❓ Dr. Thomas questions the Energy Minister about a $780 million electricity subsidy, specifically regarding its allocation to private providers versus Verve Energy. The Minister's response avoids direct answers, focusing on past underinvestment and future tariff increases.
AnsweredQoN 171Legislative Assembly
QuestionView source ↗
VERVE ENERGY — SUBSIDY
I refer to the minister’s answer to my question yesterday about the $780 million apparent subsidy for electricity consumers and his confirmation that private providers will be able to access some of that $780 million subsidy if they sell power to Synergy cheaper than the cost at which they produce it. (1) Are any private generation providers currently providing power to Synergy at less than the cost of production to them; and, if so, who are they? (2) If there is none, will the entire $780 million be, in effect, a subsidy to Verve Energy that is unavailable to private generators? (3) Under either circumstance, how much of the payment will be passed on to Verve Energy, how much will go to Western Power’s network and how much will be retained by Synergy? Mr F.M. LOGAN
I refer to the minister’s answer to my question yesterday about the $780 million apparent subsidy for electricity consumers and his confirmation that private providers will be able to access some of that $780 million subsidy if they sell power to Synergy cheaper than the cost at which they produce it. (1) Are any private generation providers currently providing power to Synergy at less than the cost of production to them; and, if so, who are they? (2) If there is none, will the entire $780 million be, in effect, a subsidy to Verve Energy that is unavailable to private generators? (3) Under either circumstance, how much of the payment will be passed on to Verve Energy, how much will go to Western Power’s network and how much will be retained by Synergy? Mr F.M. LOGAN
AnswerView source ↗
I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
(1) Are any private generation providers currently providing power to Synergy at less than the cost of production to them; and, if so, who are they? (2) If there is none, will the entire $780 million be, in effect, a subsidy to Verve Energy that is unavailable to private generators? (3) Under either circumstance, how much of the payment will be passed on to Verve Energy, how much will go to Western Power’s network and how much will be retained by Synergy? Mr F.M. LOGAN replied: I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
(2) If there is none, will the entire $780 million be, in effect, a subsidy to Verve Energy that is unavailable to private generators? (3) Under either circumstance, how much of the payment will be passed on to Verve Energy, how much will go to Western Power’s network and how much will be retained by Synergy? Mr F.M. LOGAN replied: I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
(3) Under either circumstance, how much of the payment will be passed on to Verve Energy, how much will go to Western Power’s network and how much will be retained by Synergy? Mr F.M. LOGAN replied: I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN replied: I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
(1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
(1) Are any private generation providers currently providing power to Synergy at less than the cost of production to them; and, if so, who are they? (2) If there is none, will the entire $780 million be, in effect, a subsidy to Verve Energy that is unavailable to private generators? (3) Under either circumstance, how much of the payment will be passed on to Verve Energy, how much will go to Western Power’s network and how much will be retained by Synergy? Mr F.M. LOGAN replied: I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
(2) If there is none, will the entire $780 million be, in effect, a subsidy to Verve Energy that is unavailable to private generators? (3) Under either circumstance, how much of the payment will be passed on to Verve Energy, how much will go to Western Power’s network and how much will be retained by Synergy? Mr F.M. LOGAN replied: I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
(3) Under either circumstance, how much of the payment will be passed on to Verve Energy, how much will go to Western Power’s network and how much will be retained by Synergy? Mr F.M. LOGAN replied: I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN replied: I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
I thank the member for the question and I will go through it again. Obviously, he did not understand my answer yesterday. Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Dr S.C. Thomas : You didn’t answer it yesterday. Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : No, the member did not understand it. Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Dr S.C. Thomas : You didn’t answer it. The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : Order, members! Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : I went through the issue very slowly for the member yesterday so that he could understand it. (1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
(1)-(3) Let us go back. What is the issue with Verve? With Verve, as a power generator, we have a history of underinvestment, we have massive increases in input costs and we have frozen tariffs. I went through it yesterday in great detail. That is the issue. It is as simple as that. There has been underinvestment in maintenance and upgrades, massive increases in energy input costs and frozen tariffs. Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Several members interjected. The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : I call the member for Roe to order. Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : The massive increases in input costs have been caused by increases in the price of gas, oil, materials and labour. Therefore, Verve’s income does not match the cost of generating power. Verve is moving to cost-reflective tariffs, which is what the government is going to do. The Premier announced on Friday that the first increase in the move towards cost-reflective tariffs will be at a rate of 10 per cent in July 2009. Members opposite have been on the record on numerous occasions in this house calling for the government to tell the people of Western Australia well before the election how much electricity prices will go up by, and we have done that. Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Dr S.C. Thomas : That is not today’s question though. Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : No, I know. In conjunction with the move to cost-reflective tariffs, we are also making those organisations that are in the process of delivering power to homes—whether they be generators, retailers or networks—whole for the delivery of that power to our homes. That is what the $780 million is for. How are we going to distribute the $780 million? The member for Cottesloe has continuously asked what the families of Western Australia will get for this $780 million. What they will get is subsidised electricity from the government. Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr C.J. Barnett : The price is going up, not down. The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : Order, member for Cottesloe! Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : The problem is that — Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr C.J. Barnett interjected. The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : I call the member for Cottesloe to order for the first time. Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : The problem is that the opposition just does not understand the issue. The former Minister for Energy is, unfortunately, badly advising the current frontbench, which is why we get these types of questions. Members opposite should not listen to him. He was the worst Minister for Energy that this state has ever had. Members should not listen to him. That is what the $780 million is for. It is a subsidy to households, to families, in Western Australia. Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr C.J. Barnett : Tell them they’re better off. The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
The SPEAKER : I call the member for Cottesloe to order for the second time. Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : It will be applied through the market mechanism of the retailer, Synergy, keeping the generators whole. Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Dr S.C. Thomas : Which generators? Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
Mr F.M. LOGAN : The largest generator on the grid at the moment is Verve. I presume that Verve will be the major beneficiary of that subsidy.
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