Restrictions on electricity suppliers offering gas have been further relaxed by the state government, creating more competition for Alinta at the small-to-medium end of the market.
Restrictions on electricity suppliers offering gas have been further relaxed by the state government, creating more competition for Alinta at the small-to-medium end of the market.
About 2000 businesses are likely to be affected.
Under changes announced today by Energy Minister Francis Logan, state-owned corporations Synergy and Verve Energy which were formed as a result of the break-up of electricity monopoly Western Power, will both have great access to gas market customers.
From July 1, 2007, the restrictions on the size of customer allowed has been completely dropped in the case of Verve, while the minimum threshold for Synergy has been dropped to 180 gigajoules. Previously both could not have customers who bought less than one terrajoule of gas per year.
The Minister said the changes would apply to customers with an average gas bill of between $4,000-$9,000, and include small businesses like some restaurants, bakeries and metal fabrication plants.
He also announced the appointment of four electricity customers to a ministerial committee that is being set up to provide independent advice on the adequacy of power supplies in regional and metropolitan areas.
The appointees are:
Patricia Fallen, of Rossmoyne;
Judy Harper, of Broome;
George Gallen, retired former Western Power employee of Kallaroo; and
Allan Henshaw, former Toodyay shire president.
The Minister said he was very pleased with the quality of applicants who had responded to his call to join the committee.
Mr Logan said three business people would soon be appointed to the committee and the first meeting was expected next month.
"These appointees will play a key role as consumers in providing direct feedback on electricity supply quality and reliability standards," he said.
The full releases from the state government and Synergy are below:
More customers will have more gas supply choices under changes announced today by Energy Minister Francis Logan.
Mr Logan said supply thresholds would be reduced to allow Synergy and Verve Energy to sell gas to more customers from July 1, 2007.
The Minister said the changes would apply to customers with an average gas bill of between $4,000-$9,000, and include small businesses like some restaurants, bakeries and metal fabrication plants.
"Supply thresholds were imposed on the former Western Power Corporation to prevent it from exercising a competitive advantage over other retailers in the gas market, following the implementation of full retail contestability in gas in 2004," he said.
"These thresholds were transferred to Synergy and Verve Energy upon the disaggregation of Western Power Corporation in April 2006.
"I have approved the recommendation to lower this threshold on Synergy from one terajoule per annum to 0.18 terajoules.
"This will allow Synergy to supply gas to customers with annual gas bills of more than $4,000 - giving greater choice to about 2,000 additional energy consumers in Western Australia."
Mr Logan said the threshold would be lifted entirely from Verve Energy but, because of their focus on electricity generation, it was unlikely they would seek to retail gas in the near future.
The Minister said the changes were made following an extensive public consultation process.
"The Carpenter Government will continue to investigate further initiatives to promote competition in gas and electricity markets, where appropriate," he said.
Mr Logan made the announcement during his keynote speech to the Energy in WA Conference 2006.
He also announced the appointment of four electricity customers to a ministerial committee that is being set up to provide independent advice on the adequacy of power supplies in regional and metropolitan areas.
The appointees are:
Patricia Fallen, of Rossmoyne;
Judy Harper, of Broome;
George Gallen, retired former Western Power employee of Kallaroo; and
Allan Henshaw, former Toodyay shire president.
The Minister said he was very pleased with the quality of applicants who had responded to his call to join the committee.
Mr Logan said three business people would soon be appointed to the committee and the first meeting was expected next month.
"These appointees will play a key role as consumers in providing direct feedback on electricity supply quality and reliability standards," he said.
"I expect the committee to identify issues associated with standards of electricity supply, comment on the effectiveness of consumer protection mechanisms and advise on existing or emerging issues with electricity supply standards.
"It will be invaluable to have the input of domestic customers who deal with the impact of electricity supply issues on a daily basis.
"Consumers rightly expect a secure and reliable electricity supply, and we must have effective standards and consumer protection systems in place to ensure this is delivered."
Below is a release from Synergy:
Western Australia's new energy retailer, Synergy, has welcomed today's announcement by the Minister for Energy, Hon Fran Logan, that Synergy could sell gas to consumers of 180GJ (or more) of gas per annum.
Synergy Managing Director, Jim Mitchell said while gas supplies were limited, Synergy would do all it could to provide a more competitive environment for gas consumers of more than 180GJ per annum.
"Until now, we have only been able to sell to customers consuming greater than one terajoule per annum. That has now been reduced to 180GJ, meaning Synergy can offer dual-fuel - gas and electricity - to another 1,500 to 2,000 customers."
Mr Mitchell said it was important there was long-term certainty of natural gas supply for Western Australia for the market to be truly competitive.
"We're confident we can be very competitive in this market, not only on price, but by being able to offer a suite of energy products which add value for customers."
Background:
Synergy is Western Australia's principal energy retailer in Western Australia and serves its corporate, business and residential customers located throughout the SWIS.
