❓ Mr Nalder questions Premier McGowan on rising electricity prices in WA compared to the rest of Australia. Premier McGowan defends his government's record, citing lower price increases than the previous Liberal-National government and criticising their proposed solutions.
AnsweredQoN 1116Legislative Assembly
QuestionView source ↗
ELECTRICITY PRICES — INCREASES
1116. Mr D.C. NALDER to the Premier:
I refer to the massive $850 cost-of-living increases under
the McGowan Labor government and the report released yesterday by the Australian Energy Market Commission. Why is the cost
of electricity increasing in Western Australia while in the rest of
Australia it is going down?
1116. Mr D.C. NALDER to the Premier:
I refer to the massive $850 cost-of-living increases under
the McGowan Labor government and the report released yesterday by the Australian Energy Market Commission. Why is the cost
of electricity increasing in Western Australia while in the rest of
Australia it is going down?
AnswerView source ↗
Before I answer that question, I will
take this opportunity to pass on the thoughts of the house, the Parliament and
the people of Western Australia to the people of New Zealand, with the tragedy
that has recently occurred there. I also pass on our thoughts to all the
Australians and their families and to all the other people from around the world who have been caught up in the volcanic
eruption. It is a shocking event. It is just one of those terrible things ,
particularly when it occurs to our closest friends, the people of New Zealand.
The
fact of the matter is this: this government has put up the price of electricity
by half the rate of the last Liberal– National government. Within
its first two years in office, it put up electricity prices by 20 per cent or
25 per cent in one year.
Several members interjected.
The SPEAKER : Members!
Mr M. McGOWAN : In this year's
budget, electricity prices went up by the lowest rate in 13 years. In our first
couple of budgets, we put prices up by less than half of what the former
government did in its first two budgets. That is the reality.
Mrs A.K. Hayden interjected.
The SPEAKER : Member for
Darling Range!
Mr M. McGOWAN : Over the
former government's term in office, it put up electricity prices by
over 80 per cent. Members opposite can shake their heads about it, but that is
a fact. Go and have a look at the budgets; that is what occurred. The solution that I saw proposed last night by the member for
Bateman is some sort of full retail contestability.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr M. McGOWAN : If we were to
go to full retail contestability, before we get there, we would have to go to
full cost reflectivity. That means that prices have to be put up significantly
before we get there. Otherwise, why do members
opposite think they did not do it while they were in office? Why did they not
do it when they were in office ? They first would have had to put up
prices very significantly.
The second solution from the Liberal
Party is to sell off the assets. That was what it took to the state election.
Several members interjected.
The SPEAKER : Members!
Mr
M. McGOWAN : That is what I hear
members opposite regularly saying. I have heard the Leader of the Opposition say that it is something that they should consider.
Several members interjected.
The SPEAKER : Members! Member
for Darling Range, if you want to be here for the rest of the debate, you had
better calm down.
Mr
M. McGOWAN : I have heard the
Leader of the Opposition say that since the state election. The Liberal Party's policy is to sell off assets. What do we
think happens then? What happens then is what occurred in New South Wales ,
Victoria and South Australia. The prices over there are higher than the prices
here. The Liberal Party's solution is to sell off those assets.
Several members interjected.
The SPEAKER : Members, you
have asked a question. Listen to the answer. It might not be the one you want,
but that is the one you are getting.
Mr M. McGOWAN : The Australian
Energy Market Commission has nothing to do with Western Australia; it is some sort of academic, back-of-the-envelope
analysis of our state. It does not have a role here. The former government brought in legislation to give the commission a role, but it does not have a role
because the former government never passed the legislation; it withdrew the
legislation. It has nothing to do with Western Australia.
We are a separate market. Obviously,
there are drivers in price here that are complex—in particular, the
price of gas, which comes down the pipeline;
the price of energy generated out of Collie; and the interaction with
renewables such as solar. This year, we put prices up by the lowest
level in 13 years. Under this government, people will see price hikes of far
less than they did —
Mr A. Krsticevic interjected.
Mr M. McGOWAN : — under
the Liberals and Nationals in government.
The SPEAKER : Member for
Carine, I call you to order for the first time.
take this opportunity to pass on the thoughts of the house, the Parliament and
the people of Western Australia to the people of New Zealand, with the tragedy
that has recently occurred there. I also pass on our thoughts to all the
Australians and their families and to all the other people from around the world who have been caught up in the volcanic
eruption. It is a shocking event. It is just one of those terrible things ,
particularly when it occurs to our closest friends, the people of New Zealand.
The
fact of the matter is this: this government has put up the price of electricity
by half the rate of the last Liberal– National government. Within
its first two years in office, it put up electricity prices by 20 per cent or
25 per cent in one year.
Several members interjected.
The SPEAKER : Members!
Mr M. McGOWAN : In this year's
budget, electricity prices went up by the lowest rate in 13 years. In our first
couple of budgets, we put prices up by less than half of what the former
government did in its first two budgets. That is the reality.
Mrs A.K. Hayden interjected.
The SPEAKER : Member for
Darling Range!
Mr M. McGOWAN : Over the
former government's term in office, it put up electricity prices by
over 80 per cent. Members opposite can shake their heads about it, but that is
a fact. Go and have a look at the budgets; that is what occurred. The solution that I saw proposed last night by the member for
Bateman is some sort of full retail contestability.
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr M. McGOWAN : If we were to
go to full retail contestability, before we get there, we would have to go to
full cost reflectivity. That means that prices have to be put up significantly
before we get there. Otherwise, why do members
opposite think they did not do it while they were in office? Why did they not
do it when they were in office ? They first would have had to put up
prices very significantly.
The second solution from the Liberal
Party is to sell off the assets. That was what it took to the state election.
Several members interjected.
The SPEAKER : Members!
Mr
M. McGOWAN : That is what I hear
members opposite regularly saying. I have heard the Leader of the Opposition say that it is something that they should consider.
Several members interjected.
The SPEAKER : Members! Member
for Darling Range, if you want to be here for the rest of the debate, you had
better calm down.
Mr
M. McGOWAN : I have heard the
Leader of the Opposition say that since the state election. The Liberal Party's policy is to sell off assets. What do we
think happens then? What happens then is what occurred in New South Wales ,
Victoria and South Australia. The prices over there are higher than the prices
here. The Liberal Party's solution is to sell off those assets.
Several members interjected.
The SPEAKER : Members, you
have asked a question. Listen to the answer. It might not be the one you want,
but that is the one you are getting.
Mr M. McGOWAN : The Australian
Energy Market Commission has nothing to do with Western Australia; it is some sort of academic, back-of-the-envelope
analysis of our state. It does not have a role here. The former government brought in legislation to give the commission a role, but it does not have a role
because the former government never passed the legislation; it withdrew the
legislation. It has nothing to do with Western Australia.
We are a separate market. Obviously,
there are drivers in price here that are complex—in particular, the
price of gas, which comes down the pipeline;
the price of energy generated out of Collie; and the interaction with
renewables such as solar. This year, we put prices up by the lowest
level in 13 years. Under this government, people will see price hikes of far
less than they did —
Mr A. Krsticevic interjected.
Mr M. McGOWAN : — under
the Liberals and Nationals in government.
The SPEAKER : Member for
Carine, I call you to order for the first time.
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