Hon. Rod Caddies questions the Minister for Energy and Decarbonisation regarding Synergy's A1 residential tariff, its cost reflectivity, and the impact of the energy transition on Synergy's operating subsidies. The Minister acknowledges the tariff is below cost and states renewable energy will minimise subsidy impact.

AnsweredQoN 688Legislative Council
Asked
10 September 2025
Portfolio
Energy and Decarbonisation

QuestionView source ↗

Synergy—A1 residential tariff
688. Hon Rod Caddies to
the Leader of the House representing the Minister for Energy and
Decarbonisation:
I refer to the
Synergy Al residential tariff.
(1) What would the A1 tariff need to be set at to
be cost reflective, based on the most recently available data?
(2) Will the cost of WA's energy transition result
in increased operating subsidies being paid to Synergy by the state government?

AnswerView source ↗

I thank the
honourable member for some notice of the question. On behalf of the Leader of the
House, I provide the following response provided by the Minister for Energy and
Decarbonisation.
(1)
The decision to increase the Al residential electricity tariff by 2.5%—less
than the forecast growth of the consumer price index of 2.75%—in 2025–26
results in the tariff remaining below the cost of supply in 2025–26,
with an estimated cost recovery rate of 78%.
(2)
Synergy's current subsidy reflects Synergy's current cost to generate
electricity with its inefficient thermal generation fleet. Least-cost energy
system modelling indicates that renewable generation, firmed by battery storage
and gas generation, is the most efficient way to replace energy produced by
coal generation while also supporting future demand growth. This will minimise
the impact of the energy transformation on Synergy's operating subsidy.

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