❓ Mr Marmion questions the Minister for Energy about the introduction of a new 'tariff adjustment contribution' (TAC) for businesses, inquiring whether it will extend to Perth and the South West. The Minister denies it's a tax and blames Mr Marmion for high energy costs.
AnsweredQoN 739Legislative Assembly
QuestionView source ↗
PILBARA ELECTRICITY
REFORMS — HORIZON POWER
739. Mr W.R. MARMION to the Minister for Energy:
I have a supplementary question. Can
I thank the minister for his rationale around —
Several members interjected.
The SPEAKER : Members! Yes, a bad
answer—not from you; from him.
Mr W.R. MARMION : I thank the
minister for explaining the rationale behind introducing a new tax—what
he calls the new TAC. Is the minister going to introduce the new tariff
adjustment contribution to businesses in Perth and the south west as well?
Ms J.J. Shaw interjected.
The SPEAKER : Member for Swan
Hills! Minister.
REFORMS — HORIZON POWER
739. Mr W.R. MARMION to the Minister for Energy:
I have a supplementary question. Can
I thank the minister for his rationale around —
Several members interjected.
The SPEAKER : Members! Yes, a bad
answer—not from you; from him.
Mr W.R. MARMION : I thank the
minister for explaining the rationale behind introducing a new tax—what
he calls the new TAC. Is the minister going to introduce the new tariff
adjustment contribution to businesses in Perth and the south west as well?
Ms J.J. Shaw interjected.
The SPEAKER : Member for Swan
Hills! Minister.
AnswerView source ↗
It is unfortunate that the shadow
Minister for Energy is not here, because he might have actually understood the
answer I gave. Unfortunately, apparently the member for Nedlands does not
understand what I said. Let me make it clear: this is not a tax.
Several members interjected.
The SPEAKER : Members!
Mr W.J. JOHNSTON : This is not
a tax. It is a charge on the use —
Several members interjected.
Mr W.J. JOHNSTON : How dopey is this? The next time the
member for Nedlands opens his energy bill, he should have a look at it. A range
of charges sit on that piece of paper. I assume that he reads it.
Mrs L.M. Harvey interjected.
The SPEAKER : Leader of the
Opposition!
Mr
W.J. JOHNSTON : Let me make it
clear: they are all charges. None of them are taxes. Apart from the GST charge by the federal government, there are no taxes in our energy bill. However, in
our energy bill is the TEC— the tariff equalisation contribution—which
we pay. It pays for Horizon Power's operations. It is not a tax and it
has never been a tax, and neither is the tariff adjustment contribution. It is
not a tax.
Mrs L.M. Harvey interjected.
The SPEAKER : Leader of the
Opposition!
Mr W.J. JOHNSTON : Let me make
it clear: existing Horizon customers will not pay it because they already have
their charges.
Ms R. Saffioti interjected.
The SPEAKER : Minister for
Transport!
Mr
W.J. JOHNSTON : It will be charged
to Horizon, but Horizon cannot pass that charge on to its existing contracts . If a person who has an existing contract
with Horizon chooses a lower cost option, they will leave the Horizon Power contract and move to that new, lower cost option. Even after the TAC, their new
option will be a lower cost. How do we know that? Because the Horizon cost
structure is massively higher than it should be. Why? Because the member ruined
it when he was a minister and approved the contract that is embedded and has
doubled the costs for Horizon Power. It is unbelievable that the member does
not get this. Members should understand that the only people who will leave the Horizon Power contract and go to a new
provider are those who can get a better deal from the new provider. Even
after they pay the TAC, they are still going to be better off than they are
currently; otherwise they will not move.
The SPEAKER : That is the end
of question time.
Minister for Energy is not here, because he might have actually understood the
answer I gave. Unfortunately, apparently the member for Nedlands does not
understand what I said. Let me make it clear: this is not a tax.
Several members interjected.
The SPEAKER : Members!
Mr W.J. JOHNSTON : This is not
a tax. It is a charge on the use —
Several members interjected.
Mr W.J. JOHNSTON : How dopey is this? The next time the
member for Nedlands opens his energy bill, he should have a look at it. A range
of charges sit on that piece of paper. I assume that he reads it.
Mrs L.M. Harvey interjected.
The SPEAKER : Leader of the
Opposition!
Mr
W.J. JOHNSTON : Let me make it
clear: they are all charges. None of them are taxes. Apart from the GST charge by the federal government, there are no taxes in our energy bill. However, in
our energy bill is the TEC— the tariff equalisation contribution—which
we pay. It pays for Horizon Power's operations. It is not a tax and it
has never been a tax, and neither is the tariff adjustment contribution. It is
not a tax.
Mrs L.M. Harvey interjected.
The SPEAKER : Leader of the
Opposition!
Mr W.J. JOHNSTON : Let me make
it clear: existing Horizon customers will not pay it because they already have
their charges.
Ms R. Saffioti interjected.
The SPEAKER : Minister for
Transport!
Mr
W.J. JOHNSTON : It will be charged
to Horizon, but Horizon cannot pass that charge on to its existing contracts . If a person who has an existing contract
with Horizon chooses a lower cost option, they will leave the Horizon Power contract and move to that new, lower cost option. Even after the TAC, their new
option will be a lower cost. How do we know that? Because the Horizon cost
structure is massively higher than it should be. Why? Because the member ruined
it when he was a minister and approved the contract that is embedded and has
doubled the costs for Horizon Power. It is unbelievable that the member does
not get this. Members should understand that the only people who will leave the Horizon Power contract and go to a new
provider are those who can get a better deal from the new provider. Even
after they pay the TAC, they are still going to be better off than they are
currently; otherwise they will not move.
The SPEAKER : That is the end
of question time.
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