SYNERGY —
SUBSIDIES
1077. Hon TIM CLIFFORD to the minister representing the
Minister for Energy:
I refer to the more than $700
million Synergy is set to receive this financial year and over the forward
estimates to cover shortfalls in revenue.
Will the minister please outline how
this will impact household energy costs?
Hon
STEPHEN DAWSON replied:
I thank the honourable member for
some notice of the question. The following information has been provided to me
by the Minister for Energy.
Household electricity
prices are set by the government. The McGowan government has already committed
to a freeze on household fees and
charges, including electricity tariffs. With respect to the $700 million over
the forward estimates period, the subsidies are only covering the cost
of government policy decisions, allowing Synergy to continually improve its
financial performance. These policy decisions also help households with
electricity costs. Synergy administers a range
of rebates and concessions on behalf of government, which includes the WA
government energy assistance payment,
the dependent child rebate, the air conditioning allowance, the late payment
fee waiver and the account
establishment fee rebate, for which Synergy also receives subsidies. The
government also doubled the energy assistance payment for concession
card holders, and has extended the disconnection moratorium for households
experiencing hardship as a result of the COVID-19 pandemic and who engage with
Synergy. There is also the $600 household
electricity credit for all WA households, and the $2 500 small business and
charity electricity offset.
An operating subsidy has also been provided to Synergy to
fund it for cost shortfalls that it is currently unable to recover. Some of
these are for the government's rooftop solar buyback mechanisms—the
feed-in tariff scheme and the renewable
energy buyback scheme. The amount also includes any subsidy for Synergy to
undertake required works to
participate in the new wholesale energy market—part of the McGowan
government's energy transformation strategy. Another policy measure included in the amount is the tariff
equalisation contribution, which is designed to ensure that all Western Australians pay the same price for their energy.
In implementing this policy, Synergy provides a subsidy to Horizon Power.
The TEC payment from the state government reimburses Synergy for under-recovery
of network charges it currently absorbs. These arrangements ensure that
household costs are kept down.