WA electricity prices a handbrake on economy

25/2/04
Western Australian businesses and families would be condemned to high electricity prices for decades if the WA Liberals followed through on their plan to oppose the Government's electricity market reforms.
Energy Minister Eric Ripper said the Liberals' position would damage the economy, drive away investment and cost jobs.
Mr Ripper said the Liberals had failed to learn the lessons from the privatisation of the Dampier-to-Bunbury natural gas pipeline and wanted to privatise Western Power.
"The latest comments by the leader of the Opposition exposes the Liberals true agenda - they want to fatten the cow for market," he said.
The Minister said Western Australians would not tolerate the sale of all or part of an essential service like electricity.
"Only the Government is offering a reform package that will keep Western Power and its successor entities in public ownership," he said.
Mr Ripper released a new report showing WA businesses paid the highest electricity prices in Australia.
The report also revealed WA households paid 4.9 per cent more than the capital city average, with only Darwin and Adelaide recording worse results.
The report, compiled by the WA Office of Energy and based on data collected by the independent Electricity Supply Association of Australia, showed that WA businesses overall paid 19.4 per cent more for electricity than the capital city average, greater than all other States and Territories.
Small businesses paid 12.7 per cent more, while medium and large businesses paid 16.4 per cent and 20.5 per cent more than the capital city average.

Mr Ripper said the high cost of electricity in WA put a handbrake on the State's economic growth.
"If we are serious about long-term jobs and opportunities for Western Australians, then we have to reform our electricity system to introduce greater competition and downward pressure on prices," he said.
The Minister said the Government's electricity reform plan - due to be debated in the Legislative Council next month - was developed after extensive consultation and expert investigation.
Mr Ripper urged Green, Liberal and National Party MPs to listen to the views of business, the renewable energy industry, consumers and regional Western Australians who were the major beneficiaries of reform.
"They should consider the historic opportunity they now have to support reforms that will benefit the economy, attract investment and create thousands of jobs," he said.
"We must embrace a genuinely competitive, dynamic, robust electricity system rather than settle for an electricity market that disadvantages consumers and strangles investment and job creation.
"More competition is needed to put downward pressure on prices and open up opportunities for private investment in power generation, including renewable energy producers."
The Minister said the reform plans took account of interstate and international experience and were tailored to suit local conditions.
"The WA solution is to achieve greater competition while retaining full public ownership of energy utilities," he said.
"Privatisation is not the answer."
Independent analysis has suggested the benefits of reform would be an average 8.5 per cent cut in electricity prices, an increase in Gross State Product of up to $300million a year by 2010, and the creation of 2,900 new jobs.
The full report on electricity prices is available at http://www.eriu.energy.wa.gov.au (publications).
Minister's office: 9222 8788