WA must continue its energy reforms

16 November 2011

While the Western Australian Government’s progress in developing a Strategic Energy Initiative has been welcome, it’s time to finalise the process and for the Government to deliver and own a robust and enduring energy policy statement to guide both industry and energy users, according the Energy Supply Association of Australia.

esaa released its West Australian Energy Market Study 2 Year Update today at an Australian Institute of Energy breakfast in Perth.

In 2009 when esaa conducted its first review of the WA energy market, it found that strategic direction for energy policy was needed to strengthen the frameworks that govern Western Australia’s energy market. The Study set out a pathway of recommendations to an efficient Western Australian energy market.

This year’s Update assesses progress against those recommendations in the past two years.

esaa’s Interim CEO Clare Savage said the Association found positive progress has been made on a number of electricity and gas market reforms, such as the Market Evolution Program, the development of a Gas Bulletin Board and Statement of Opportunities.

“But the process of energy market reform in WA remains incomplete,” Ms Savage said.

“The Government now needs to build on its positive progress on difficult reform issues, such as restoring energy tariffs to cost reflective levels and instating independent price regulation.

“Further, a number of recent incidents have clouded the outlook for the energy industry, including decisions to block gas tariff rises without compensation to industry, and recent Government comments about reintegrating state-owned energy companies.

“esaa is calling on the Government to continue the process of disengaging from the market.” Ms Savage said.

(See esaa's study attached.)

Ends.

Media contact:            Caroline Page          0421 103 089

The Energy Supply Association of Australia seeks to positively influence government policy decisions to ensure that Australia enjoys the benefits of a safe, secure, reliable, sustainable and competitively priced electricity and natural gas supply.

esaa’s 40-plus member businesses have more than $120 billion in assets and infrastructure investment plans worth over $49 billion over the next five years. The Association is fuel and technology neutral and member businesses have investments across a wide range of fossil fuel and renewable generation technologies.

• WA Energy Market Study