State protects public ownership of Western Power

26/10/03
The State Government will move to protect public ownership of Western Power as part of a package of sweeping electricity industry reforms to be introduced into State Parliament this week.
Energy Minister Eric Ripper said the Government's legislation to divide Western Power into four separate publicly owned corporations aimed to increase competition in the electricity market, attract private sector investment and create more jobs.
But the Government would also ensure the four separate corporations - covering retail, power generation, power lines and regional supply - remained in Government ownership by legislating to provide maximum protection against being sold off by a future Government.
"No future Government will be able to sell off all or part of Western Power by stealth. It would require the approval of both Houses of Parliament, giving Western Power and its successor entities the same protection as national parks," Mr Ripper said.
The legislation provides that the new public corporations cannot dispose of any asset worth more than $100million, or five per cent of the asset base of the corporation, such as a power station. Disposal orders made by any Minister will be disallowable by Parliament.
In addition it also requires Ministerial approval for any transaction greater than $20million or one per cent of the value of the corporation's asset base. This includes the disposal of any asset.
Mr Ripper said the Government wanted greater competition for the good of the State's economy, but was implacably opposed to privatisation.
"Privatisation does not achieve true competition," he said.
"It simply turns a public monopoly into a private monopoly, which fails to address the structural problems blocking new entrants - including renewable energy suppliers - from competing in the energy market.
"The Gallop Government's reform plans will achieve competition while maintaining public ownership of the energy utilities. It balances development of the economy with strong regulation to protect consumers."
Consumer protection measures included:

• continuing the policy of electricity price equality through price caps backed by law;
• creation of an Energy Ombudsman to oversee the relationship between power retailers, distributors and small customers;
• creation of a customer service code and standard customer contracts; and
• licensing of new private sector entrants to the electricity market.

The broad reform plan was a Government election promise, which will be delivered through the introduction of the legislation. An independent electricity reform taskforce consulted widely with industry and consumer groups to draw up specific recommendations.
It examined experience in other States and around the world to design a reform model suited to Western Australian conditions.
Deputy Premier's office: 9222 8788