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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-03-22 Daily Xml
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REMOTE AREAS ENERGY SUPPLIES SCHEME

The Hon. T.J. STEPHENS (15:12): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about electricity prices in Coober Pedy.

Leave granted.

The Hon. T.J. STEPHENS: I refer to a brief released by the Coober Pedy district council on the electricity tariff increase through the Remote Areas Energy Supply Scheme. The brief damningly highlights that the council was notified of the tariff increase via a departmental media release forwarded by email only 10 days prior to its implementation. The process of price adjustment is usually discussed between government representatives, being advised by the Department for Transport, Energy and Infrastructure, and the council.

Data collected by the council shows that energy cost increases to essential services in Coober Pedy will be most significant. The town's major supermarket, The Miners Store, faces an annual increase of $73,890 based on consumption in 2010. The desalination plant, without which the town would not survive, is staring at an increase of $19,156, or 118 per cent, for the month of January alone, based on 2010 consumption. Commercial operators will have little choice but to try to pass on these increases to customers.

Finally, households, as well as facing increased costs in essential services, will also have to cop an increase to their own energy bills. An average household living underground faces an increase of $87.16 per quarter; the same average household living above ground faces an increase of $553.22 per quarter. It should be noted that only limited underground housing is available in Coober Pedy, so that is not the solution. The local Aboriginal population will also be significantly affected, as the majority live above ground and will be subject to the highest increases in household energy prices. My questions are:

1. Why wasn't the Coober Pedy district council consulted about the increase in electricity prices, as per the usual practice?

2. Why wasn't the local population informed of the significant increase to their energy prices and the resulting impact on their cost of living?

3. Was any kind of feasibility study done on the negative impact to local businesses? If not, why not?

4. How can the minister guarantee that this and any subsequent increase will not jeopardise the long term viability of Coober Pedy as a regional community?

5. Why is the government not concerned about the long-term viability of Coober Pedy, a community that contributes so significantly and magnificently to tourism in this state?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises) (15:15): I thank the honourable member for his question. It covers an area that is the responsibility of minister O'Brien, Minister for Energy, so I will refer those questions to that minister and bring back a response.

However, I have been advised that a revised remote areas energy supplies tariff schedule was recently approved by the acting minister for energy. The revised schedule was implemented on 7 March 2011. Under the revised tariffs small to medium domestic customers—up to 8,000 kilowatt per annum—will pay on average 4 per cent higher than equivalent on-grid consumers. This is, I am advised, well within the scheme's principle of small to medium domestic customers paying no more than the equivalent on-grid price, plus around 10 per cent.

As the remote areas energy supplies tariff has not kept pace with recent increases in on-grid prices, small to medium remote area energy supplies domestic customers are currently paying less than equivalent on-grid customers. Businesses have been offered energy audits, I am advised, and subsidies for changes to their infrastructure to improve energy efficiency via the federal government funded Renewable Remote Power Generation Program administered by DTEI. I have been advised there is some assistance available. In relation to the specific questions asked, I will refer them to minister O'Brien in another place and bring back a response.

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