A RECENT survey showing a steady decrease in WA’s business electricity costs has given WA monopoly electricity utility Western Power extra ammunition in its battle to remain a single entity.
A RECENT survey showing a steady decrease in WA’s business electricity costs has given WA monopoly electricity utility Western Power extra ammunition in its battle to remain a single entity.
Western Power general manager retail John Lillywhite said prices were improving in WA in relation to the rest of the nation and that the utility had plans for further price reductions.
“However, reform is an issue best left to government,” he said.
One of Western Power’s arguments has been that any proposed electricity reforms will have to better its own price performance.
The WA Government’s Electricity Reform Task Force – the body charged with deciding whether Western Power should be broken up – has been given a two-week extension to complete its final report.
The report was due to be handed to Energy Minister Eric Ripper by the end of September.
The ERTF is expected to recommend that Western Power be broken into separate generation, transmission and retail businesses.
The Electricity Supply Association of Australia’s 2002 edition of its Electricity Prices in Australia report showed that, since 1996-97, the cost of electricity for WA’s businesses has been increasing less slowly than the inflation rate – therefore decreasing in real terms.
ESAA spokesman Terry Ryan said the improved price results in WA had come from the benefits of better practices that the utility had passed on to consumers.
According to the survey, WA’s big businesses are paying more than their eastern States competitors.
For 2002-03 the ESAA reports large WA businesses – those consuming more than 13,140 megawatt hours per year – are being charged 8.89 cents per kilowatt hour, while New South Wales big businesses only pay 5.6 cents per kilowatt hour and Victorian businesses 5.49 cents per kilowatt hour.
WA small businesses, those consuming around 30 megawatt hours per year, will be paying 16.17 cents per kilowatt hour in 2002-03.
Small businesses in NSW will only pay 10.35 cents per kilowatt hour, Queensland small businesses pay 12.98 cents per kilowatt hour and South Australian businesses pay 15.44 cents per kilowatt hour.
However, WA small businesses are better off than their Victorian counterparts, which pay 17.19 cents per kilowatt hour.
Mr Lillywhite said Western Power had been able to push prices down by seeking greater efficiencies in its operations.
“We’ve been able to renegotiate some of our fuel contracts,” he said.
“We also have plans for new generators at Cockburn 1 and 2. They will be the most efficient generators in WA, so there will be more price reductions.”
Fuel makes up 47 per cent of Western Power’s costs and the utility has been locked into some long-term take or pay contracts.
Business tariffs are not expected to rise for another two years.
Western Power general manager retail John Lillywhite said prices were improving in WA in relation to the rest of the nation and that the utility had plans for further price reductions.
“However, reform is an issue best left to government,” he said.
One of Western Power’s arguments has been that any proposed electricity reforms will have to better its own price performance.
The WA Government’s Electricity Reform Task Force – the body charged with deciding whether Western Power should be broken up – has been given a two-week extension to complete its final report.
The report was due to be handed to Energy Minister Eric Ripper by the end of September.
The ERTF is expected to recommend that Western Power be broken into separate generation, transmission and retail businesses.
The Electricity Supply Association of Australia’s 2002 edition of its Electricity Prices in Australia report showed that, since 1996-97, the cost of electricity for WA’s businesses has been increasing less slowly than the inflation rate – therefore decreasing in real terms.
ESAA spokesman Terry Ryan said the improved price results in WA had come from the benefits of better practices that the utility had passed on to consumers.
According to the survey, WA’s big businesses are paying more than their eastern States competitors.
For 2002-03 the ESAA reports large WA businesses – those consuming more than 13,140 megawatt hours per year – are being charged 8.89 cents per kilowatt hour, while New South Wales big businesses only pay 5.6 cents per kilowatt hour and Victorian businesses 5.49 cents per kilowatt hour.
WA small businesses, those consuming around 30 megawatt hours per year, will be paying 16.17 cents per kilowatt hour in 2002-03.
Small businesses in NSW will only pay 10.35 cents per kilowatt hour, Queensland small businesses pay 12.98 cents per kilowatt hour and South Australian businesses pay 15.44 cents per kilowatt hour.
However, WA small businesses are better off than their Victorian counterparts, which pay 17.19 cents per kilowatt hour.
Mr Lillywhite said Western Power had been able to push prices down by seeking greater efficiencies in its operations.
“We’ve been able to renegotiate some of our fuel contracts,” he said.
“We also have plans for new generators at Cockburn 1 and 2. They will be the most efficient generators in WA, so there will be more price reductions.”
Fuel makes up 47 per cent of Western Power’s costs and the utility has been locked into some long-term take or pay contracts.
Business tariffs are not expected to rise for another two years.
