Regions win in State Government electricity reform

30/10/03
Karratha is to be the home of the planned new Government-owned Regional Power Corporation.
Energy Minister Eric Ripper today announced the energy utility, to be set up in 2004, would be dedicated to delivering reliable and affordable electricity to Western Australian households and businesses not connected to the main South-West power grid.
"For the first time, regional customers will have their own energy utility, based in a regional centre, and with regional customers getting undivided attention," Mr Ripper said.
"This demonstrates the Government's commitment to delivering better standards of service to regional Western Australians."
The Minister ended months of speculation about the likely location of the new corporation as he introduced legislation into State Parliament to set it up. The move was a key part of the Government's electricity market reforms, which would see Western Power divided into four publicly owned corporations covering regional power, power lines, generation and retail.
The proposed new laws, which were yet to win Liberal and National Party support, required the corporation's chief executive officer to live in Karratha, along with most of the senior management.
Other staff would be located across the State, with boosted staffing levels in Carnarvon, Broome, Kununurra and Esperance.
Mr Ripper paid tribute to Burrup MLA Fred Riebeling, who mounted a compelling case for Karratha as a strategic centre with commercial and social infrastructure and major industrial developments under way.
"This is a major coup for the Pilbara region," the Minister said.
"Now it's up to the Liberal and National parties to put regional interests first and vote in favour of the Government's legislative package."
Mr Ripper said new laws also required more than half the corporation's board to be residents of an area serviced by Regional Power.
"This is about shifting decision-making and management to where the issues are. Regional decision making will deliver better results for regional customer," he said.
"There are many challenges in delivering regional power supplies, including improving supplies to Aboriginal and other remote communities."
Mr Ripper said there were a series of other regional benefits from the electricity reforms including greater private sector investment in power generation, allowing the Government to spend more on network improvements.
The reforms would also:

• guarantee electricity price equality through price caps backed by law;
• create an Energy Ombudsman to oversee the relationship between power retailers, distributors and small customers; and
• deliver more competitive power prices, making a more attractive place for industry to set up.

The Minister said delivering power outside of the main electricity grid, which stretched from Kalbarri to Albany and east to Kalgoorlie, was subsidised by about $50million a year.
"Under the new arrangements, Regional Power will continue to be subsidised so regional customers will continue to enjoy the uniform tariff," he said.
The jobs and conditions of Western Power workers - including maintenance of wages and entitlements - will be protected in the legislation.
The broad reform plan was a Government election promise, which will be delivered through the introduction of the legislation. An independent electricity reform task force consulted widely with industry and consumer groups throughout WA to draw up specific recommendations.
It examined experience in other States and around the world to design a reform model suited to WA conditions.
Minister's office: 9222 8788