Question on electricity tariffs and Verve Energy's financial advantage from price rises, subsidies, and cheaper fuel. The Premier avoids providing specific details, questioning the opposition's motives and criticising their understanding of the situation.

AnsweredQoN 226Legislative Assembly
Asked
8 May 2008
Portfolio
Premier

QuestionView source ↗

ELECTRICITY TARIFFS — VERVE ENERGY
I refer to the Premier’s answer to my question yesterday in relation to the Frontier Economics report of April 2008 entitled “Electricity Retail Market Review — Electricity Tariffs”, which the government is using to support significant electricity price increases and the injection of $780 million of taxpayers’ money into Verve Energy. (1) How much will Verve Energy save per annum by locking in 20-year coal prices from 2010 “at $30 a tonne compared with the old price of $65 a tonne”? (2) What impact will those savings make on the profit and loss statement for Verve Energy? (3) Given that the Premier admitted yesterday that the proposed tariff increases were set based on coal market prices for private generators, despite Verve Energy supplying 100 per cent of the uncontestable market, which will pay the increase until after prices start rising, what is the total financial advantage Verve Energy will now gain from the government’s electricity price rises, the $780 million subsidy and cheaper fuel prices? Mr A.J. CARPENTER

AnswerView source ↗

(1)-(3) I thank the member for the question. He has requested some fairly specific detail. Let me put it this way. Does the member or anybody else in this chamber honestly think that this government would be telling the people of Western Australia that electricity prices will have to rise by a massive amount if it did not really have to do so? Does anybody really think that we would do that? Does anybody really think that we would do that, not after an election, but now, in advance of an election? Under the opposition’s schemata, the government could have sat mum and said nothing until after the next election and then pulled a swiftie, which is what the opposition is accusing us of doing. What a bizarre swiftie that would be! Imagine me going home to my house in Melville and hearing my neighbours in Sergeant Road say, “Hey, listen. You’re telling us that we’ll have to pay an increase of 47 per cent in one hit, but it’s not necessary. You’re going to slug us for up to an extra 72 per cent in electricity costs, Carpenter, but there’s a very clever man on the opposition side who has told us that you don’t need to do it. We’re not going to vote for you.” Dr S.C. Thomas : What are you frightened of? Mr A.J. CARPENTER : What am I frightened of? I would not call it fear, but what concerns me is the incredible ignorance that belies this line of questioning. I cannot provide — Point of Order Mr C.J. BARNETT : The word “lies” was used in reference to the shadow Treasurer. Indeed, Mr Speaker, given your recent rulings, that is clearly out of order. Mr J.C. KOBELKE : It may be practice for the member for Cottesloe to misrepresent what people said, but the Premier did not use that word and it is unfortunate that the member for Cottesloe should assert that people say things that they never said. The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.
(1) How much will Verve Energy save per annum by locking in 20-year coal prices from 2010 “at $30 a tonne compared with the old price of $65 a tonne”? (2) What impact will those savings make on the profit and loss statement for Verve Energy? (3) Given that the Premier admitted yesterday that the proposed tariff increases were set based on coal market prices for private generators, despite Verve Energy supplying 100 per cent of the uncontestable market, which will pay the increase until after prices start rising, what is the total financial advantage Verve Energy will now gain from the government’s electricity price rises, the $780 million subsidy and cheaper fuel prices? Mr A.J. CARPENTER replied: (1)-(3) I thank the member for the question. He has requested some fairly specific detail. Let me put it this way. Does the member or anybody else in this chamber honestly think that this government would be telling the people of Western Australia that electricity prices will have to rise by a massive amount if it did not really have to do so? Does anybody really think that we would do that? Does anybody really think that we would do that, not after an election, but now, in advance of an election? Under the opposition’s schemata, the government could have sat mum and said nothing until after the next election and then pulled a swiftie, which is what the opposition is accusing us of doing. What a bizarre swiftie that would be! Imagine me going home to my house in Melville and hearing my neighbours in Sergeant Road say, “Hey, listen. You’re telling us that we’ll have to pay an increase of 47 per cent in one hit, but it’s not necessary. You’re going to slug us for up to an extra 72 per cent in electricity costs, Carpenter, but there’s a very clever man on the opposition side who has told us that you don’t need to do it. We’re not going to vote for you.” Dr S.C. Thomas : What are you frightened of? Mr A.J. CARPENTER : What am I frightened of? I would not call it fear, but what concerns me is the incredible ignorance that belies this line of questioning. I cannot provide — Point of Order Mr C.J. BARNETT : The word “lies” was used in reference to the shadow Treasurer. Indeed, Mr Speaker, given your recent rulings, that is clearly out of order. Mr J.C. KOBELKE : It may be practice for the member for Cottesloe to misrepresent what people said, but the Premier did not use that word and it is unfortunate that the member for Cottesloe should assert that people say things that they never said. The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.
(2) What impact will those savings make on the profit and loss statement for Verve Energy? (3) Given that the Premier admitted yesterday that the proposed tariff increases were set based on coal market prices for private generators, despite Verve Energy supplying 100 per cent of the uncontestable market, which will pay the increase until after prices start rising, what is the total financial advantage Verve Energy will now gain from the government’s electricity price rises, the $780 million subsidy and cheaper fuel prices? Mr A.J. CARPENTER replied: (1)-(3) I thank the member for the question. He has requested some fairly specific detail. Let me put it this way. Does the member or anybody else in this chamber honestly think that this government would be telling the people of Western Australia that electricity prices will have to rise by a massive amount if it did not really have to do so? Does anybody really think that we would do that? Does anybody really think that we would do that, not after an election, but now, in advance of an election? Under the opposition’s schemata, the government could have sat mum and said nothing until after the next election and then pulled a swiftie, which is what the opposition is accusing us of doing. What a bizarre swiftie that would be! Imagine me going home to my house in Melville and hearing my neighbours in Sergeant Road say, “Hey, listen. You’re telling us that we’ll have to pay an increase of 47 per cent in one hit, but it’s not necessary. You’re going to slug us for up to an extra 72 per cent in electricity costs, Carpenter, but there’s a very clever man on the opposition side who has told us that you don’t need to do it. We’re not going to vote for you.” Dr S.C. Thomas : What are you frightened of? Mr A.J. CARPENTER : What am I frightened of? I would not call it fear, but what concerns me is the incredible ignorance that belies this line of questioning. I cannot provide — Point of Order Mr C.J. BARNETT : The word “lies” was used in reference to the shadow Treasurer. Indeed, Mr Speaker, given your recent rulings, that is clearly out of order. Mr J.C. KOBELKE : It may be practice for the member for Cottesloe to misrepresent what people said, but the Premier did not use that word and it is unfortunate that the member for Cottesloe should assert that people say things that they never said. The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.
(3) Given that the Premier admitted yesterday that the proposed tariff increases were set based on coal market prices for private generators, despite Verve Energy supplying 100 per cent of the uncontestable market, which will pay the increase until after prices start rising, what is the total financial advantage Verve Energy will now gain from the government’s electricity price rises, the $780 million subsidy and cheaper fuel prices? Mr A.J. CARPENTER replied: (1)-(3) I thank the member for the question. He has requested some fairly specific detail. Let me put it this way. Does the member or anybody else in this chamber honestly think that this government would be telling the people of Western Australia that electricity prices will have to rise by a massive amount if it did not really have to do so? Does anybody really think that we would do that? Does anybody really think that we would do that, not after an election, but now, in advance of an election? Under the opposition’s schemata, the government could have sat mum and said nothing until after the next election and then pulled a swiftie, which is what the opposition is accusing us of doing. What a bizarre swiftie that would be! Imagine me going home to my house in Melville and hearing my neighbours in Sergeant Road say, “Hey, listen. You’re telling us that we’ll have to pay an increase of 47 per cent in one hit, but it’s not necessary. You’re going to slug us for up to an extra 72 per cent in electricity costs, Carpenter, but there’s a very clever man on the opposition side who has told us that you don’t need to do it. We’re not going to vote for you.” Dr S.C. Thomas : What are you frightened of? Mr A.J. CARPENTER : What am I frightened of? I would not call it fear, but what concerns me is the incredible ignorance that belies this line of questioning. I cannot provide — Point of Order Mr C.J. BARNETT : The word “lies” was used in reference to the shadow Treasurer. Indeed, Mr Speaker, given your recent rulings, that is clearly out of order. Mr J.C. KOBELKE : It may be practice for the member for Cottesloe to misrepresent what people said, but the Premier did not use that word and it is unfortunate that the member for Cottesloe should assert that people say things that they never said. The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.
Mr A.J. CARPENTER replied: (1)-(3) I thank the member for the question. He has requested some fairly specific detail. Let me put it this way. Does the member or anybody else in this chamber honestly think that this government would be telling the people of Western Australia that electricity prices will have to rise by a massive amount if it did not really have to do so? Does anybody really think that we would do that? Does anybody really think that we would do that, not after an election, but now, in advance of an election? Under the opposition’s schemata, the government could have sat mum and said nothing until after the next election and then pulled a swiftie, which is what the opposition is accusing us of doing. What a bizarre swiftie that would be! Imagine me going home to my house in Melville and hearing my neighbours in Sergeant Road say, “Hey, listen. You’re telling us that we’ll have to pay an increase of 47 per cent in one hit, but it’s not necessary. You’re going to slug us for up to an extra 72 per cent in electricity costs, Carpenter, but there’s a very clever man on the opposition side who has told us that you don’t need to do it. We’re not going to vote for you.” Dr S.C. Thomas : What are you frightened of? Mr A.J. CARPENTER : What am I frightened of? I would not call it fear, but what concerns me is the incredible ignorance that belies this line of questioning. I cannot provide — Point of Order Mr C.J. BARNETT : The word “lies” was used in reference to the shadow Treasurer. Indeed, Mr Speaker, given your recent rulings, that is clearly out of order. Mr J.C. KOBELKE : It may be practice for the member for Cottesloe to misrepresent what people said, but the Premier did not use that word and it is unfortunate that the member for Cottesloe should assert that people say things that they never said. The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.
(1)-(3) I thank the member for the question. He has requested some fairly specific detail. Let me put it this way. Does the member or anybody else in this chamber honestly think that this government would be telling the people of Western Australia that electricity prices will have to rise by a massive amount if it did not really have to do so? Does anybody really think that we would do that? Does anybody really think that we would do that, not after an election, but now, in advance of an election? Under the opposition’s schemata, the government could have sat mum and said nothing until after the next election and then pulled a swiftie, which is what the opposition is accusing us of doing. What a bizarre swiftie that would be! Imagine me going home to my house in Melville and hearing my neighbours in Sergeant Road say, “Hey, listen. You’re telling us that we’ll have to pay an increase of 47 per cent in one hit, but it’s not necessary. You’re going to slug us for up to an extra 72 per cent in electricity costs, Carpenter, but there’s a very clever man on the opposition side who has told us that you don’t need to do it. We’re not going to vote for you.” Dr S.C. Thomas : What are you frightened of? Mr A.J. CARPENTER : What am I frightened of? I would not call it fear, but what concerns me is the incredible ignorance that belies this line of questioning. I cannot provide — Point of Order Mr C.J. BARNETT : The word “lies” was used in reference to the shadow Treasurer. Indeed, Mr Speaker, given your recent rulings, that is clearly out of order. Mr J.C. KOBELKE : It may be practice for the member for Cottesloe to misrepresent what people said, but the Premier did not use that word and it is unfortunate that the member for Cottesloe should assert that people say things that they never said. The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.
Mr A.J. CARPENTER : What am I frightened of? I would not call it fear, but what concerns me is the incredible ignorance that belies this line of questioning. I cannot provide — Point of Order Mr C.J. BARNETT : The word “lies” was used in reference to the shadow Treasurer. Indeed, Mr Speaker, given your recent rulings, that is clearly out of order. Mr J.C. KOBELKE : It may be practice for the member for Cottesloe to misrepresent what people said, but the Premier did not use that word and it is unfortunate that the member for Cottesloe should assert that people say things that they never said. The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.
Mr J.C. KOBELKE : It may be practice for the member for Cottesloe to misrepresent what people said, but the Premier did not use that word and it is unfortunate that the member for Cottesloe should assert that people say things that they never said. The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.
The SPEAKER : Listening to the Premier’s answer does not support what the member for Cottesloe said. I am sure the Premier knows what the rules are and will not contravene them. Questions without Notice Resumed Mr A.J. CARPENTER : I thank the member for Cottesloe, because he has inadvertently drawn my attention to the misapplication of the word “belies”. I did not say “lies”. I think the word should be “underlies”. Anyway, it is a pretty fearsome prospect that this sort of mentality is at work. The member for Capel should get out a bit. His question is based on an absolutely ridiculous premise.

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