❓ A WA parliamentary question probes Western Power's ability to fulfill Community Service Obligations (CSOs) regarding infrastructure in the South West, questioning the need for ministerial direction and CSO payments. The answer clarifies the Minister's powers and the mechanisms for funding CSOs.
AnsweredQoN 1667Legislative Council
QuestionView source ↗
Given there is no provision in
Western Power’s Act
to allow the organisation to fulfil Community Service Obligations (CSO’s) and
Western Power’s Act
does provide for the responsible Minister to direct Western Power to do whatever the Government determines, including CSO’s -
(1) Will the Government as the responsible authority for fulfilling CSOs and ensuring communities be not left with ageing infrastructure, instruct Western Power to fulfil the States CSO to insure essential service infrastructure in the SW of the State?
(2) If no to (1), why not?
(3) Other than the universal tariff obligation and a requirement to maintain/expand coal fired power generation at Collie. Since 1995 how many Ministers have directed the Western Power to fulfil a CSO?
(4) If so to (3), which Ministers under which Government directed Western Power to carry out such a CSO and what were the results?
(5) If none to (3), why not?
Western Power’s Act
to allow the organisation to fulfil Community Service Obligations (CSO’s) and
Western Power’s Act
does provide for the responsible Minister to direct Western Power to do whatever the Government determines, including CSO’s -
(1) Will the Government as the responsible authority for fulfilling CSOs and ensuring communities be not left with ageing infrastructure, instruct Western Power to fulfil the States CSO to insure essential service infrastructure in the SW of the State?
(2) If no to (1), why not?
(3) Other than the universal tariff obligation and a requirement to maintain/expand coal fired power generation at Collie. Since 1995 how many Ministers have directed the Western Power to fulfil a CSO?
(4) If so to (3), which Ministers under which Government directed Western Power to carry out such a CSO and what were the results?
(5) If none to (3), why not?
AnswerView source ↗
Answered
1 April 2004
Responded by
Minister for Local Government and Regional Development representing the Minister for Energy
Response time
30 days
(3) Other than the two examples cited, no Ministerial directions have been given to Western Power since 1995. (4) & (5) The question reflects a misunderstanding of the Minister’s power to direct Western Power and the concept of Community Service Obligations. The Electricity Corporation Act 1994, which established Western Power Corporation, does not 'provide for the responsible Minister to direct Western Power to do whatever the Government determines'. The Act provides for the Minister for Energy to give directions to the corporation only generally with respect to the performance of its functions. The imposition of a Community Service Obligation on a Government Trading Enterprise usually requires the Government to recognise and in some way compensate the cost of the non-commercial activity to the Government Trading Enterprise. It is not necessary to have a specific legislative provision or for the Minister to use his or her legislative direction powers for a Government Trading Enterprise to undertake a Community Service Obligation. This is because in effect the Government is buying the service and the Trading Enterprise’s commercial obligations are not compromised. Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
(4) & (5) The question reflects a misunderstanding of the Minister’s power to direct Western Power and the concept of Community Service Obligations. The Electricity Corporation Act 1994, which established Western Power Corporation, does not 'provide for the responsible Minister to direct Western Power to do whatever the Government determines'. The Act provides for the Minister for Energy to give directions to the corporation only generally with respect to the performance of its functions. The imposition of a Community Service Obligation on a Government Trading Enterprise usually requires the Government to recognise and in some way compensate the cost of the non-commercial activity to the Government Trading Enterprise. It is not necessary to have a specific legislative provision or for the Minister to use his or her legislative direction powers for a Government Trading Enterprise to undertake a Community Service Obligation. This is because in effect the Government is buying the service and the Trading Enterprise’s commercial obligations are not compromised. Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
The Electricity Corporation Act 1994, which established Western Power Corporation, does not 'provide for the responsible Minister to direct Western Power to do whatever the Government determines'. The Act provides for the Minister for Energy to give directions to the corporation only generally with respect to the performance of its functions. The imposition of a Community Service Obligation on a Government Trading Enterprise usually requires the Government to recognise and in some way compensate the cost of the non-commercial activity to the Government Trading Enterprise. It is not necessary to have a specific legislative provision or for the Minister to use his or her legislative direction powers for a Government Trading Enterprise to undertake a Community Service Obligation. This is because in effect the Government is buying the service and the Trading Enterprise’s commercial obligations are not compromised. Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
The imposition of a Community Service Obligation on a Government Trading Enterprise usually requires the Government to recognise and in some way compensate the cost of the non-commercial activity to the Government Trading Enterprise. It is not necessary to have a specific legislative provision or for the Minister to use his or her legislative direction powers for a Government Trading Enterprise to undertake a Community Service Obligation. This is because in effect the Government is buying the service and the Trading Enterprise’s commercial obligations are not compromised. Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
(4) & (5) The question reflects a misunderstanding of the Minister’s power to direct Western Power and the concept of Community Service Obligations. The Electricity Corporation Act 1994, which established Western Power Corporation, does not 'provide for the responsible Minister to direct Western Power to do whatever the Government determines'. The Act provides for the Minister for Energy to give directions to the corporation only generally with respect to the performance of its functions. The imposition of a Community Service Obligation on a Government Trading Enterprise usually requires the Government to recognise and in some way compensate the cost of the non-commercial activity to the Government Trading Enterprise. It is not necessary to have a specific legislative provision or for the Minister to use his or her legislative direction powers for a Government Trading Enterprise to undertake a Community Service Obligation. This is because in effect the Government is buying the service and the Trading Enterprise’s commercial obligations are not compromised. Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
The Electricity Corporation Act 1994, which established Western Power Corporation, does not 'provide for the responsible Minister to direct Western Power to do whatever the Government determines'. The Act provides for the Minister for Energy to give directions to the corporation only generally with respect to the performance of its functions. The imposition of a Community Service Obligation on a Government Trading Enterprise usually requires the Government to recognise and in some way compensate the cost of the non-commercial activity to the Government Trading Enterprise. It is not necessary to have a specific legislative provision or for the Minister to use his or her legislative direction powers for a Government Trading Enterprise to undertake a Community Service Obligation. This is because in effect the Government is buying the service and the Trading Enterprise’s commercial obligations are not compromised. Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
The imposition of a Community Service Obligation on a Government Trading Enterprise usually requires the Government to recognise and in some way compensate the cost of the non-commercial activity to the Government Trading Enterprise. It is not necessary to have a specific legislative provision or for the Minister to use his or her legislative direction powers for a Government Trading Enterprise to undertake a Community Service Obligation. This is because in effect the Government is buying the service and the Trading Enterprise’s commercial obligations are not compromised. Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
Western Power receives a CSO payment for its provision of pensioners’ and seniors’ concessions without a Ministerial direction under the Act. Government can provide CSO payments for any activity which Western Power would not elect to do on a commercial basis, and which other businesses in the public or private sectors are not obliged to undertake.
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