Opening up of Western Power's distribution system

1/7/97

The first step in the deregulation of Western Australia's electricity distribution system comes into force today, further opening up the State's energy sector to third party competitors.

Energy Minister Colin Barnett said that from today, companies with an average load of at least 87,600 megawatt hours (MWh) at a single site would be able to access Western Power's distribution system.

Mr Barnett said that the opening up of Western Power's distribution system followed the introduction of open access to Western Power's high voltage transmission system (66 kilovolts and above) on January 1 this year.

"Under the new conditions, large electricity consumers will be free to enter into contracts with either Western Power or private sector generators to purchase electricity which could then be supplied via Western Power's distribution system," he said.

"Open access to the distribution system will provide for increased competition for the supply of bulk electricity to large industrial and mining companies."

Open access will be introduced in a staged process:

·      July 1, 1997 - to customers with an average load of at least 87,600 MWh at a single site;

·      July 1, 1998 - to customers in the Pilbara, eastern Goldfields and non-interconnected areas with an average load of at least 43,800 MWh at a single site; and -

·      July 1, 1999 - to all other customers with an average load of at least 43,800 MWh at a single site, including the above.

"Once fully in place, these arrangements will lead to 23 of Western Power's largest customers, subject to existing contracts, being eligible to negotiate directly with the electricity supplier of their choice," Mr Barnett said.

"The new access regime will also provide a stimulus to the development of more private sector generators, such as the Parkeston power station on the Goldfields.

"Meantime, the Government is committed to accelerating energy reform and has initiated a review aimed at determining the impact of further and faster reductions in electricity distribution access levels."

Media contact: Justine Whittome, (08) 9222 9699