Skip to main content
Home
  • The Legislative Assembly meets on 07/05/2024 (01:00 PM)
    Assembly sit 07/05/2024
  • The Legislative Council meets on 07/05/2024 (01:00 PM)
    Council sit 07/05/2024
  • The Public Administration meets on 29/04/2024 (11:00 AM)
    Committee meet 29/04/2024

Parliamentary Questions


Question Without Notice No. 622 asked in the Legislative Assembly on 19 October 2021 by Mr P.J. Rundle

Parliament: 41 Session: 1

ESPERANCE GAS DISTRIBUTION COMPANY

622. Mr P.J. RUNDLE to the Minister for Energy:

I refer to the withdrawal of services to customers of the reticulated gas system in Esperance and the lack of appropriate communication from the government to the impacted families and businesses.

(1) When will the minister finally update the 400 affected customers on the plan to manage this transition, and what is happening regarding their appliances?

(2) When will the minister inform the hospital, other critical services and local businesses that are affected about the next steps so that they can clearly plan for the future?

Mr W.J. JOHNSTON replied:

(1)–(2) I thank the member very much for his question. I would first like to point out that the government of Western Australia has no customers of gas in Esperance. In fact, the government of Western Australia does not sell gas to any residential customer anywhere in Western Australia. When the member talks about the affected customers, I make it clear that all the customers affected by this decision are customers of the Esperance Gas Distribution Company, which is a subsidiary of the Infrastructure Capital Group, which made the disappointing decision to walk away from its customers in Esperance. I am very disappointed that it made that decision to abandon the people of Esperance. I have checked out whether there is any legal way that we can hold the private company that provides this service to account for its decision to abandon its 400 customers in Esperance. Unfortunately, it was never contemplated by the laws of Western Australia that a gas distribution company would abandon customers, so we have absolutely no control over what ICG is doing. I understand that one of the investors in ICG and in the Esperance Gas Distribution Company is, in fact, the Anglican Church here in Western Australia. I urge those investors to look at their conscience in the way they are treating these customers in Esperance.

We were advised by the Esperance distribution company only on 30 September that it had made the decision to walk away from its customers in Esperance. We are very disappointed that it made that decision. We have no legal authority to stop it from doing that. We are very disappointed that it made that decision to abandon its customers in Esperance. We are particularly very disappointed that it gave the people of Esperance such short notice.

I think there are roughly 370 residential customers, of which 167 are Department of Housing houses. There are about 30 commercial customers. We are engaging with the company to see whether it can be more respectful to its customers, who have been loyally paying their bills to that company for a long period. It is extremely disappointing that they have walked away from the people of Esperance, the member's constituents. As I have explained, the government has no capacity to control that decision. We are looking at alternatives. We are looking at what options are available to the residential customers. A range of options are available, but we are not in a position to do anything today because Esperance power advised us only on 30 September that it would walk away. So, it has been fewer than three weeks since we were advised by this private company that it was going to abandon the member's constituents. We are looking at what options are available for us to step in.

Let me make it clear that there is no option for us to start selling gas to residential customers in Esperance because they would be the only people that we would be selling gas to in the whole of Western Australia. As the member knows, there is a moratorium on Synergy and Horizon Power selling gas to residential customers. That was part of the privatisation of Alinta, which was done by a former Liberal–National government. In the end, we think there are about four or five business customers who cannot do without gas. We are trying to see whether there is some way we can continue to provide gas to those customers. At this stage, I cannot give that assurance because we have to deal with this incredibly disappointing behaviour by this private company.

We are looking at what options are available to residential customers. One option might be the conversion to electric supply. Obviously, that would mean that we would have to replace the appliances that are used by those customers. Potentially, it would cost a few million dollars to do that. We would certainly be asking the Infrastructure Capital Group, which has been making a lot of money from the residents of Esperance over a long period, to make a contribution. I hope that the member would join with me in that request to ICG to pay for that change, if that is the pathway we follow.

I want to make a final point before I sit down and take the member's supplementary question. The saving to the taxpayers of Western Australia from the new option, which is a more renewable option than the current provision of electricity for Horizon, is $10 million a year. The member should think about that. ICG has been taking an extra $10 million a year from the people of Western Australia for its operations in Esperance. The idea that it cannot afford to help its loyal customers that it is abandoning in such a brutal fashion is wrong. I expect ICG to step up to the plate and fund this because the taxpayers of Western Australia should not have to fill the gap left by a private company.