Release of Energy Board of Review report

19/4/93

The State Government today released the Energy Board of Review report chaired by Sir Roderick Carnegie.

Energy Minister Colin Barnett said the Government supported the report's objectives to reduce energy prices by introducing more competition through a process of structural change.

"The Government and the Energy Board of Review both share the philosophy that there is an urgent need to create a more competitive and flexible energy system in the 1990s," Mr Barnett said.

Cabinet was today briefed by Sir Roderick about the Energy Board of Review (EBR) report - entitled 'The Energy Challenge for the 21st Century' - and will allow several weeks for public and industry comment.  The report and public comment will go back to Cabinet before the Government makes any final decisions.

The EBR, which was commissioned by the previous Government in February 1992, completed the report at a cost of $2.25 million - significantly less than its initial $4 million budget.

Mr Barnett said some of the recommendations were in line with Coalition policies, such as the report's suggestion to split SECWA into separate electricity and gas utilities.

"The EBR has presented a strong case for a further split of SECWA's electricity operations, although detailed changes will be a matter for the Government to decide as a part of the process," he said.

"Sir Roderick has made it clear that he believes the Collie power project should be delayed for a minimum of three years."

However, Mr Barnett said a smaller power station may be a better alternative than a long delay.

Mr Barnett said the report's recommendations regarding the North-West Shelf gas contracts could present a unique opportunity to create a deregulated energy market in the Pilbara and to achieve lower energy costs for what is Western Australia's most prospective area for industrial development.

"In addition to structural change, there is a clear message that much can also be done to achieve further efficiency in SECWA by such measures as creating flexible fuel contracts, contracting out services and work place efficiency," he said.

Mr Barnett said adopting such changes had the potential to create $160 million worth of savings.

Such reforms would lead to significant efficiency gains for the energy industry and would allow benefits to flow on to energy consumers in the form of lower energy costs.

"The Government will keep an open mind about the report and listen to the public and industry reaction before deciding on which direction the Government should take to introduce any such reforms," he said.

Media contact: Carolyn Vicars - 222 9699 / Pager 480 9193