Further reductions in SECWA's time-based tariffs from July 1, 1992 will save commercial and industrial users an estimated $12 million.
Fuel and Energy Minister Geoff Gallop said today that this was additional to the $20 million savings achieved by the extensive tariff restructure in March this year.
"The latest reduction in time-based tariffs results from SECWA's continuing drive to reduce its operating costs," Dr Gallop said.
"These savings are being passed on to SECWA's commercial and industrial customers to keep industrial costs down and stimulate development."
Dr Gallop said the peak rate for the new R tariff was being reduced to 19 cents per unit after the first 50 units per day. At the same time, the off-peak rate was reduced from 8.5 cents to 7.5 c/unit.
"This tariff will be very attractive for small customers using more than 20 per cent of their energy in the off-peak period," he said.
"There will also be a 10 per cent reduction in the demand charges of the S1, T1 and U1 tariffs and a reduction in their minimum daily charges.
"The changes to the S, T and U tariffs will help large energy consumers and bring their charges more into line with the Eastern States."
The Minister said SECWA undertook to monitor the impact of the March 1 tariff restructure and the latest changes should be seen as a fine tuning of the system.
Over the past five years SECWA had achieved significant improvements in its business performance and operating efficiency.
SECWA had also benefited from reduced interest rates, reductions in its labour force and reduced fuel costs.
"There is growing acceptance of SECWA's extensive March 1 restructure," Dr Gallop said.
"The initial reaction from some quarters was one of hostility but, as customers realised they had the opportunity to make significant savings, many have switched over to the time-based R, S and T tariffs.
"SECWA has also improved its R1 and R2 tariffs to provide further incentives for smaller customers with more than 20 per cent off peak energy to adopt a time-of-use tariff."
It was expected that 8,000 customers would adopt these tariffs over the next three years. The installation of new R meters for these customers would place pressure on SECWA but every effort would be made to minimise delays.
Further information and advice could be obtained by telephoning SECWA's tariff hotline, 326 4942.
