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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-11-01 Daily Xml
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ENERGY CONCESSION SCHEME

The Hon. S.G. WADE (14:31): I seek leave to make a brief explanation before asking the Minister for Communities and Social Inclusion a question relating to the Energy Concession Scheme.

Leave granted.

The Hon. S.G. WADE: At page 240 of the Auditor-General's Report, he deals with his concerns in relation to the Energy Concession Scheme. In the 2011 audit, the Auditor-General identified that the energy concessions being provided by electricity entities did not match those established under section 21(1)(h) of the Electricity Act 1996. The Auditor-General understood that DCSI relied on cabinet approval to deviate from the legislated concessions.

In September 2011, DCSI advised that the Energy Concession Scheme would be amended by December 2011 so that the concessions would be within legislative limits. The Auditor-General's follow-up of this matter revealed that the Energy Concession Scheme has not been amended and that the concessions are still in excess of legislative limits. My question is: why has DCSI not implemented the ECS as per the Electricity Act 1996, and why has the government not amended the ECS?

The PRESIDENT: The Minister for Communities and Social Inclusion will note that that is a question going to the Auditor-General's Report, which we will be dealing with later.

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers) (14:32): I am quite happy to deal with it now. If the honourable member would like to take it up now, I can suit him if it is the will of the chamber; it will save time for another question perhaps when we deal with the Auditor-General's Report later on.

The PRESIDENT: You have 47 minutes, sir.

The Hon. I.K. HUNTER: Thank you. The Auditor-General identified that the energy concessions provided by the electricity entities did not match those set out in the Energy Concession Scheme, as established pursuant to section 21(1)(h) of the Electricity Act 1996. The Auditor-General also identified that the Department for Communities and Social Inclusion does rely, as the honourable member pointed out, on cabinet approval when increasing the rates. The energy concession rates are updated from time to time by cabinet. Section 21(1)(h) of the Electricity Act 1996 states:

The Commission must make a licence subject to conditions determined by the Commission...

(h) requiring the electricity entity to comply with the requirements of any scheme approved and funded by the Minister for the provision by the State of customer concessions or the performance of community service obligations by electricity entities.

As indicated in the Auditor-General's Report, the department has relied upon cabinet approval when increasing the rates. The Auditor-General has recommended that the department seek amendment to the scheme to specifically identify cabinet approval as a mechanism for varying the energy concession rates.

I am advised that significant work has been undertaken towards reviewing the Energy Concession Scheme. The revised scheme includes words consistent with the audit recommendations on the rates. The energy concession amount may be updated by cabinet from time to time, and the minister will communicate changes with retailers. My advice is that the scheme has been looked at, and that will be the recommendation I will be taking to cabinet.

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