Hon Wendy Duncan asks the Minister for Energy to consider implementing a concession arrangement for pensioner concession cardholders who use bottled gas. The Minister responds by outlining alternative programs addressing energy hardship, citing recommendations against direct consumer subsidies.

AnsweredQoN 578Legislative Council
Asked
5 June 2008
Portfolio
Energy

QuestionView source ↗

BOTTLED LIQUEFIED PETROLEUM GAS — HOUSEHOLD USE
I refer to the inquiry into the affordability of bottled liquefied petroleum gas for household use in Western Australia, which found that — . . . cylinder LPG customers that rely on government assistance or pensions as their primary or sole source of income are not well placed to cope with significant increases in LPG prices . . . The same inquiry also found that — The retail price of LPG in 45 kg cylinders in many regions has doubled between 2000 and 2007 with sharp retail price increases occurring over the past four years. Will the minister consider implementing a concession arrangement for pensioner concession cardholders who use bottled gas, similar to the arrangements that exist for electricity, telephone and water? Hon KIM CHANCE

AnswerView source ↗

I thank Hon Wendy Duncan for some notice of this question. The Minister for Energy advises that he initiated the inquiry, so he is aware of its findings and recommendations. The key findings and recommendations on pages xiii and xiv of the executive summary of the inquiry conducted by Mr Max Trenorden, MLA and Mr Mick Murray, MLA were — Direct consumer subsidies are not supported as a mechanism to address energy affordability issues . . . . . . action by Government should take the form of initiatives that address the factors causing energy poverty and identify and assist customers in financial hardship to better manage their energy usage. Further, recommendation 8 of the inquiry report stated — That Government develops a comprehensive energy hardship policy that includes consideration of the affordability of LPG and consumer protection issues for households on lower incomes. That is set out in the executive summary on page xiv. In addressing the findings of the LPG inquiry and of the government utilities essential services hardship interagency working group, the government has introduced a range of programs in the 2008-09 budget. First, under the financial counselling support program, the Department for Child Protection will receive additional funding in the budget of approximately $2.1 million per annum to deliver increased financial counselling to assist those in genuine financial hardship unable to pay their utility bills. Second, under the hardship utilities grants scheme, the Department for Child Protection will receive additional funding of approximately $1.8 million per annum to provide grants to assist those declared in financial hardship with payment of their energy and water account debts so that they are not denied access to essential services. Third, under the hardship efficiency program, the Office of Energy will receive approximately $2.1 million per annum for a hardship efficiency package, which will include a specific subprogram aimed at people who are LPG dependent to fund energy and water efficiency rebates and services for those declared in utility financial hardship.
Hon KIM CHANCE replied: I thank Hon Wendy Duncan for some notice of this question. The Minister for Energy advises that he initiated the inquiry, so he is aware of its findings and recommendations. The key findings and recommendations on pages xiii and xiv of the executive summary of the inquiry conducted by Mr Max Trenorden, MLA and Mr Mick Murray, MLA were — Direct consumer subsidies are not supported as a mechanism to address energy affordability issues . . . . . . action by Government should take the form of initiatives that address the factors causing energy poverty and identify and assist customers in financial hardship to better manage their energy usage. Further, recommendation 8 of the inquiry report stated — That Government develops a comprehensive energy hardship policy that includes consideration of the affordability of LPG and consumer protection issues for households on lower incomes. That is set out in the executive summary on page xiv. In addressing the findings of the LPG inquiry and of the government utilities essential services hardship interagency working group, the government has introduced a range of programs in the 2008-09 budget. First, under the financial counselling support program, the Department for Child Protection will receive additional funding in the budget of approximately $2.1 million per annum to deliver increased financial counselling to assist those in genuine financial hardship unable to pay their utility bills. Second, under the hardship utilities grants scheme, the Department for Child Protection will receive additional funding of approximately $1.8 million per annum to provide grants to assist those declared in financial hardship with payment of their energy and water account debts so that they are not denied access to essential services. Third, under the hardship efficiency program, the Office of Energy will receive approximately $2.1 million per annum for a hardship efficiency package, which will include a specific subprogram aimed at people who are LPG dependent to fund energy and water efficiency rebates and services for those declared in utility financial hardship.
I thank Hon Wendy Duncan for some notice of this question. The Minister for Energy advises that he initiated the inquiry, so he is aware of its findings and recommendations. The key findings and recommendations on pages xiii and xiv of the executive summary of the inquiry conducted by Mr Max Trenorden, MLA and Mr Mick Murray, MLA were — Direct consumer subsidies are not supported as a mechanism to address energy affordability issues . . . . . . action by Government should take the form of initiatives that address the factors causing energy poverty and identify and assist customers in financial hardship to better manage their energy usage. Further, recommendation 8 of the inquiry report stated — That Government develops a comprehensive energy hardship policy that includes consideration of the affordability of LPG and consumer protection issues for households on lower incomes. That is set out in the executive summary on page xiv. In addressing the findings of the LPG inquiry and of the government utilities essential services hardship interagency working group, the government has introduced a range of programs in the 2008-09 budget. First, under the financial counselling support program, the Department for Child Protection will receive additional funding in the budget of approximately $2.1 million per annum to deliver increased financial counselling to assist those in genuine financial hardship unable to pay their utility bills. Second, under the hardship utilities grants scheme, the Department for Child Protection will receive additional funding of approximately $1.8 million per annum to provide grants to assist those declared in financial hardship with payment of their energy and water account debts so that they are not denied access to essential services. Third, under the hardship efficiency program, the Office of Energy will receive approximately $2.1 million per annum for a hardship efficiency package, which will include a specific subprogram aimed at people who are LPG dependent to fund energy and water efficiency rebates and services for those declared in utility financial hardship.
The Minister for Energy advises that he initiated the inquiry, so he is aware of its findings and recommendations. The key findings and recommendations on pages xiii and xiv of the executive summary of the inquiry conducted by Mr Max Trenorden, MLA and Mr Mick Murray, MLA were — Direct consumer subsidies are not supported as a mechanism to address energy affordability issues . . . . . . action by Government should take the form of initiatives that address the factors causing energy poverty and identify and assist customers in financial hardship to better manage their energy usage. Further, recommendation 8 of the inquiry report stated — That Government develops a comprehensive energy hardship policy that includes consideration of the affordability of LPG and consumer protection issues for households on lower incomes. That is set out in the executive summary on page xiv. In addressing the findings of the LPG inquiry and of the government utilities essential services hardship interagency working group, the government has introduced a range of programs in the 2008-09 budget. First, under the financial counselling support program, the Department for Child Protection will receive additional funding in the budget of approximately $2.1 million per annum to deliver increased financial counselling to assist those in genuine financial hardship unable to pay their utility bills. Second, under the hardship utilities grants scheme, the Department for Child Protection will receive additional funding of approximately $1.8 million per annum to provide grants to assist those declared in financial hardship with payment of their energy and water account debts so that they are not denied access to essential services. Third, under the hardship efficiency program, the Office of Energy will receive approximately $2.1 million per annum for a hardship efficiency package, which will include a specific subprogram aimed at people who are LPG dependent to fund energy and water efficiency rebates and services for those declared in utility financial hardship.
. . . action by Government should take the form of initiatives that address the factors causing energy poverty and identify and assist customers in financial hardship to better manage their energy usage.

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