A parliamentary question addresses the Treasurer regarding electricity price increases, a $780 million subsidy, and the economic impact on WA. The Treasurer confirms consultation and clarifies the subsidy's purpose, deferring decisions on business price increases pending consultation.

AnsweredQoN 354Legislative Council
Asked
9 April 2008
Portfolio
parliamentary secretary representing the Treasurer

QuestionView source ↗

ELECTRICITY — RETAIL PRICE INCREASE
I ask this question on behalf of Hon Norman Moore. I refer the Treasurer to Labor’s plan for annual 10 per cent retail electricity price rises after the next election and the $780 million subsidy. (1) Was the Treasurer consulted about the decisions? (2) Does the Treasurer support the large price increases for business recommended by the Office of Energy; and, if so, what is Treasury’s advice on the wider economic impact in Western Australia of such significant cost increases? (3) Will the Treasurer indicate his understanding of where the $780 million subsidy will go and for what purpose? Hon KATE DOUST

AnswerView source ↗

I thank the honourable member for some notice of this question. I have been provided with the following response — (1) Yes. (2) Government has yet to make a determination of the size of the increase for contestable customers. Government will consider this matter once the Office of Energy has conducted its consultation process. The draft recommendations contained in the Office of Energy report are open for an eight-week public consultation period, closing 30 May 2008. (3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.
(1) Was the Treasurer consulted about the decisions? (2) Does the Treasurer support the large price increases for business recommended by the Office of Energy; and, if so, what is Treasury’s advice on the wider economic impact in Western Australia of such significant cost increases? (3) Will the Treasurer indicate his understanding of where the $780 million subsidy will go and for what purpose? Hon KATE DOUST replied: I thank the honourable member for some notice of this question. I have been provided with the following response — (1) Yes. (2) Government has yet to make a determination of the size of the increase for contestable customers. Government will consider this matter once the Office of Energy has conducted its consultation process. The draft recommendations contained in the Office of Energy report are open for an eight-week public consultation period, closing 30 May 2008. (3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.
(2) Does the Treasurer support the large price increases for business recommended by the Office of Energy; and, if so, what is Treasury’s advice on the wider economic impact in Western Australia of such significant cost increases? (3) Will the Treasurer indicate his understanding of where the $780 million subsidy will go and for what purpose? Hon KATE DOUST replied: I thank the honourable member for some notice of this question. I have been provided with the following response — (1) Yes. (2) Government has yet to make a determination of the size of the increase for contestable customers. Government will consider this matter once the Office of Energy has conducted its consultation process. The draft recommendations contained in the Office of Energy report are open for an eight-week public consultation period, closing 30 May 2008. (3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.
(3) Will the Treasurer indicate his understanding of where the $780 million subsidy will go and for what purpose? Hon KATE DOUST replied: I thank the honourable member for some notice of this question. I have been provided with the following response — (1) Yes. (2) Government has yet to make a determination of the size of the increase for contestable customers. Government will consider this matter once the Office of Energy has conducted its consultation process. The draft recommendations contained in the Office of Energy report are open for an eight-week public consultation period, closing 30 May 2008. (3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.
Hon KATE DOUST replied: I thank the honourable member for some notice of this question. I have been provided with the following response — (1) Yes. (2) Government has yet to make a determination of the size of the increase for contestable customers. Government will consider this matter once the Office of Energy has conducted its consultation process. The draft recommendations contained in the Office of Energy report are open for an eight-week public consultation period, closing 30 May 2008. (3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.
I thank the honourable member for some notice of this question. I have been provided with the following response — (1) Yes. (2) Government has yet to make a determination of the size of the increase for contestable customers. Government will consider this matter once the Office of Energy has conducted its consultation process. The draft recommendations contained in the Office of Energy report are open for an eight-week public consultation period, closing 30 May 2008. (3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.
(1) Yes. (2) Government has yet to make a determination of the size of the increase for contestable customers. Government will consider this matter once the Office of Energy has conducted its consultation process. The draft recommendations contained in the Office of Energy report are open for an eight-week public consultation period, closing 30 May 2008. (3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.
(2) Government has yet to make a determination of the size of the increase for contestable customers. Government will consider this matter once the Office of Energy has conducted its consultation process. The draft recommendations contained in the Office of Energy report are open for an eight-week public consultation period, closing 30 May 2008. (3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.
(3) The estimated community service obligation payment of $780 million will be paid to Synergy and will fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential non-contestable customers.

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