❓ Hon. Charles Smith questions the Premier regarding WA's domestic gas reservation policy, its impact on electricity prices, and the potential implications of a gas pipeline to the east coast. The Premier denies a direct link between gas prices and electricity costs and rejects the pipeline idea.
AnsweredQoN 507Legislative Council
QuestionView source ↗
DOMESTIC GAS RESERVATION
POLICY
507. Hon CHARLES SMITH to the Leader of the House
representing the Premier:
I refer to the article published
today by former Premier Hon Colin Barnett regarding Western Australia's
gas reservation policy.
(1) Although the
current gas reservation policy provides for gas prices to be determined by the
market, does the Premier concede that gas prices primarily dictate electricity
costs?
(2) Does Western Australia's
reservation policy have a cap price?
(3) If yes to (2), what is the
price?
(4) Is the government entertaining
the idea of a gas pipeline from the west coast to the east?
(5) Does the
government concede that such a policy would rely entirely upon WA sustaining a domestic
gas reservation policy that then has to cover demand for the entire continent?
(6) Does the
government concede that a likely outcome of such a policy would be that WA gas
suppliers will then privilege export customers and use the pipeline to break
the WA reservation, thus lifting the domestic price in WA?
POLICY
507. Hon CHARLES SMITH to the Leader of the House
representing the Premier:
I refer to the article published
today by former Premier Hon Colin Barnett regarding Western Australia's
gas reservation policy.
(1) Although the
current gas reservation policy provides for gas prices to be determined by the
market, does the Premier concede that gas prices primarily dictate electricity
costs?
(2) Does Western Australia's
reservation policy have a cap price?
(3) If yes to (2), what is the
price?
(4) Is the government entertaining
the idea of a gas pipeline from the west coast to the east?
(5) Does the
government concede that such a policy would rely entirely upon WA sustaining a domestic
gas reservation policy that then has to cover demand for the entire continent?
(6) Does the
government concede that a likely outcome of such a policy would be that WA gas
suppliers will then privilege export customers and use the pipeline to break
the WA reservation, thus lifting the domestic price in WA?
AnswerView source ↗
I thank the honourable
member for some notice of the question.
(1) No. There are
numerous factors that determine the final cost of delivering electricity to
consumers.
(2) No.
(3) Not applicable.
(4) No.
(5) Yes.
(6) The gas
reservation policy is designed to ensure supply for WA. This government will
not allow it to be undermined by any such pipeline.
member for some notice of the question.
(1) No. There are
numerous factors that determine the final cost of delivering electricity to
consumers.
(2) No.
(3) Not applicable.
(4) No.
(5) Yes.
(6) The gas
reservation policy is designed to ensure supply for WA. This government will
not allow it to be undermined by any such pipeline.
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