Mr. Day questions the funding of electricity cross-subsidies for rural customers, while Mr. Ripper responds by deferring to an upcoming electricity task force and affirming the government's commitment to maintaining uniform tariffs through cross-subsidies.

AnsweredQoN 232Legislative Assembly
Asked
7 August 2001
Member
Portfolio
Energy

QuestionView source ↗

ELECTRICITY, COST PER UNIT
The minister appears to be saying that there will not be any increase in the electricity cost per unit for customers - although he has not been explicit. How does the minister propose to fund the approximately $150 million in cross-subsidies that currently exist for rural and regional customers? Mr RIPPER

AnswerView source ↗

I have already indicated that an electricity task force will be appointed to provide recommendations on all of these issues. One of its terms of reference will be the maintenance of the uniform tariff, and the best way to proceed with that. The electricity system currently provides the funds for the maintenance of uniform tariffs through cross-subsidies. I see no reason, in principle, that the electricity system should not continue in future to provide funds to support the safety net that I want to remain in place, so that customers who do not benefit from competition will be protected.
Mr RIPPER replied: I have already indicated that an electricity task force will be appointed to provide recommendations on all of these issues. One of its terms of reference will be the maintenance of the uniform tariff, and the best way to proceed with that. The electricity system currently provides the funds for the maintenance of uniform tariffs through cross-subsidies. I see no reason, in principle, that the electricity system should not continue in future to provide funds to support the safety net that I want to remain in place, so that customers who do not benefit from competition will be protected.
I have already indicated that an electricity task force will be appointed to provide recommendations on all of these issues. One of its terms of reference will be the maintenance of the uniform tariff, and the best way to proceed with that. The electricity system currently provides the funds for the maintenance of uniform tariffs through cross-subsidies. I see no reason, in principle, that the electricity system should not continue in future to provide funds to support the safety net that I want to remain in place, so that customers who do not benefit from competition will be protected.

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