A parliamentary question regarding the application of the Electricity Corporation Act 1994 to the decision to withdraw electricity supplies from Wittenoom and whether cabinet authorised the Minister's decision. The Minister states the Act did not apply and cites cabinet confidentiality.

AnsweredQoN 432Legislative Council
Asked
13 June 2006
Portfolio
Energy

QuestionView source ↗

WITTENOOM - WITHDRAWAL OF ELECTRICITY SUPPLIES
Perhaps I should ask whether the government has gone on holidays, but I will not. I refer to the statement made by the then Minister for Energy in the Legislative Assembly on Tuesday, 8 November 2005 about the power supply in Wittenoom. (1) Did section 67 of the Electricity Corporation Act 1994 apply to the Wittenoom decision; and, if not, why not? (2) Did cabinet authorise the minister to make the decision to direct Western Power - now Horizon Power - to not seek a licence to provide power to Wittenoom; and, if not, why not? Hon KIM CHANCE

AnswerView source ↗

I thank the member for some notice of this question. (1) No. Section 67 of the Electricity Corporation Act 1994 relates to directions contrary to the corporation’s commercial interests. While the direction for Horizon Power not to apply for a licence to operate in Wittenoom and thus withdraw services from the town is part of a wider government strategy to withdraw from Wittenoom for health and safety reasons, given that the cost of supply in the town is greater than the revenue derived from the sale of electricity, the direction was not contrary to the business’s commercial interests. (2) As the honourable Leader of the Opposition would be aware, cabinet deliberations remain confidential.
(1) Did section 67 of the Electricity Corporation Act 1994 apply to the Wittenoom decision; and, if not, why not? (2) Did cabinet authorise the minister to make the decision to direct Western Power - now Horizon Power - to not seek a licence to provide power to Wittenoom; and, if not, why not? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) No. Section 67 of the Electricity Corporation Act 1994 relates to directions contrary to the corporation’s commercial interests. While the direction for Horizon Power not to apply for a licence to operate in Wittenoom and thus withdraw services from the town is part of a wider government strategy to withdraw from Wittenoom for health and safety reasons, given that the cost of supply in the town is greater than the revenue derived from the sale of electricity, the direction was not contrary to the business’s commercial interests. (2) As the honourable Leader of the Opposition would be aware, cabinet deliberations remain confidential.
(2) Did cabinet authorise the minister to make the decision to direct Western Power - now Horizon Power - to not seek a licence to provide power to Wittenoom; and, if not, why not? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) No. Section 67 of the Electricity Corporation Act 1994 relates to directions contrary to the corporation’s commercial interests. While the direction for Horizon Power not to apply for a licence to operate in Wittenoom and thus withdraw services from the town is part of a wider government strategy to withdraw from Wittenoom for health and safety reasons, given that the cost of supply in the town is greater than the revenue derived from the sale of electricity, the direction was not contrary to the business’s commercial interests. (2) As the honourable Leader of the Opposition would be aware, cabinet deliberations remain confidential.
Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) No. Section 67 of the Electricity Corporation Act 1994 relates to directions contrary to the corporation’s commercial interests. While the direction for Horizon Power not to apply for a licence to operate in Wittenoom and thus withdraw services from the town is part of a wider government strategy to withdraw from Wittenoom for health and safety reasons, given that the cost of supply in the town is greater than the revenue derived from the sale of electricity, the direction was not contrary to the business’s commercial interests. (2) As the honourable Leader of the Opposition would be aware, cabinet deliberations remain confidential.
I thank the member for some notice of this question. (1) No. Section 67 of the Electricity Corporation Act 1994 relates to directions contrary to the corporation’s commercial interests. While the direction for Horizon Power not to apply for a licence to operate in Wittenoom and thus withdraw services from the town is part of a wider government strategy to withdraw from Wittenoom for health and safety reasons, given that the cost of supply in the town is greater than the revenue derived from the sale of electricity, the direction was not contrary to the business’s commercial interests. (2) As the honourable Leader of the Opposition would be aware, cabinet deliberations remain confidential.
(1) No. Section 67 of the Electricity Corporation Act 1994 relates to directions contrary to the corporation’s commercial interests. While the direction for Horizon Power not to apply for a licence to operate in Wittenoom and thus withdraw services from the town is part of a wider government strategy to withdraw from Wittenoom for health and safety reasons, given that the cost of supply in the town is greater than the revenue derived from the sale of electricity, the direction was not contrary to the business’s commercial interests. (2) As the honourable Leader of the Opposition would be aware, cabinet deliberations remain confidential.
(2) As the honourable Leader of the Opposition would be aware, cabinet deliberations remain confidential.

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