Dr. Steve Thomas questions the Energy Minister regarding Synergy's significant operating surplus increase and the renegotiation of gas and coal contracts, particularly concerning the reversal of a substantial impairment. The response provides limited detail, citing commercial confidentiality.

AnsweredQoN 1211Legislative Council
Asked
16 October 2024
Portfolio
Energy

QuestionView source ↗

SYNERGY —
OPERATING SURPLUS
1211. Hon Dr STEVE THOMAS to the parliamentary secretary
representing the Minister for Energy:
I refer to the $1.3 billion public
non-financial corporations operating surplus in 2023–24, which is $949 million
higher than estimated in the 2024–25 state budget.
(1) What were the
favourable movements in the onerous $773.7 million booked impairment within the
Synergy gas and coal contracts that facilitated this stunning financial
reversal?
(2) What parties
as at 15 October 2024 were contracted to these now reversed favourable
movements—which are new parties, which are former parties and what
parties have been contractually discontinued?
(3) Since 21 September
2023, what coal and gas contract renegotiations in price and volume has Synergy
undertaken and on whose imprimatur or directive?

AnswerView source ↗

I thank the honourable member for
some notice of the question. On behalf of the Minister for Energy, I provide
the following answer.
(1) The movements
are due to renegotiation of onerous contracts and changes in assumptions
underpinning the contracts.
(2) Synergy is unable to name parties
due to non-disclosure clauses in contracts.
(3) Contracts are negotiated to meet
the organisation's commercial requirements.

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