Following a power crisis, the Minister addresses concerns about future electricity supply, highlighting a gas swap arrangement and increased non-gas generating capacity. A forum is planned to improve demand management.

AnsweredQoN 6Legislative Assembly
Asked
2 March 2004
Portfolio
Energy

QuestionView source ↗

I refer to the disastrous handling of the power crisis on black Wednesday, 18 February and to claims by Epic Energy that the crisis could have been averted had the Government negotiated firm supply contracts for gas to meet the needs of the south west grid. (1) Can the minister guarantee electricity supplies for the remainder of this summer? (2) Can the minister guarantee electricity supplies for next summer? (3) What has the minister done since 18 February to ensure power supplies for the remainder of this year and next year and to avert a similar situation occurring? Mr E.S. RIPPER

AnswerView source ↗

(1)-(3) This is a reasonable question from a reasonable member of the Opposition. I am pleased to say that at the time of the crisis negotiations were being undertaken between Western Power and Wesfarmers, which were regrettably not concluded, for a gas swap arrangement between Western Power and Wesfarmers. Those negotiations were concluded after personal intervention at the highest level at Western Power and Wesfarmers. A gas swap arrangement between Western Power and Wesfarmers is now in place, which should prevent any further occurrence of electricity supply problems related to shortages of gas along the pipeline. Western Power was in the process of implementing an additional 200 megawatts of non-gas generating capacity through a variety of mechanisms, including providing for liquid fuels to be used in some power stations. Mr C.J. Barnett: Diesel? Mr E.S. RIPPER: Does the Leader of the Opposition think that because he does not like the word “diesel” the people of Western Australia should be without power on a very hot summer’s day? Mr C.J. Barnett: Why not call it diesel? Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
(1) Can the minister guarantee electricity supplies for the remainder of this summer? (2) Can the minister guarantee electricity supplies for next summer? (3) What has the minister done since 18 February to ensure power supplies for the remainder of this year and next year and to avert a similar situation occurring? Mr E.S. RIPPER replied: (1)-(3) This is a reasonable question from a reasonable member of the Opposition. I am pleased to say that at the time of the crisis negotiations were being undertaken between Western Power and Wesfarmers, which were regrettably not concluded, for a gas swap arrangement between Western Power and Wesfarmers. Those negotiations were concluded after personal intervention at the highest level at Western Power and Wesfarmers. A gas swap arrangement between Western Power and Wesfarmers is now in place, which should prevent any further occurrence of electricity supply problems related to shortages of gas along the pipeline. Western Power was in the process of implementing an additional 200 megawatts of non-gas generating capacity through a variety of mechanisms, including providing for liquid fuels to be used in some power stations. Mr C.J. Barnett: Diesel? Mr E.S. RIPPER: Does the Leader of the Opposition think that because he does not like the word “diesel” the people of Western Australia should be without power on a very hot summer’s day? Mr C.J. Barnett: Why not call it diesel? Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
(2) Can the minister guarantee electricity supplies for next summer? (3) What has the minister done since 18 February to ensure power supplies for the remainder of this year and next year and to avert a similar situation occurring? Mr E.S. RIPPER replied: (1)-(3) This is a reasonable question from a reasonable member of the Opposition. I am pleased to say that at the time of the crisis negotiations were being undertaken between Western Power and Wesfarmers, which were regrettably not concluded, for a gas swap arrangement between Western Power and Wesfarmers. Those negotiations were concluded after personal intervention at the highest level at Western Power and Wesfarmers. A gas swap arrangement between Western Power and Wesfarmers is now in place, which should prevent any further occurrence of electricity supply problems related to shortages of gas along the pipeline. Western Power was in the process of implementing an additional 200 megawatts of non-gas generating capacity through a variety of mechanisms, including providing for liquid fuels to be used in some power stations. Mr C.J. Barnett: Diesel? Mr E.S. RIPPER: Does the Leader of the Opposition think that because he does not like the word “diesel” the people of Western Australia should be without power on a very hot summer’s day? Mr C.J. Barnett: Why not call it diesel? Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
(3) What has the minister done since 18 February to ensure power supplies for the remainder of this year and next year and to avert a similar situation occurring? Mr E.S. RIPPER replied: (1)-(3) This is a reasonable question from a reasonable member of the Opposition. I am pleased to say that at the time of the crisis negotiations were being undertaken between Western Power and Wesfarmers, which were regrettably not concluded, for a gas swap arrangement between Western Power and Wesfarmers. Those negotiations were concluded after personal intervention at the highest level at Western Power and Wesfarmers. A gas swap arrangement between Western Power and Wesfarmers is now in place, which should prevent any further occurrence of electricity supply problems related to shortages of gas along the pipeline. Western Power was in the process of implementing an additional 200 megawatts of non-gas generating capacity through a variety of mechanisms, including providing for liquid fuels to be used in some power stations. Mr C.J. Barnett: Diesel? Mr E.S. RIPPER: Does the Leader of the Opposition think that because he does not like the word “diesel” the people of Western Australia should be without power on a very hot summer’s day? Mr C.J. Barnett: Why not call it diesel? Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
Mr E.S. RIPPER replied: (1)-(3) This is a reasonable question from a reasonable member of the Opposition. I am pleased to say that at the time of the crisis negotiations were being undertaken between Western Power and Wesfarmers, which were regrettably not concluded, for a gas swap arrangement between Western Power and Wesfarmers. Those negotiations were concluded after personal intervention at the highest level at Western Power and Wesfarmers. A gas swap arrangement between Western Power and Wesfarmers is now in place, which should prevent any further occurrence of electricity supply problems related to shortages of gas along the pipeline. Western Power was in the process of implementing an additional 200 megawatts of non-gas generating capacity through a variety of mechanisms, including providing for liquid fuels to be used in some power stations. Mr C.J. Barnett: Diesel? Mr E.S. RIPPER: Does the Leader of the Opposition think that because he does not like the word “diesel” the people of Western Australia should be without power on a very hot summer’s day? Mr C.J. Barnett: Why not call it diesel? Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
(1)-(3) This is a reasonable question from a reasonable member of the Opposition. I am pleased to say that at the time of the crisis negotiations were being undertaken between Western Power and Wesfarmers, which were regrettably not concluded, for a gas swap arrangement between Western Power and Wesfarmers. Those negotiations were concluded after personal intervention at the highest level at Western Power and Wesfarmers. A gas swap arrangement between Western Power and Wesfarmers is now in place, which should prevent any further occurrence of electricity supply problems related to shortages of gas along the pipeline. Western Power was in the process of implementing an additional 200 megawatts of non-gas generating capacity through a variety of mechanisms, including providing for liquid fuels to be used in some power stations. Mr C.J. Barnett: Diesel? Mr E.S. RIPPER: Does the Leader of the Opposition think that because he does not like the word “diesel” the people of Western Australia should be without power on a very hot summer’s day? Mr C.J. Barnett: Why not call it diesel? Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
Mr E.S. RIPPER: Does the Leader of the Opposition think that because he does not like the word “diesel” the people of Western Australia should be without power on a very hot summer’s day? Mr C.J. Barnett: Why not call it diesel? Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
Mr C.J. Barnett: Why not call it diesel? Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
Mr E.S. RIPPER: For heaven’s sake. There was a failure to provide power. I am now talking about a potential solution for the one day in 10 or 20 years when there might be a problem, and the Leader of the Opposition sneers and says “diesel”. He should get his priorities right. Does he care about the people of Western Australia or does he not? We are putting on an additional 200 megawatts not based on gas to insure against the circumstances we face. We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.
We can do much more in this State through the cooperation of all players in the energy sector on demand management. The Government and Western Power will be convening a forum of energy sector users in Western Australia, so that we can get in place additional levels of re-insurance for those one in 50 year weather events, in addition to the Wesfarmers’ gas swap arrangement. It is never possible when dealing with machinery to give an absolute guarantee. However, very significant steps have been taken to deal with exactly the problem we experienced on 18 February.

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