Horizon beats subsidy cut target

State-owned regional power provider Horizon Power has recorded a $35.4 million net profit for the year to June, while hitting its targeted reduction of government subsidies more than a year ahead of time.

The net profit result was 3.4 per cent lower than in the 2016 financial year, while revenue was up $2.1 million to $492.5 million.

One major achievement has been the reduction of the entity’s government subsidies, a process that began after a strategic review in 2013.

The company had targeted a reduction of more than $100 million by the 2018 financial year, a milestone it had already surpassed, the company said.

The forecast subsidy for the 2018 financial year was $167 million, but would have been $272.5 million without enacting various reforms to reduce costs.

Part of the reduction had been achieved through introduction of smart meters, which the company expects will save $7 million per year.

Horizon is working towards developing microgrid systems in places such as Onslow, with that project to include solar, gas and improved technology to manage the system.

Horizon Power chief executive officer Frank Tudor said the company already had experience in microgrid management, with responsibility for 38 systems currently.

“Recognised as a test-bed of a new energy future that involves microgrids and distributed energy resources, Horizon Power is at the forefront of the world's electricity revolution,” he said.

“Because of its scale, renewable resources and population density, Western Australia is uniquely positioned to develop and deploy new energy solutions and capitalise on multi-billion dollar global opportunities over the coming decades.”

Mr Tudor said the overall result was positive.

“We are continually improving power supply and reducing the average time customers are without power,” he said.

“Our customer satisfaction levels have notably increased from the previous year, which shows we are on the right track.

“Highlights of our safety performance include zero lost time injuries in the Pilbara Grid operations and our primary contractor achieving one million hours working on Horizon Power projects without a recordable injury.”