❓ The question asks for a guarantee that electricity prices in WA won't increase after the break-up of Western Power, referencing price increases in South Australia. The Minister assures that WA's approach is different and will put downward pressure on prices, with a price cap for households.
AnsweredQoN 1294Legislative Assembly
QuestionView source ↗
I refer the minister to a report in today’s edition of The Advertiser in South Australia titled “Power Bills to Rise Again”. It outlines plans for a further five per cent increase in electricity prices in South Australia, in addition to the 25 per cent increase that has already occurred in the past year. Will the minister guarantee that there will be no increase in electricity prices in Western Australia, as has happened in South Australia, following the break-up of Western Power into separate generation, network and retail organisations? Mr E.S. RIPPER
AnswerView source ↗
I am delighted that the member for Darling Range has asked me that question; I could have written it myself. First, South Australia privatised its electricity industry. We are not privatising in Western Australia. Secondly, South Australia introduced full retail contestability straightaway with only one retailer in the market. We are not doing that; we are staging our electricity reform. The legislation before the House does not provide for full retail contestability. That is a potential phase 2 for the Government of the day to determine about 2007. Thirdly, South Australia reformed its market when there was a shortage of generation capacity, and it relied on price signals alone to provide for new investment. Naturally, until the new investment arrives, the price must continue to rise. We are not doing that. We have plans for investment in new capacity in any case. We have a mechanism in the reform program for new capacity that is centrally procured. I can guarantee that there will be downward pressure on electricity prices as a result of the reform. Downward pressure on prices is what reform is about. Downward pressure will also be available to householders, who will, in addition, be protected by a price cap backed by law.
Mr E.S. RIPPER replied: I am delighted that the member for Darling Range has asked me that question; I could have written it myself. First, South Australia privatised its electricity industry. We are not privatising in Western Australia. Secondly, South Australia introduced full retail contestability straightaway with only one retailer in the market. We are not doing that; we are staging our electricity reform. The legislation before the House does not provide for full retail contestability. That is a potential phase 2 for the Government of the day to determine about 2007. Thirdly, South Australia reformed its market when there was a shortage of generation capacity, and it relied on price signals alone to provide for new investment. Naturally, until the new investment arrives, the price must continue to rise. We are not doing that. We have plans for investment in new capacity in any case. We have a mechanism in the reform program for new capacity that is centrally procured. I can guarantee that there will be downward pressure on electricity prices as a result of the reform. Downward pressure on prices is what reform is about. Downward pressure will also be available to householders, who will, in addition, be protected by a price cap backed by law.
I am delighted that the member for Darling Range has asked me that question; I could have written it myself. First, South Australia privatised its electricity industry. We are not privatising in Western Australia. Secondly, South Australia introduced full retail contestability straightaway with only one retailer in the market. We are not doing that; we are staging our electricity reform. The legislation before the House does not provide for full retail contestability. That is a potential phase 2 for the Government of the day to determine about 2007. Thirdly, South Australia reformed its market when there was a shortage of generation capacity, and it relied on price signals alone to provide for new investment. Naturally, until the new investment arrives, the price must continue to rise. We are not doing that. We have plans for investment in new capacity in any case. We have a mechanism in the reform program for new capacity that is centrally procured. I can guarantee that there will be downward pressure on electricity prices as a result of the reform. Downward pressure on prices is what reform is about. Downward pressure will also be available to householders, who will, in addition, be protected by a price cap backed by law.
Mr E.S. RIPPER replied: I am delighted that the member for Darling Range has asked me that question; I could have written it myself. First, South Australia privatised its electricity industry. We are not privatising in Western Australia. Secondly, South Australia introduced full retail contestability straightaway with only one retailer in the market. We are not doing that; we are staging our electricity reform. The legislation before the House does not provide for full retail contestability. That is a potential phase 2 for the Government of the day to determine about 2007. Thirdly, South Australia reformed its market when there was a shortage of generation capacity, and it relied on price signals alone to provide for new investment. Naturally, until the new investment arrives, the price must continue to rise. We are not doing that. We have plans for investment in new capacity in any case. We have a mechanism in the reform program for new capacity that is centrally procured. I can guarantee that there will be downward pressure on electricity prices as a result of the reform. Downward pressure on prices is what reform is about. Downward pressure will also be available to householders, who will, in addition, be protected by a price cap backed by law.
I am delighted that the member for Darling Range has asked me that question; I could have written it myself. First, South Australia privatised its electricity industry. We are not privatising in Western Australia. Secondly, South Australia introduced full retail contestability straightaway with only one retailer in the market. We are not doing that; we are staging our electricity reform. The legislation before the House does not provide for full retail contestability. That is a potential phase 2 for the Government of the day to determine about 2007. Thirdly, South Australia reformed its market when there was a shortage of generation capacity, and it relied on price signals alone to provide for new investment. Naturally, until the new investment arrives, the price must continue to rise. We are not doing that. We have plans for investment in new capacity in any case. We have a mechanism in the reform program for new capacity that is centrally procured. I can guarantee that there will be downward pressure on electricity prices as a result of the reform. Downward pressure on prices is what reform is about. Downward pressure will also be available to householders, who will, in addition, be protected by a price cap backed by law.
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