Mr. Redman questions the Minister for Energy about power capacity issues hindering regional growth and seeks support for a regional power improvement program. The Minister acknowledges the 'fringe-of-grid' problem, attributing it to coastal population growth and criticizes developer reliance on government funding for infrastructure.

AnsweredQoN 949Legislative Assembly
Asked
11 December 2006
Portfolio
Energy

QuestionView source ↗

ELECTRICITY SUPPLY - REGIONAL AREAS
I refer to recent concerns that the lack of power capacity in key regional centres is effectively stymieing regional growth and development. (1) Would the minister support a regional power capacity improvement program following the same principles as the successful rural power improvement program that targeted reliability in regional centres? (2) Does the minister expect that regional users will get extra capacity only on a user-pays basis and not have access to community service obligation support from the government? (3) What does the minister say to the regional wealth-creating areas of the state that have contributed so much to the government’s coffers, yet must put up with second-rate essential services? Mr F.M. LOGAN

AnswerView source ↗

(1)-(3) I thank the member for Stirling for his question. The member is basically referring to fringe-of-grid problems. He did not mention the places by name, but obviously he is referring to Walpole and Denmark, which have been mentioned in the media. Bremer Bay and Hopetoun could be added to the list. The fringe-of-grid problem has affected transmission for many years; indeed, it has been a problem beyond the term of our government and right the way through the Liberal opposition’s term of government. The fringe-of-grid problem has resulted from the massive explosion of people who are moving to coastal areas because they are driven by the need for a sea change or by the housing developments that are taking place in those areas. This problem can be resolved in a number of ways. I have already spoken about those solutions in the media; however, I will now explain them to the house. The first solution - I have been advised by Western Power - is to make technical modifications to the line in Denmark and Walpole to carry more energy into that area. I am not fully aware whether that is a suitable option or whether it will provide enough energy to resolve the issues in the Denmark-Walpole area, particularly given the developments that are due to take place in those areas. That is one method of addressing the issue. The second method is to plan for transmission lines over a longer period and in a better and more cohesive way. There is no point in regional shires giving approvals for developments when there is no infrastructure to make those developments successful. That is what is happening. Developers want to cash in on the high land prices that are being achieved in these areas. After approvals have been given, developers are asking the state government to pay for the infrastructure. That is not good enough and it is inappropriate. I have said the same thing to the shire representatives who have approached me about this issue. In the same way that we as a state must plan for the long term, councils and developers must plan for the long term. They must work closely with Western Power networks and the Department for Planning and Infrastructure to plan for not only current demand, but also where they want to be in 10 or 20 years. They must also plan for what size development they want. When the development in those areas takes place, the developers must decide whether they want a user-pays approach. They cannot expect the state government to fork out hundreds of millions of dollars so that they can make a fast buck in the fringe-of-grid areas; they cannot expect to walk away with that cash in their pockets when every other taxpayer pays for electricity. That is exactly what is happening. If developers want their developments to take place, they must consider how much power they want and how much they are willing to contribute to the development of that power.
(1) Would the minister support a regional power capacity improvement program following the same principles as the successful rural power improvement program that targeted reliability in regional centres? (2) Does the minister expect that regional users will get extra capacity only on a user-pays basis and not have access to community service obligation support from the government? (3) What does the minister say to the regional wealth-creating areas of the state that have contributed so much to the government’s coffers, yet must put up with second-rate essential services? Mr F.M. LOGAN replied: (1)-(3) I thank the member for Stirling for his question. The member is basically referring to fringe-of-grid problems. He did not mention the places by name, but obviously he is referring to Walpole and Denmark, which have been mentioned in the media. Bremer Bay and Hopetoun could be added to the list. The fringe-of-grid problem has affected transmission for many years; indeed, it has been a problem beyond the term of our government and right the way through the Liberal opposition’s term of government. The fringe-of-grid problem has resulted from the massive explosion of people who are moving to coastal areas because they are driven by the need for a sea change or by the housing developments that are taking place in those areas. This problem can be resolved in a number of ways. I have already spoken about those solutions in the media; however, I will now explain them to the house. The first solution - I have been advised by Western Power - is to make technical modifications to the line in Denmark and Walpole to carry more energy into that area. I am not fully aware whether that is a suitable option or whether it will provide enough energy to resolve the issues in the Denmark-Walpole area, particularly given the developments that are due to take place in those areas. That is one method of addressing the issue. The second method is to plan for transmission lines over a longer period and in a better and more cohesive way. There is no point in regional shires giving approvals for developments when there is no infrastructure to make those developments successful. That is what is happening. Developers want to cash in on the high land prices that are being achieved in these areas. After approvals have been given, developers are asking the state government to pay for the infrastructure. That is not good enough and it is inappropriate. I have said the same thing to the shire representatives who have approached me about this issue. In the same way that we as a state must plan for the long term, councils and developers must plan for the long term. They must work closely with Western Power networks and the Department for Planning and Infrastructure to plan for not only current demand, but also where they want to be in 10 or 20 years. They must also plan for what size development they want. When the development in those areas takes place, the developers must decide whether they want a user-pays approach. They cannot expect the state government to fork out hundreds of millions of dollars so that they can make a fast buck in the fringe-of-grid areas; they cannot expect to walk away with that cash in their pockets when every other taxpayer pays for electricity. That is exactly what is happening. If developers want their developments to take place, they must consider how much power they want and how much they are willing to contribute to the development of that power.
(2) Does the minister expect that regional users will get extra capacity only on a user-pays basis and not have access to community service obligation support from the government? (3) What does the minister say to the regional wealth-creating areas of the state that have contributed so much to the government’s coffers, yet must put up with second-rate essential services? Mr F.M. LOGAN replied: (1)-(3) I thank the member for Stirling for his question. The member is basically referring to fringe-of-grid problems. He did not mention the places by name, but obviously he is referring to Walpole and Denmark, which have been mentioned in the media. Bremer Bay and Hopetoun could be added to the list. The fringe-of-grid problem has affected transmission for many years; indeed, it has been a problem beyond the term of our government and right the way through the Liberal opposition’s term of government. The fringe-of-grid problem has resulted from the massive explosion of people who are moving to coastal areas because they are driven by the need for a sea change or by the housing developments that are taking place in those areas. This problem can be resolved in a number of ways. I have already spoken about those solutions in the media; however, I will now explain them to the house. The first solution - I have been advised by Western Power - is to make technical modifications to the line in Denmark and Walpole to carry more energy into that area. I am not fully aware whether that is a suitable option or whether it will provide enough energy to resolve the issues in the Denmark-Walpole area, particularly given the developments that are due to take place in those areas. That is one method of addressing the issue. The second method is to plan for transmission lines over a longer period and in a better and more cohesive way. There is no point in regional shires giving approvals for developments when there is no infrastructure to make those developments successful. That is what is happening. Developers want to cash in on the high land prices that are being achieved in these areas. After approvals have been given, developers are asking the state government to pay for the infrastructure. That is not good enough and it is inappropriate. I have said the same thing to the shire representatives who have approached me about this issue. In the same way that we as a state must plan for the long term, councils and developers must plan for the long term. They must work closely with Western Power networks and the Department for Planning and Infrastructure to plan for not only current demand, but also where they want to be in 10 or 20 years. They must also plan for what size development they want. When the development in those areas takes place, the developers must decide whether they want a user-pays approach. They cannot expect the state government to fork out hundreds of millions of dollars so that they can make a fast buck in the fringe-of-grid areas; they cannot expect to walk away with that cash in their pockets when every other taxpayer pays for electricity. That is exactly what is happening. If developers want their developments to take place, they must consider how much power they want and how much they are willing to contribute to the development of that power.
(3) What does the minister say to the regional wealth-creating areas of the state that have contributed so much to the government’s coffers, yet must put up with second-rate essential services? Mr F.M. LOGAN replied: (1)-(3) I thank the member for Stirling for his question. The member is basically referring to fringe-of-grid problems. He did not mention the places by name, but obviously he is referring to Walpole and Denmark, which have been mentioned in the media. Bremer Bay and Hopetoun could be added to the list. The fringe-of-grid problem has affected transmission for many years; indeed, it has been a problem beyond the term of our government and right the way through the Liberal opposition’s term of government. The fringe-of-grid problem has resulted from the massive explosion of people who are moving to coastal areas because they are driven by the need for a sea change or by the housing developments that are taking place in those areas. This problem can be resolved in a number of ways. I have already spoken about those solutions in the media; however, I will now explain them to the house. The first solution - I have been advised by Western Power - is to make technical modifications to the line in Denmark and Walpole to carry more energy into that area. I am not fully aware whether that is a suitable option or whether it will provide enough energy to resolve the issues in the Denmark-Walpole area, particularly given the developments that are due to take place in those areas. That is one method of addressing the issue. The second method is to plan for transmission lines over a longer period and in a better and more cohesive way. There is no point in regional shires giving approvals for developments when there is no infrastructure to make those developments successful. That is what is happening. Developers want to cash in on the high land prices that are being achieved in these areas. After approvals have been given, developers are asking the state government to pay for the infrastructure. That is not good enough and it is inappropriate. I have said the same thing to the shire representatives who have approached me about this issue. In the same way that we as a state must plan for the long term, councils and developers must plan for the long term. They must work closely with Western Power networks and the Department for Planning and Infrastructure to plan for not only current demand, but also where they want to be in 10 or 20 years. They must also plan for what size development they want. When the development in those areas takes place, the developers must decide whether they want a user-pays approach. They cannot expect the state government to fork out hundreds of millions of dollars so that they can make a fast buck in the fringe-of-grid areas; they cannot expect to walk away with that cash in their pockets when every other taxpayer pays for electricity. That is exactly what is happening. If developers want their developments to take place, they must consider how much power they want and how much they are willing to contribute to the development of that power.
Mr F.M. LOGAN replied: (1)-(3) I thank the member for Stirling for his question. The member is basically referring to fringe-of-grid problems. He did not mention the places by name, but obviously he is referring to Walpole and Denmark, which have been mentioned in the media. Bremer Bay and Hopetoun could be added to the list. The fringe-of-grid problem has affected transmission for many years; indeed, it has been a problem beyond the term of our government and right the way through the Liberal opposition’s term of government. The fringe-of-grid problem has resulted from the massive explosion of people who are moving to coastal areas because they are driven by the need for a sea change or by the housing developments that are taking place in those areas. This problem can be resolved in a number of ways. I have already spoken about those solutions in the media; however, I will now explain them to the house. The first solution - I have been advised by Western Power - is to make technical modifications to the line in Denmark and Walpole to carry more energy into that area. I am not fully aware whether that is a suitable option or whether it will provide enough energy to resolve the issues in the Denmark-Walpole area, particularly given the developments that are due to take place in those areas. That is one method of addressing the issue. The second method is to plan for transmission lines over a longer period and in a better and more cohesive way. There is no point in regional shires giving approvals for developments when there is no infrastructure to make those developments successful. That is what is happening. Developers want to cash in on the high land prices that are being achieved in these areas. After approvals have been given, developers are asking the state government to pay for the infrastructure. That is not good enough and it is inappropriate. I have said the same thing to the shire representatives who have approached me about this issue. In the same way that we as a state must plan for the long term, councils and developers must plan for the long term. They must work closely with Western Power networks and the Department for Planning and Infrastructure to plan for not only current demand, but also where they want to be in 10 or 20 years. They must also plan for what size development they want. When the development in those areas takes place, the developers must decide whether they want a user-pays approach. They cannot expect the state government to fork out hundreds of millions of dollars so that they can make a fast buck in the fringe-of-grid areas; they cannot expect to walk away with that cash in their pockets when every other taxpayer pays for electricity. That is exactly what is happening. If developers want their developments to take place, they must consider how much power they want and how much they are willing to contribute to the development of that power.
(1)-(3) I thank the member for Stirling for his question. The member is basically referring to fringe-of-grid problems. He did not mention the places by name, but obviously he is referring to Walpole and Denmark, which have been mentioned in the media. Bremer Bay and Hopetoun could be added to the list. The fringe-of-grid problem has affected transmission for many years; indeed, it has been a problem beyond the term of our government and right the way through the Liberal opposition’s term of government. The fringe-of-grid problem has resulted from the massive explosion of people who are moving to coastal areas because they are driven by the need for a sea change or by the housing developments that are taking place in those areas. This problem can be resolved in a number of ways. I have already spoken about those solutions in the media; however, I will now explain them to the house. The first solution - I have been advised by Western Power - is to make technical modifications to the line in Denmark and Walpole to carry more energy into that area. I am not fully aware whether that is a suitable option or whether it will provide enough energy to resolve the issues in the Denmark-Walpole area, particularly given the developments that are due to take place in those areas. That is one method of addressing the issue. The second method is to plan for transmission lines over a longer period and in a better and more cohesive way. There is no point in regional shires giving approvals for developments when there is no infrastructure to make those developments successful. That is what is happening. Developers want to cash in on the high land prices that are being achieved in these areas. After approvals have been given, developers are asking the state government to pay for the infrastructure. That is not good enough and it is inappropriate. I have said the same thing to the shire representatives who have approached me about this issue. In the same way that we as a state must plan for the long term, councils and developers must plan for the long term. They must work closely with Western Power networks and the Department for Planning and Infrastructure to plan for not only current demand, but also where they want to be in 10 or 20 years. They must also plan for what size development they want. When the development in those areas takes place, the developers must decide whether they want a user-pays approach. They cannot expect the state government to fork out hundreds of millions of dollars so that they can make a fast buck in the fringe-of-grid areas; they cannot expect to walk away with that cash in their pockets when every other taxpayer pays for electricity. That is exactly what is happening. If developers want their developments to take place, they must consider how much power they want and how much they are willing to contribute to the development of that power.

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