❓ Dr. Thomas questions the Energy Minister about a $780 million electricity subsidy. The Minister explains it's a community service order to cover the difference between the cost of electricity generation and the price consumers pay, primarily benefiting Synergy and Verve Energy.
AnsweredQoN 164Legislative Assembly
QuestionView source ↗
VERVE ENERGY — SUBSIDY 164. Dr S.C. THOMAS to the Minister for Energy: I refer to the Premier’s media release of Friday, 4 April and his announcement of a $780 million “subsidy for electricity consumers”, starting with $273 million in 2009-10. (1) To whom will this subsidy be paid and when? (2) On what specifically will the subsidy be spent? (3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN
AnswerView source ↗
(1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
VERVE ENERGY — SUBSIDY
I refer to the Premier’s media release of Friday, 4 April and his announcement of a $780 million “subsidy for electricity consumers”, starting with $273 million in 2009-10. (1) To whom will this subsidy be paid and when? (2) On what specifically will the subsidy be spent? (3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(1) To whom will this subsidy be paid and when? (2) On what specifically will the subsidy be spent? (3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(2) On what specifically will the subsidy be spent? (3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
VERVE ENERGY — SUBSIDY
I refer to the Premier’s media release of Friday, 4 April and his announcement of a $780 million “subsidy for electricity consumers”, starting with $273 million in 2009-10. (1) To whom will this subsidy be paid and when? (2) On what specifically will the subsidy be spent? (3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(1) To whom will this subsidy be paid and when? (2) On what specifically will the subsidy be spent? (3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(2) On what specifically will the subsidy be spent? (3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(3) Will any of this subsidy be spent on capital, including new works, or on paying off the debt apportioned to Verve Energy; and, if so, how much? (4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(4) How much debt will Verve Energy carry after this expenditure of $780 million? Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN replied: (1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
(1)-(4) The $780 million community service order that the Premier announced on Friday — Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Several members interjected. The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : Order, members! I am sure the minister does not need the assistance from either side of the chamber to answer the question. Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : The $780 million CSO, which, as indicated by the member, is to be paid over three years in tranches, is effectively the difference between how much it costs — Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Several members interjected. The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : Order, members! Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Several members interjected. The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : I call the member for Roe and the member for Cottesloe to order. Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : It is very simple. It is the difference between how much it costs to generate electricity, transmit it through wires, retail it and put it in our light or power sockets and how much we pay for it. Members should read the report and look at the cost. It is the difference between how much it costs to deliver power from the generator into our power plugs — Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Dr S.C. Thomas : Is it going to Synergy or Western Power networks? Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : Just listen; I am answering the member’s question. He is asking what it is. It is the cost differential between how much it costs to generate and deliver power and how much we pay for it. Therefore, we are providing a subsidy to householders, to electricity users, to add to what they pay to make the generator, the network provider and the retailer whole in the cost of delivering power. That is what it is. It is a community service order to make up the price differential. Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Dr S.C. Thomas : Who is the money going to? Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : As it says in the report, the money is going to Synergy. Why? It is going to Synergy because that is the retailer that buys electricity from the market. Who is going to benefit most out of the CSO in terms of when the money is paid? Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Several members interjected. The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : Order, members! Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : Mr Speaker, I am trying to explain this in very simple terms — Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr J.H.D. Day interjected. The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
The SPEAKER : Order, member for Darling Range! Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : — for members opposite because they do not seem to understand. They have not read the report and they do not seem to understand so I am trying to explain it in very simple terms for them. It is the price differential between the cost of generation and the price that we pay for power. It goes to Synergy. Synergy stands in the marketplace as the retailer purchasing energy. The biggest deliverer of energy into the marketplace is Verve Energy. It is the biggest gorilla in the marketplace. Therefore, when the money is paid out to make those companies whole, Verve will get the bulk of it. Why? It will get the bulk of the money not because the government is bailing out Verve, but because it is the biggest generator of electricity in the marketplace. Of course, it will benefit from the majority of the money, but that does not mean to say that it will be the only provider to benefit. If private providers in the marketplace deliver power and it costs them more to deliver power than is returned to them, they also will receive part of that money. That is what a CSO is. Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Dr S.C. Thomas : How much is going back to Verve? Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : It will depend on how much it delivers to Synergy. It will depend on how much it delivers into the marketplace. It will depend on how much Synergy buys. It is a CSO to the retailer to ensure that everybody in the marketplace stays whole in the cost of delivering electricity. It will mean that Verve, as the biggest provider of electricity, and other private providers in the marketplace will stay whole in the cost of delivering energy. It will mean that Western Power also will stay whole. That is what it costs to deliver power to us. Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Dr S.C. Thomas : Will private providers get any? Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
Mr F.M. LOGAN : The member should listen. The CSO is a subsidy to householders. Unfortunately, this was not understood by The West Australian , which reported that it was a bailout of Verve, and the member has just repeated that. It is not. It is a subsidy of the cost of delivering electricity to householders.
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