❓ Hon Robin Chapple questions Western Power's renewable energy project tendering and pricing, highlighting concerns about cost-effectiveness and market competition. The Minister responds by emphasizing the need for private investment and market reform, assuring tariff oversight.
AnsweredQoN 623Legislative Council
QuestionView source ↗
(1) Western Power’s own renewable projects are not open to public tenders. How does Western Power ensure the projects are at best cost?
(2) Western Power’s renewable capacity is not available to independent retailers. Without retail competition, how can the public ensure that the delivered cost of renewable is at the most competitive level?
(3) Can the Minister describe what mechanisms are in place to prevent Western Power from retaining a large margin on renewable energy, instead of offering low cost renewable energy to raise community support for renewable?
(2) Western Power’s renewable capacity is not available to independent retailers. Without retail competition, how can the public ensure that the delivered cost of renewable is at the most competitive level?
(3) Can the Minister describe what mechanisms are in place to prevent Western Power from retaining a large margin on renewable energy, instead of offering low cost renewable energy to raise community support for renewable?
AnswerView source ↗
Answered
25 June 2002
Responded by
Minister for Housing and Works representing the Minister for Energy
Response time
47 days
(2) To ensure the public that renewable energy is available at the most competitive price to the public, requires that privately financed and owned renewable energy plants are established. It also requires that private retailers are able to market this capacity. It is not sufficient to only have private retailers active in the market. There must also be competitive sources of renewable energy supply. To achieve this requires network access arrangements that support the operation of renewable energy plants and a market structure that supports bilateral contracts for sale of the energy. The Government is currently working to develop the former, while the latter is the subject of the considerations of the Electricity Reform Task Force. The Government accepts that electricity reform is necessary to ensure that the delivered cost of renewable energy is at the most competitive level. (3) Ministerial approval is required for any changes to tariffs or for new tariffs to be established. Ministerial approval would not be provided for a tariff based on renewable energy that included an excessive margin on the underlying cost of renewable energy.
To achieve this requires network access arrangements that support the operation of renewable energy plants and a market structure that supports bilateral contracts for sale of the energy. The Government is currently working to develop the former, while the latter is the subject of the considerations of the Electricity Reform Task Force. The Government accepts that electricity reform is necessary to ensure that the delivered cost of renewable energy is at the most competitive level. (3) Ministerial approval is required for any changes to tariffs or for new tariffs to be established. Ministerial approval would not be provided for a tariff based on renewable energy that included an excessive margin on the underlying cost of renewable energy.
The Government accepts that electricity reform is necessary to ensure that the delivered cost of renewable energy is at the most competitive level. (3) Ministerial approval is required for any changes to tariffs or for new tariffs to be established. Ministerial approval would not be provided for a tariff based on renewable energy that included an excessive margin on the underlying cost of renewable energy.
(3) Ministerial approval is required for any changes to tariffs or for new tariffs to be established. Ministerial approval would not be provided for a tariff based on renewable energy that included an excessive margin on the underlying cost of renewable energy.
To achieve this requires network access arrangements that support the operation of renewable energy plants and a market structure that supports bilateral contracts for sale of the energy. The Government is currently working to develop the former, while the latter is the subject of the considerations of the Electricity Reform Task Force. The Government accepts that electricity reform is necessary to ensure that the delivered cost of renewable energy is at the most competitive level. (3) Ministerial approval is required for any changes to tariffs or for new tariffs to be established. Ministerial approval would not be provided for a tariff based on renewable energy that included an excessive margin on the underlying cost of renewable energy.
The Government accepts that electricity reform is necessary to ensure that the delivered cost of renewable energy is at the most competitive level. (3) Ministerial approval is required for any changes to tariffs or for new tariffs to be established. Ministerial approval would not be provided for a tariff based on renewable energy that included an excessive margin on the underlying cost of renewable energy.
(3) Ministerial approval is required for any changes to tariffs or for new tariffs to be established. Ministerial approval would not be provided for a tariff based on renewable energy that included an excessive margin on the underlying cost of renewable energy.
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