Colin Barnett

Colin Barnett

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    Expressions of interest called to supply power to Exmouth

    24/10/2000 3:30 PM
     
    24/10/00

    The State Government has called for expressions of interest from the private sector to supply power to Exmouth.

    Energy Minister Colin Barnett said selected proponents would be invited to submit detailed tender proposals.

    Mr Barnett said these would be assessed and it was envisaged Western Power would enter a contract to supply electricity
    on a commercial basis with the successful proponent.

    He said proposals would be assessed on:
    • financial soundness and capability;
    • demonstrated experience in independent power production;
    • industry credibility and proved record of proposed technology;
    • demonstrated expertise in developing similar projects;
    • environmental management and impact; and -
    • benefits to the community.

    Mr Barnett said he expected expressions of interest to close in December and that the short-listed applicants would be
    invited to tender early next year. The preferred bidder would be selected later next year.

    Uniform tariffs for power would still apply to domestic users and small businesses.

    More than two years ago the Minister announced changes in the State Government’s policy for providing regional electricity
    in areas supplied by Western Power but not connected to Western Power's interconnected systems.

    These comprise 29 regional systems.

    The high cost of providing power in regional Western Australia - together with the Government’s uniform tariff policy - led to substantial losses. Losses for last financial year were estimated at about $36.9 million.

    A significant part of the loss was related to the 1995 Commonwealth Government decision to increase excise duty on light fuel oil used for regional power.

    Mr Barnett said to reduce these losses, new contract-based private power suppliers were brought into the existing arrangements through a competitive tendering process.

    Media contact: Diana Callander 9222 9699