- 51% public float of Western Power to create the Next Generation Account
- This will enable an unprecedented infrastructure expenditure in schools, TAFE facilities and transport, creating thousands of jobs for West Australians
- There will be no increase in the price of electricity as a result of the part sale
The Liberal National Government today announced it will progress a public float of 51 per cent of Western Power, with the proceeds used to create jobs and stimulate the economy by building the State's future infrastructure needs.
Premier Colin Barnett said the Next Generation Account would be created with $3 billion from the sale proceeds of Western Power, to fund investment in the initial priority areas of schools and TAFE facilities, transport infrastructure, and improving the reliability of electricity supplies in country areas.
"The part sale of Western Power will provide the funds needed to expand the State's capital works program to fix local schools, build new transport links, and stimulate the State's economy," the Premier said.
"These projects will create thousands of jobs - for builders, tradies, construction workers, engineers, technology providers, and their support staff - in communities throughout Western Australia.
"The sale proceeds will also be used to reduce State debt by about $8 billion."
Treasurer and Energy Minister Mike Nahan said there would be no increase in the cost of electricity for WA consumers or any reduction in the safety and reliability of the electricity network as a result of the proposed public float of Western Power.
"Under the 51 per cent public float proposal, the State Government will remain the largest shareholder (at 49 per cent), with indicative targets of 30 per cent of shares being sold to Australian superannuation funds and 20 per cent to mum and dad retail investors, including Western Power employees," Dr Nahan said.
"This model will address any national security concerns about foreign ownership. Western Power will not be foreign owned or controlled.
"It will be business as usual for workers at Western Power as strict employee protections will be outlined as part of the float process.
"Western Power is a regulated monopoly, which means a number of independent regulators will continue to oversee the various parts of the business, including safety, reliability, prices and performance, regardless of who owns Western Power. This will not change."
Nationals (WA) Leader Brendon Grylls said funds from the Next Generation Account would be used to improve electricity reliability at the edge of the grid in country areas.
"For West Australians living at the end of long feeder lines, this additional investment in edge-of-grid electricity solutions, including microgrids, will make a huge difference in their lives, while also ensuring we remain at the forefront of technological advances," Mr Grylls said.
Fact File
- Using its network of poles and wires, Western Power is responsible for bringing electricity from power stations to homes and businesses in the South-West of WA
- The Liberal National Government is proposing a 51% public float of Western Power
- This includes indicative targets of 20 per cent to Australian retail investors including 'mums and dads' and Western Power employees, and 30 per cent to Australian superannuation funds
- For more information, visit https://www.news.wa.gov.au
Premier's office - 6552 5000
Treasurer and Energy Minister's office - 6552 5700
