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Parliamentary Questions

Question Without Notice No. 507 asked in the Legislative Council on 21 May 2020 by Hon Charles Smith

Parliament: 40 Session: 1

Answered on 21 May 2020

DOMESTIC GAS RESERVATION POLICY

507. Hon CHARLES SMITH to the Leader of the House representing the Premier:

I refer to the article published today by former Premier Hon Colin Barnett regarding Western Australia's gas reservation policy.

(1) Although the current gas reservation policy provides for gas prices to be determined by the market, does the Premier concede that gas prices primarily dictate electricity costs?

(2) Does Western Australia's reservation policy have a cap price?

(3) If yes to (2), what is the price?

(4) Is the government entertaining the idea of a gas pipeline from the west coast to the east?

(5) Does the government concede that such a policy would rely entirely upon WA sustaining a domestic gas reservation policy that then has to cover demand for the entire continent?

(6) Does the government concede that a likely outcome of such a policy would be that WA gas suppliers will then privilege export customers and use the pipeline to break the WA reservation, thus lifting the domestic price in WA?

Hon SUE ELLERY replied:

I thank the honourable member for some notice of the question.

(1) No. There are numerous factors that determine the final cost of delivering electricity to consumers.

(2) No.

(3) Not applicable.

(4) No.

(5) Yes.

(6) The gas reservation policy is designed to ensure supply for WA. This government will not allow it to be undermined by any such pipeline.