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 New electricity tariff will make country more expensive 

New electricity tariff will make country more expensive

12 Feb, 2010 01:00 AM
LARGE energy consumers in Esperance may be facing an energy bill increase of $50,000 per year or more if the State Government applies a new electricity tariff.

The Esperance Chamber of Commerce and Industry (ECCI) has expressed disappointment at the State Government’s recent comments relating to the Horizon Power commercial electricity tariff – which will see new medium to large energy users faced with a steeper power bill than those already connected to the grid.

But even more worrying is the State Government’s admission that they may apply the tariff retroactively to existing large businesses.

ECCI CEO, Marcus Tromp, said the tariff was an economic threat to regional WA, and a very real threat to Esperance.

Mr Tromp said the tariff would make the country a more expensive place to live and do business.

“The restructuring of the tariff is of major concern in preventing the attraction of new business to Esperance, however even more horrifying is the Minister for Energy’s admission that the State Government is considering, and I quote ‘the transition of existing large business customers in regional areas to cost reflective rates’. The cost reflective rate for Esperance is 0.53 cents per unit – a 150 per cent increase,” Mr Tromp said.

Local businesses who consume more than 420 units per day or more will be hit with an electricity bill increase of at least $50,000 per year if the move goes ahead.

“ECCI is creating a register of businesses who consume more than 420 units per day to enable a total understanding of the possible economic impact and potential unemployment impact to our region if the State Government implements the tariff.”

Mr Tromp said the ECCI has instigated a lobbying campaign for regional WA through the Regional Chamber of Commerce and Industry, and urged any large businesses in Esperance to contact the ECCI on 9071 5142.

Member for Eyre, Dr Graham Jacobs, said he has been in close contact with the Minister for Energy over the issue, however he was unable to make further comment on the matter.

Member for the Mining and Pastoral Region, Wendy Duncan, said she would be meeting with Horizon Power and Minister for Regional Development, Brendon Grylls, to discuss the issue.

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