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Parliamentary Questions


Question Without Notice No. 585 asked in the Legislative Assembly on 19 August 2020 by Mr V.A. Catania

Parliament: 40 Session: 1

HORIZON POWER — TARIFFS

585. Mr V.A. CATANIA to the Minister for Energy:

I refer to the state government's commitment to freeze increases on household fees and charges in response to COVID-19 and subsequent calls from the state government for local governments to freeze rates and other charges this financial year.

(1) Can the minister confirm that Horizon Power has increased local government streetlight tariffs by 10.6 per cent?

(2) Has Horizon Power increased any other tariffs on small businesses, not-for-profit organisations and charities, including crisis accommodation, this financial year; and, if so, for what reason?

Mr W.J. JOHNSTON replied:

(1)–(2) Yes. Horizon Power has increased streetlight charges for its area of operation by that figure, and that is because it is transitioning to be cost reflective. That was announced a long time ago, because it was announced when the Treasurer was still the Minister for Energy. It is simply rolling out a pre-existing decision; it is not a new decision and has been reflected in the budget papers for quite some time.

In respect of the other tariffs for business for Horizon or Synergy, there are, of course, two separate groups to those. The first are those that are in the deregulated space. Of course, they change over time, but they are benchmarks and not an actual tariff. They are in the contestable market, so if people do not want to pay Synergy or Horizon, they are able to do other things. In respect of the regulated tariffs, the government has given $2 500 to every business on a regulated tariff. For Horizon, the L2 tariff, for example, is for small businesses, and I cannot remember the name of the charity rate. We have given them $2 500.

Mr V.A. Catania: Now you're increasing their prices.

Mr W.J. JOHNSTON: No. Think about it, member. What we have done is we have given them a $2 5000 offset. It is true that there has been a small increase in the regulated tariff, which, of course, is a cost-reflective tariff—not for Horizon customers, of course; only for Synergy customers. Horizon customers, of course, have a significant embedded subsidy because we have a uniform tariff policy.

Yes, the tariff has increased, but nobody is paying it because they have not yet worked off their $2 500 credit. Think about it, member. They got $2 500.

Mr V.A. Catania: Not everybody can get that $2 500.

Mr W.J. JOHNSTON: No. Everybody on the regulated tariff has it. Every single business and every single charity on the regulated tariff has received a $2 500 offset without exception.