Dr. Thomas questions the Energy Minister regarding Synergy's $773.7 million accounting reversal related to onerous contracts. The Minister provides limited information, citing commercial sensitivity.

AnsweredQoN 1286Legislative Council
Asked
23 October 2024
Portfolio
Energy

QuestionView source ↗

SYNERGY —
OPERATING SURPLUS
1286. Hon Dr STEVE THOMAS to the parliamentary secretary
representing the Minister for Energy:
I refer to my question without
notice 1211 of 16 October, highlighting Synergy's stunning accounting
reversal of the onerous $773.7 million booked impairment in the 2023–2024 Annual report on state finances .
(1) What were the
specific changes in contractual assumptions underpinning the contracts that
initiated and underpinned the rationale for the $773.7 million accounting
reversal?
(2) How many Synergy contracts under
the reversal umbrella were renegotiated, and on what dates?
(3) What is the timeframe of service provided
associated with each renegotiated contract under the reversal umbrella?
(4) Was any
government agency, department or entity, such as the State Solicitor's
Office, party to the contractual renegotiations?
(5) If yes to (4), will the minister
detail relevant participants?

AnswerView source ↗

I thank the honourable member for
some notice of the question. On behalf of the Minister for Energy, I provide
the following answer.
(1) The movement
in the onerous contracts provision incorporates updated future pricing
assumptions, volume assumptions and macroeconomic factors such as indexation
and discount rate projections.
(2)–(3) Releasing
this information could lead to identifying the counterparties, which would have
an adverse impact on the negotiation of future contracts.
(4) No.
(5) Not applicable.

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