❓ A parliamentary question regarding a proposed electricity tariff reduction by the former Managing Director of Western Power, its potential cost, and a request for related correspondence. The Minister declines to table the correspondence citing cabinet confidentiality.
AnsweredQoN 1126Legislative Council
QuestionView source ↗
(1) Prior to his resignation, did the former Managing Director of Western Power recommend a reduction of the electricity tariff over a particular period; and, if so, what was the recommended reduction and period? (2) What would have been the cost to Western Power had the reduction been agreed to by the minister? (3) Will the minister table a copy of the former managing director’s correspondence in respect of the proposed tariff reduction; and, if not, why not? Hon KIM CHANCE
AnswerView source ↗
I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
(2) What would have been the cost to Western Power had the reduction been agreed to by the minister? (3) Will the minister table a copy of the former managing director’s correspondence in respect of the proposed tariff reduction; and, if not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
(3) Will the minister table a copy of the former managing director’s correspondence in respect of the proposed tariff reduction; and, if not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
Hon KIM CHANCE replied : I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
(1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
(3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
(2) What would have been the cost to Western Power had the reduction been agreed to by the minister? (3) Will the minister table a copy of the former managing director’s correspondence in respect of the proposed tariff reduction; and, if not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
(3) Will the minister table a copy of the former managing director’s correspondence in respect of the proposed tariff reduction; and, if not, why not? Hon KIM CHANCE replied : I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
Hon KIM CHANCE replied : I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
I thank the member for some notice of this question. (1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
(1) The possibility of a reduction in the L1 tariff was discussed publicly by Western Power’s former managing director and was subject to affordability and approval by the board of Western Power and the State Government. The proposed reduction was 10 per cent staged over a three-year period. It was decided not to proceed with the reduction ahead of the creation of a competitive market for the relevant group of customers and, in so doing, inhibit the development of desirable competition. (2) Once implemented, the proposed tariff reduction would have resulted in a $22 million per annum reduction in revenue to Western Power. (3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
(3) No. Any advice or discussion leading to any such decision is a confidential part of any cabinet decision.
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