Minister Looking For A More Competitive Gas Market

Minister Looking For A More Competitive Gas Market

Western Australia Minister for Energy Peter Collier

Gas Tariffs Review Report Released

Victor P Taffa

A Draft Report has been released on a review of retail gas tariffs supplied by Alinta to the Mid-West/South-West, Kalgoorlie-Boulder and Albany areas.

Carried out by the Office of Energy, the review found that effective competition had failed to develop, despite the Gas Retail Market having been open to full contestability since 2004.

Energy Minister Peter Collier said the report recommended changes to the structure and administration of tariffs to facilitate development of effective competition in the Retail Gas Market.

The report also recommended gas tariff increases that could result in average annual residential bills rising between 6% and 15 %, depending on the regulated area and the amount of gas used by each customer.

 

 

“The current regulatory framework for setting retail gas tariffs is one of the factors acting as a barrier to encourage and develop competition, and having effective competition will result in a greater choice for customers.” Mr. Collier said.

“The review found that current retail gas tariffs are below the cost of supply.  It is not reasonable to expect any supplier to provide services at a price that does not cover its costs.”

“No new retailer is likely to enter the market under such conditions.” Mr. Collier said.

“We must ensure that suppliers are able to maintain secure and reliable services, and encourage competition.” Mr. Collier said.

Written submissions on the draft recommendations report will be accepted until February 18, 2011.

The Minister said the State Government would then consider recommendations in the final report before a decision was made.