❓ Mr. Catania questions Horizon Power's tariff increases despite government commitments to freeze fees during COVID-19. The Minister confirms the increases are pre-existing and addresses support for small businesses and charities.
AnsweredQoN 585Legislative Assembly
QuestionView source ↗
HORIZON POWER —
TARIFFS
585. Mr V.A. CATANIA to the Minister for Energy:
I refer to the state government's
commitment to freeze increases on household fees and charges in response to
COVID-19 and subsequent calls from the state government for local governments
to freeze rates and other charges this financial year.
(1) Can the
minister confirm that Horizon Power has increased local government streetlight
tariffs by 10.6 per cent?
(2) Has Horizon
Power increased any other tariffs on small businesses, not-for-profit
organisations and charities, including crisis accommodation, this financial
year; and, if so, for what reason?
TARIFFS
585. Mr V.A. CATANIA to the Minister for Energy:
I refer to the state government's
commitment to freeze increases on household fees and charges in response to
COVID-19 and subsequent calls from the state government for local governments
to freeze rates and other charges this financial year.
(1) Can the
minister confirm that Horizon Power has increased local government streetlight
tariffs by 10.6 per cent?
(2) Has Horizon
Power increased any other tariffs on small businesses, not-for-profit
organisations and charities, including crisis accommodation, this financial
year; and, if so, for what reason?
AnswerView source ↗
(1)–(2) Yes.
Horizon Power has increased streetlight charges for its area of operation by
that figure, and that is because it is transitioning to be cost reflective.
That was announced a long time ago, because it was announced when the Treasurer
was still the Minister for Energy. It is simply rolling out a pre-existing
decision; it is not a new decision and has been reflected in the budget papers
for quite some time.
In respect of the other tariffs for
business for Horizon or Synergy, there are, of course, two separate groups to those. The first are those that are in the
deregulated space. Of course, they change over time, but they are benchmarks and not an actual tariff. They are in the contestable market, so if
people do not want to pay Synergy or
Horizon, they are able to do other things. In respect of the regulated tariffs,
the government has given $2 500 to every business on a regulated tariff.
For Horizon, the L2 tariff, for example, is for small businesses, and I cannot
remember the name of the charity rate. We have given them $2 500.
Mr V.A. Catania : Now you're
increasing their prices.
Mr W.J. JOHNSTON : No. Think
about it, member. What we have done is we have given them a $2 5000 offset. It
is true that there has been a small increase in the regulated tariff, which, of
course, is a cost-reflective tariff—not for Horizon customers, of
course; only for Synergy customers. Horizon customers, of course, have a significant
embedded subsidy because we have a uniform tariff policy.
Yes, the tariff has increased, but
nobody is paying it because they have not yet worked off their $2 500 credit.
Think about it, member. They got $2 500.
Mr V.A. Catania : Not
everybody can get that $2 500.
Mr W.J. JOHNSTON : No.
Everybody on the regulated tariff has it. Every single business and every
single charity on the regulated tariff has received a $2 500 offset without
exception.
Horizon Power has increased streetlight charges for its area of operation by
that figure, and that is because it is transitioning to be cost reflective.
That was announced a long time ago, because it was announced when the Treasurer
was still the Minister for Energy. It is simply rolling out a pre-existing
decision; it is not a new decision and has been reflected in the budget papers
for quite some time.
In respect of the other tariffs for
business for Horizon or Synergy, there are, of course, two separate groups to those. The first are those that are in the
deregulated space. Of course, they change over time, but they are benchmarks and not an actual tariff. They are in the contestable market, so if
people do not want to pay Synergy or
Horizon, they are able to do other things. In respect of the regulated tariffs,
the government has given $2 500 to every business on a regulated tariff.
For Horizon, the L2 tariff, for example, is for small businesses, and I cannot
remember the name of the charity rate. We have given them $2 500.
Mr V.A. Catania : Now you're
increasing their prices.
Mr W.J. JOHNSTON : No. Think
about it, member. What we have done is we have given them a $2 5000 offset. It
is true that there has been a small increase in the regulated tariff, which, of
course, is a cost-reflective tariff—not for Horizon customers, of
course; only for Synergy customers. Horizon customers, of course, have a significant
embedded subsidy because we have a uniform tariff policy.
Yes, the tariff has increased, but
nobody is paying it because they have not yet worked off their $2 500 credit.
Think about it, member. They got $2 500.
Mr V.A. Catania : Not
everybody can get that $2 500.
Mr W.J. JOHNSTON : No.
Everybody on the regulated tariff has it. Every single business and every
single charity on the regulated tariff has received a $2 500 offset without
exception.
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