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asked in the
27 June 2018
Hon Peter Collier
Hon B.S. Wyatt
HORIZON POWER — TARIFF EQUALISATION CONTRIBUTION
Hon PETER COLLIER
to the minister representing the Minister for Energy:
I refer to the significant growth in the subsidy provided to Horizon Power.
(1) What factors have contributed to the growth in the tariff equalisation contribution from $167 million in 2017–18 to $198 million in 2018–19?
(2) Why does the government believe that the subsidy will decrease to $162 million in 2019–20?
Hon STEPHEN DAWSON
I thank the honourable Leader of the Opposition for some notice of the question.
The growth in the tariff equalisation contribution from $167 million in 2017–18 to $198 million in 2018–19
reflects the timing of the 2017–18 state budget, which was delayed due to the state election. This delay meant that not all decisions relating to the 2017–18 TEC were made prior to the 30 June 2017 TEC finalisation deadline. As a result, the 2018–19 TEC reflects both a 2017–18 TEC funding shortfall of $12 million
and underlying cost movements associated with Horizon Power's operating environment.
(2) The forecast TEC decrease to $162 million in 2019–20 is based on 2018–19 budget forecasts, subject to the outcomes of a review of the TEC being undertaken by the Department of Treasury.
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The Parliament of Western Australia is honoured to be situated on the ancestral lands of the Whadjuk Noongar people. The Parliament acknowledges the First Australians as the traditional owners of the lands we represent and pays respects to their Elders both past and present.