❓ Hon. Norman Moore questions the Minister for Energy about proposed gas tariff increases, focusing on parliamentary approval, the rationale behind the increases, and potential new entrants to the gas retail market. The Minister, Hon. Kim Chance, responds by clarifying that parliamentary approval isn't needed, justifying the price rise with multiple reasons, and naming potential market entrants.
AnsweredQoN 646Legislative Council
QuestionView source ↗
GAS TARIFF — INCREASE
By way of an observation, Mr President, I have been asked to put on notice the questions I mentioned during my speech that I would ask today. I am exaggerating; I have been asked to ask the questions tomorrow because the Minister for Energy is not available today. He is obviously out there trying to solve the problem. I refer the minister to the government’s announcement of increases proposed for gas tariff caps specified under the Energy Coordination (Gas Tariffs) Regulations 2000. (1) Will the proposed changes to domestic gas price regulations require parliamentary approval? (2) If so, why are prices set to rise from 1 July before gaining parliamentary approval? (3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE
By way of an observation, Mr President, I have been asked to put on notice the questions I mentioned during my speech that I would ask today. I am exaggerating; I have been asked to ask the questions tomorrow because the Minister for Energy is not available today. He is obviously out there trying to solve the problem. I refer the minister to the government’s announcement of increases proposed for gas tariff caps specified under the Energy Coordination (Gas Tariffs) Regulations 2000. (1) Will the proposed changes to domestic gas price regulations require parliamentary approval? (2) If so, why are prices set to rise from 1 July before gaining parliamentary approval? (3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE
AnswerView source ↗
I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
I refer the minister to the government’s announcement of increases proposed for gas tariff caps specified under the Energy Coordination (Gas Tariffs) Regulations 2000. (1) Will the proposed changes to domestic gas price regulations require parliamentary approval? (2) If so, why are prices set to rise from 1 July before gaining parliamentary approval? (3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(1) Will the proposed changes to domestic gas price regulations require parliamentary approval? (2) If so, why are prices set to rise from 1 July before gaining parliamentary approval? (3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(2) If so, why are prices set to rise from 1 July before gaining parliamentary approval? (3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
I refer the minister to the government’s announcement of increases proposed for gas tariff caps specified under the Energy Coordination (Gas Tariffs) Regulations 2000. (1) Will the proposed changes to domestic gas price regulations require parliamentary approval? (2) If so, why are prices set to rise from 1 July before gaining parliamentary approval? (3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(1) Will the proposed changes to domestic gas price regulations require parliamentary approval? (2) If so, why are prices set to rise from 1 July before gaining parliamentary approval? (3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(2) If so, why are prices set to rise from 1 July before gaining parliamentary approval? (3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(3) Is the minister aware that the theoretical basis for the recommended price rise is to make domestic gas retailing more profitable as a means of enticing new entrants into the industry? (4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(4) Will the minister indicate which firms, if any, the government expects to enter the gas retail market as a result of the price rise? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(1) No. The gas tariff changes will be implemented via a change to regulations and therefore do not require parliamentary approval. (2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(2) Not applicable. (3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(3) Making gas retail tariffs cost reflective as a means of enticing new entrants into the gas retail market is one of the reasons for the recommended price rise. Other reasons include the fact that tariffs need to be cost reflective to provide sufficient incentives for gas producers to sell gas to the domestic market; for pipeline operators to expand their pipelines so that gas can be transported to the domestic market; and for distribution companies to expand their distribution systems so that gas can be distributed within the domestic market. Essentially, the domestic gas market will not work efficiently and deliver gas to consumers if tariffs are not cost reflective. (4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
(4) There are a number of potential entrants into the Western Australian gas retail market. Synergy is a retailer in the small-use consumer market, but is restricted to selling gas only to customers that consume more than 0.18 terajoules of gas a year. This restriction on Synergy will be lifted when electricity full retail contestability is introduced, but Synergy will have no incentive to sell gas to smaller customers if tariffs are not cost reflective. There are also a number of gas retail companies operating in the eastern states that are potential entrants to the Western Australian market. For example, Victoria has six licensed gas retailers in operation, including three incumbents—AGL Energy, Origin Energy Australia and TRUenergy—and three second-tier retailers—Australian Power and Gas, Simply Energy and Victoria Electricity. Although the government is not aware of any plans for these companies to enter the Western Australian market, cost-reflective tariffs will be a prerequisite for them to do so.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.