While The Chamber of Minerals and Energy of Western Australia (CME) welcomed the plan to split the Department of Environment and Conservation and separating the management and conservation of our environment from the role of environmental regulator it is disappointed with the State Government’s proposed merger of Verve and Synergy.
“Merging Verve and Synergy will be a retrograde step in the market reform process,” CME Chief Executive, Reg Howard-Smith said.
“CME believes a competitive energy market will best serve the community, allocating resources efficiently, delivering lower costs over time and supporting jobs and growth,” said Mr Howard-Smith.
“With disaggregation of the former Western Power and the creation of the Wholesale Electricity Market, Western Australia has been on the path towards a more competitive market. A merge of Verve and Synergy will undermine this progress to competition,” said Mr Howard-Smith.
“CME is concerned this will erode certainty and the attractiveness of the Western Australian electricity market for private investors,” said Mr Howard-Smith.
”This proposal will place the merged entity in a position where it would be dealing with its own competitors through pre-existing long-term contracts between Synergy and private generators. It will also decrease the financial transparency and accountability associated with separate generation and retail businesses, and reduce efficiency incentives,” said Mr Howard-Smith
Media enquiries
Bruce Campbell-Fraser | b.campbell-fraser@cmewa.com | 0437 156 127
