❓ Mr. Johnston questions the Minister for Energy about delays in a review of renewable energy's impact on the South West Interconnected System. The Minister confirms the review is underway but has been subject to changing terms of reference due to federal policy shifts.
AnsweredQoN 158Legislative Assembly
QuestionView source ↗
SOUTH WEST
INTERCONNECTED SYSTEM — RENEWABLE ENERGY
158. Mr W.J. JOHNSTON to the
Minister for Energy:
(1) Can the
minister confirm that he announced that there will be a review of the impact of
renewable energy on the south west interconnected system, as reported in The West Australian of 26 April 2013?
(2) Can the
minister confirm that the review is to be undertaken by the Economic Regulation
Authority?
(3) Can the
minister also confirm that after 11 months, the Economic Regulation Authority
still has not received a reference from the minister to conduct this inquiry?
INTERCONNECTED SYSTEM — RENEWABLE ENERGY
158. Mr W.J. JOHNSTON to the
Minister for Energy:
(1) Can the
minister confirm that he announced that there will be a review of the impact of
renewable energy on the south west interconnected system, as reported in The West Australian of 26 April 2013?
(2) Can the
minister confirm that the review is to be undertaken by the Economic Regulation
Authority?
(3) Can the
minister also confirm that after 11 months, the Economic Regulation Authority
still has not received a reference from the minister to conduct this inquiry?
AnswerView source ↗
(1)–(3)
I thank the member for the question. I can confirm that early on I announced
that we were going to commission the Economic Regulation Authority to undertake
a review of renewable energy in this state. The Department of Treasury, the
Public Utilities Office and the Economic Regulation Authority have been in
discussion for quite a while about the terms of reference for that review. I
can confirm that the reference was given to those agencies, and the work is
underway. I can also confirm that the ERA has done quite a bit of work on this
already. One reason the terms of reference needed to be altered a number of
times was that this is a fluid debate. A new federal government came in
announcing that it will remove the carbon tax. When that happens—I do
not know when—it will remove about $300 million worth of impost on
electricity consumers of Western Australia; it will probably be a bit more. The
new commonwealth government also announced that it will look at reform and
changes to the renewable energy target program, as well as the small renewable
energy target that promotes photovoltaic panels on rooftops. The review of the
RET was planned, but the commonwealth government has altered that plan and
accelerated it. The review was to be done by the Productivity Commission, but
now the commonwealth government has set up the Warburton review on that. This
is a fluid feast. It is best to know the number of issues to be examined before
starting a study, and, if the issues are changing, it is best to hold back and identify
them before going forward. On this side of the house, we are not in the game of
putting on a review for the sake of having a review, when we do not know what the review is.
I thank the member for the question. I can confirm that early on I announced
that we were going to commission the Economic Regulation Authority to undertake
a review of renewable energy in this state. The Department of Treasury, the
Public Utilities Office and the Economic Regulation Authority have been in
discussion for quite a while about the terms of reference for that review. I
can confirm that the reference was given to those agencies, and the work is
underway. I can also confirm that the ERA has done quite a bit of work on this
already. One reason the terms of reference needed to be altered a number of
times was that this is a fluid debate. A new federal government came in
announcing that it will remove the carbon tax. When that happens—I do
not know when—it will remove about $300 million worth of impost on
electricity consumers of Western Australia; it will probably be a bit more. The
new commonwealth government also announced that it will look at reform and
changes to the renewable energy target program, as well as the small renewable
energy target that promotes photovoltaic panels on rooftops. The review of the
RET was planned, but the commonwealth government has altered that plan and
accelerated it. The review was to be done by the Productivity Commission, but
now the commonwealth government has set up the Warburton review on that. This
is a fluid feast. It is best to know the number of issues to be examined before
starting a study, and, if the issues are changing, it is best to hold back and identify
them before going forward. On this side of the house, we are not in the game of
putting on a review for the sake of having a review, when we do not know what the review is.
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