Mr Nahan said in 2006 the then Labor government split the energy industry in order to lower the cost, lower tariffs and encourage more private sector investment.
West Australian Treasurer Mike Nahan has acknowledged the Government can no longer increase electricity prices to households in order for the state to remain competitive to industry.
“We pay - and this is paid by consumers - we make capacity payments of $1 billion a year and only a third of the capacity is being used, because we have gross excess capacity in this market,” Mr Nahan said.
The Treasurer also said even though the state had excess capacity, the private sector “in good faith invested in this market and expect to be paid”.
“Trouble is, cost has ballooned, tariffs are up, private sector has come in, but the state underwrites virtually all the investment - that’s not how we want to go forward,” Mr Nahan said.
He said WA had a “strange market” where the Government propped up private investors $1 billion per year in capacity payments.
Read more here: ABC