
Hon PETER COLLIER replied: I thank the honourable member for the question. As I said yesterday, Verve Energy is a statutory corporation and it is up to Verve to act in the commercial world regarding generational capacity. The board and Verve made a decision about the recommissioning of Muja A and B power station. Verve put it out to tender and received 10 expressions of interest. The raft of options for Muja A and B ranged from peak, mid-merit or baseload. An external probity auditor oversaw the lengthy process, which gradually got to the point at which there were two bidders. That process commenced in March 2007 under the former government and the tender process did not conclude until November last year. There is now a preferred bidder. The second bidder that missed out is now on stand-by. The negotiations between Verve and the preferred bidder remain confidential between Verve, its board and the preferred bidder. Those commercial negotiations are continuing. I will not make any comments on the joint venture until those negotiations are completed. As I said, the process commenced under the previous government and continued under this government. It was all done appropriately and above board with the intent to ensure that the Muja A and B power station was used effectively as a power generation source.
I thank the honourable member for the question. As I said yesterday, Verve Energy is a statutory corporation and it is up to Verve to act in the commercial world regarding generational capacity. The board and Verve made a decision about the recommissioning of Muja A and B power station. Verve put it out to tender and received 10 expressions of interest. The raft of options for Muja A and B ranged from peak, mid-merit or baseload. An external probity auditor oversaw the lengthy process, which gradually got to the point at which there were two bidders. That process commenced in March 2007 under the former government and the tender process did not conclude until November last year. There is now a preferred bidder. The second bidder that missed out is now on stand-by. The negotiations between Verve and the preferred bidder remain confidential between Verve, its board and the preferred bidder. Those commercial negotiations are continuing. I will not make any comments on the joint venture until those negotiations are completed. As I said, the process commenced under the previous government and continued under this government. It was all done appropriately and above board with the intent to ensure that the Muja A and B power station was used effectively as a power generation source.

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