Opposition questions a new power levy on energy companies, suggesting it will increase household power prices despite a previous agreement to cap them. The Minister denies this, stating the levy will be absorbed by Western Power or be a minimal cost to consumers.

AnsweredQoN 690Legislative Assembly
Asked
10 November 2005
Portfolio
Consumer and Employment Protection

QuestionView source ↗

I refer to the government’s decision to implement a multimillion dollar power levy on energy companies which, undoubtedly, will be passed on to householders. (1) Will the minister advise the proposed rate of this levy? (2) Will the minister give a guarantee that once the rate of this levy is struck it will not be increased each year to pad up the budget? (3) Given that Labor accepted the Liberal Party’s demands to cap power prices for retail and small business customers during the Western Power disaggregation debate, is this not just a tricky way of increasing power prices by stealth? Mr J.C. KOBELKE

AnswerView source ↗

I thank the Leader of the Opposition for the question. (1)-(3) I will start with the last part of the question. The government, through the Minister for Energy, has given a very clear commitment to cap the electricity power costs through Western Power. Mr M.J. Birney interjected. Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
(1) Will the minister advise the proposed rate of this levy? (2) Will the minister give a guarantee that once the rate of this levy is struck it will not be increased each year to pad up the budget? (3) Given that Labor accepted the Liberal Party’s demands to cap power prices for retail and small business customers during the Western Power disaggregation debate, is this not just a tricky way of increasing power prices by stealth? Mr J.C. KOBELKE replied: I thank the Leader of the Opposition for the question. (1)-(3) I will start with the last part of the question. The government, through the Minister for Energy, has given a very clear commitment to cap the electricity power costs through Western Power. Mr M.J. Birney interjected. Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
(2) Will the minister give a guarantee that once the rate of this levy is struck it will not be increased each year to pad up the budget? (3) Given that Labor accepted the Liberal Party’s demands to cap power prices for retail and small business customers during the Western Power disaggregation debate, is this not just a tricky way of increasing power prices by stealth? Mr J.C. KOBELKE replied: I thank the Leader of the Opposition for the question. (1)-(3) I will start with the last part of the question. The government, through the Minister for Energy, has given a very clear commitment to cap the electricity power costs through Western Power. Mr M.J. Birney interjected. Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
(3) Given that Labor accepted the Liberal Party’s demands to cap power prices for retail and small business customers during the Western Power disaggregation debate, is this not just a tricky way of increasing power prices by stealth? Mr J.C. KOBELKE replied: I thank the Leader of the Opposition for the question. (1)-(3) I will start with the last part of the question. The government, through the Minister for Energy, has given a very clear commitment to cap the electricity power costs through Western Power. Mr M.J. Birney interjected. Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr J.C. KOBELKE replied: I thank the Leader of the Opposition for the question. (1)-(3) I will start with the last part of the question. The government, through the Minister for Energy, has given a very clear commitment to cap the electricity power costs through Western Power. Mr M.J. Birney interjected. Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
I thank the Leader of the Opposition for the question. (1)-(3) I will start with the last part of the question. The government, through the Minister for Energy, has given a very clear commitment to cap the electricity power costs through Western Power. Mr M.J. Birney interjected. Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
(1)-(3) I will start with the last part of the question. The government, through the Minister for Energy, has given a very clear commitment to cap the electricity power costs through Western Power. Mr M.J. Birney interjected. Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr M.J. Birney interjected. Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr J.C. KOBELKE : The Leader of the Opposition can make his comments; I am answering his question. The fact is that commitment has been made and that commitment will be delivered on. Therefore, that means the largest contribution to the safety levy will be from Western Power and that will be paid out of the consolidated fund by way of forgone earnings by Western Power. Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr M.J. Birney : Is not the minister aware that it can be imposed by way of a special fee on householders? Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr J.C. KOBELKE : That is not the way it works. Perhaps the Leader of the Opposition should look at the legislation. The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
The industry has paid the cost of energy for decades, until a short time ago, when the State Energy Commission of Western Australia was split into Western Power and Alinta, and we now have, because of the legislation that was passed, the potential for a dynamic energy market. A range of different players will be involved. Therefore, this mechanism will see players, as they gain a larger market share or as their share is reduced, have their contribution, by way of the levy, adjusted accordingly. The rate will be set by that process through a business plan that will be tabled in this Parliament. It will give greater transparency to the way the levy - Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr M.J. Birney : It is a way of putting up power prices. Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr E.S. Ripper : It is not. Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Several members interjected. Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr J.C. KOBELKE : Clearly, the member has asked a question based on a wrong assumption. He started his question by referring to multimillion dollars. If he had read the speech he would know we are talking about $4.4 million across both electricity and gas. He should also recognise that it is a levy on the company. Western Power will pay by far the largest contribution to that levy. Western Power is a government-owned company. If its price to customers is not increased, it means there will have to be greater efficiencies introduced to cover it, otherwise a reduced profit will be paid as a dividend into the consolidated fund. Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr M.J. Birney : Are you aware that I am in possession of a letter from AlintaGas saying that it will be forced to charge this levy, by way of a special fee, to householders? Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr J.C. KOBELKE : It is suggesting that it would do that to give the government bad publicity. It is not required to do it. Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr M.J. Birney : That is what it is saying it will do. Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr J.C. KOBELKE : The issue then is that AlintaGas will say it will put an extra 5c on household bills to pay for the energy safety levy. It will be cents per residential customer; we are talking about cents. It is a matter of whether the energy provider will absorb that cost, which is quite small compared with the overall cost. If it wants to pass it on to its customers - Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Several members interjected. Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr E.S. Ripper : They won’t go up. Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr M.J. Birney : He just said it will go up. Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.
Mr J.C. KOBELKE : If it wants to pass on the cost to its customers, by way of 3c or 4c, as a way of making a political protest, it is open for it to do that. The levy will not be an increase in terms of the cost to customers.

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