ELECTRICITY PRICES, COOBER PEDY

In reply to the Hon. T.J. STEPHENS (18 July 2012).

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations): The Minister for Mineral Resources and Energy has provided the following information:

1. The government remains committed to providing a significant subsidy focussed on small to medium domestic customers who pay no more than grid price +10 per cent. The government is aware that one option for reducing electricity prices is to connect Coober Pedy to the national electricity grid. The government has assisted the District Council of Coober Pedy to engage KPMG to progress this option.

2. The most recent capital cost estimate for connecting Coober Pedy to the national grid is approximately $50 million as identified in the independent review of the Remote Areas Energy Supplies (RAES) scheme conducted by KPMG in 2011.

3. Preliminary analysis has been carried out by KPMG as a part of the 2011 RAES Review. The report indicated that the project might be feasible if significant Federal Government funding were available. Further work on the cost-benefit analysis depends on the attitude taken by the owners (BHP-Billiton and Oz Minerals) of the private networks that would need to feed a new line to Coober Pedy.