Remerging state power utilities Verve Energy and Synergy would do nothing to lower electricity costs for consumers, according to a report from the WA Independent Power Association.
The association was established to advocate for further competition in the WA energy market and chair Richard Harris said a remerger between Verve and Synergy would create significant barriers to future private investment.
Citing a report by Frontier Economics, Mr Harris said that by continuing with the current disaggregated structure, investment would continue, creating greater capacity, greater efficiency and greater competition.
The IPA has six members, Alinta Energy, APA Group, Collgar Wind Farm, ERM Power, Griffin Power and NewGen Power.
“There is a misperception that remerging the two back together would bring down electricity costs … the fact is that Verve’s plant is ageing and inefficient and costs more to run than the newer infrastructure of independent power providers,” Mr Harris said.
