❓ The Minister for Energy outlines the McGowan Labor government's electricity credit support for small businesses and households, contrasting WA's approach with eastern states' privatisation and higher profit margins for electricity companies.
AnsweredQoN 932Legislative Assembly
QuestionView source ↗
ELECTRICITY CREDIT —
2020–21 STATE BUDGET — SMALL BUSINESS
932. Mr
S.A. MILLMAN to the Minister for Energy:
Can the minister outline to the
house how the McGowan Labor government is supporting small businesses across Western
Australia, particularly as the economy recovers from COVID-19; and, can the
minister advise the house whether� he is aware of any risks to these businesses
that would burden them with higher electricity costs?
The SPEAKER : Premier—ah,
minister.
2020–21 STATE BUDGET — SMALL BUSINESS
932. Mr
S.A. MILLMAN to the Minister for Energy:
Can the minister outline to the
house how the McGowan Labor government is supporting small businesses across Western
Australia, particularly as the economy recovers from COVID-19; and, can the
minister advise the house whether� he is aware of any risks to these businesses
that would burden them with higher electricity costs?
The SPEAKER : Premier—ah,
minister.
AnswerView source ↗
Thank you very much, but I am very
happy being Minister for Energy!
I can absolutely update the member
on that. I remind everybody that the McGowan Labor government supported small
businesses in Western Australia that are customers of Synergy and Horizon, and
charities as well, with a $2 500 offset to their electricity costs. The average
electricity bill for those businesses in Western Australia is $2 800, so
effectively nine or 10 months of the average bill for Synergy and Horizon
customers was paid for by the government of Western Australia. Of course, it
was not just businesses that were supported because every Western Australian who is a customer of Synergy
and Horizon received a $600 offset, which is also big support. For those people who are pensioners and on Health Care
Cards, we doubled the energy assistance payment, meaning that nearly $1 400 of their electricity bill is being
paid for by the McGowan government, which is for many of those people , more than a free year of electricity. That shows
that this government is deeply committed to supporting people in Western Australia.
It is interesting because there are risks to the future costs of electricity.
Here in Western Australia, the average retail margin for electricity is barely
two per cent. Interestingly, in Victoria, it is well over six per cent and
in New South Wales, it is five per cent. We need to examine not just the
outright price of electricity, but the make-up of electricity costs because, of
course, Tasmania is a low-cost jurisdiction because it is very small and it
relies 100 per cent on renewable energy compared with a high-cost jurisdiction
like South Australia, which is, of course, more expensive than Western Australia.
If we look at the components, the profit margins for the companies in those
states are higher than the profit margins here in Western Australia, which
means that the underlying costs do not
benefit the consumers; they benefit the companies that sell electricity. That
is what we have seen on the east coast. Every time there has been
alleged benefits from reform on the east coast, it does not go to consumers;
rather, it goes to the investors in electricity companies through higher
profits. Is it not interesting that one of the electricity companies that
operates here in Western Australia was privatised by the Liberal Party and is
now owned by foreign interests? Is that not
interesting? What do we say about the electricity system in Western Australia?
One of the things that we say is that the Liberal Party has a fetish for
privatisation. When there is privatisation, prices go up and companies are
bought by foreign interests.
Several members interjected.
The SPEAKER : Members!
Mr W.J. JOHNSTON : At the last
election we made it clear that we would keep Western Power, Synergy and Horizon
in public ownership and we have delivered. The Liberal Party said that it
wanted to privatise those businesses just like it did with Alinta. I remind
people that the Liberal Party sold Alinta and now it is owned by foreign
interests.
happy being Minister for Energy!
I can absolutely update the member
on that. I remind everybody that the McGowan Labor government supported small
businesses in Western Australia that are customers of Synergy and Horizon, and
charities as well, with a $2 500 offset to their electricity costs. The average
electricity bill for those businesses in Western Australia is $2 800, so
effectively nine or 10 months of the average bill for Synergy and Horizon
customers was paid for by the government of Western Australia. Of course, it
was not just businesses that were supported because every Western Australian who is a customer of Synergy
and Horizon received a $600 offset, which is also big support. For those people who are pensioners and on Health Care
Cards, we doubled the energy assistance payment, meaning that nearly $1 400 of their electricity bill is being
paid for by the McGowan government, which is for many of those people , more than a free year of electricity. That shows
that this government is deeply committed to supporting people in Western Australia.
It is interesting because there are risks to the future costs of electricity.
Here in Western Australia, the average retail margin for electricity is barely
two per cent. Interestingly, in Victoria, it is well over six per cent and
in New South Wales, it is five per cent. We need to examine not just the
outright price of electricity, but the make-up of electricity costs because, of
course, Tasmania is a low-cost jurisdiction because it is very small and it
relies 100 per cent on renewable energy compared with a high-cost jurisdiction
like South Australia, which is, of course, more expensive than Western Australia.
If we look at the components, the profit margins for the companies in those
states are higher than the profit margins here in Western Australia, which
means that the underlying costs do not
benefit the consumers; they benefit the companies that sell electricity. That
is what we have seen on the east coast. Every time there has been
alleged benefits from reform on the east coast, it does not go to consumers;
rather, it goes to the investors in electricity companies through higher
profits. Is it not interesting that one of the electricity companies that
operates here in Western Australia was privatised by the Liberal Party and is
now owned by foreign interests? Is that not
interesting? What do we say about the electricity system in Western Australia?
One of the things that we say is that the Liberal Party has a fetish for
privatisation. When there is privatisation, prices go up and companies are
bought by foreign interests.
Several members interjected.
The SPEAKER : Members!
Mr W.J. JOHNSTON : At the last
election we made it clear that we would keep Western Power, Synergy and Horizon
in public ownership and we have delivered. The Liberal Party said that it
wanted to privatise those businesses just like it did with Alinta. I remind
people that the Liberal Party sold Alinta and now it is owned by foreign
interests.
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