The relationship between the state government and Western Australia's main gas retailer has sunk even lower, with the premier refusing to meet with the company until it "calms down".
The stoush was triggered by Premier Colin Barnett's decision to lift household gas prices by 10 per cent, well below what Alinta had been calling for to cover its rise in costs.
Alinta CEO Jeff Dimery immediately attacked the premier, saying it was a politically expedient and self-serving decision that amounted to a "bandaid solution to cover up the government's mismanagement of the energy sector".
Mr Barnett said it was an "extraordinary" and "colourful" response from Alinta - the like of which he had never seen used by a company towards a government.
"I'll dismiss it and put it to one side as the heat of the moment. It's not really the way the company should behave and I don't think it would impress too many people in business," he told ABC Radio.
The premier said given the response by Alinta he would not be meeting with Mr Dimery in the near future.
"When he calms down, we're prepared to have discussions about further price changes," Mr Barnett said.
The decision to lift gas prices came after the WA economic regulator allowed the state's main gas pipeline operator to charge Alinta 29 per cent more for the use of its gas distribution network.
The Office of Energy then recommended the government lift retail gas prices to 30 per cent to help Alinta deal with the cost increases as well as rising wholesale gas prices.
The premier said the suggested increase was too high and he was not going to "simply rubber stamp" any recommendation put before it.
But Mr Barnett said another 10 per increase was likely next year.
"(Alinta) knew where we were coming from and they would have liked to have seen a commitment for future price increases all laid out in black and white," he said.
"Well the government was never going to do that.
"So this is a significant increase, one I think the public can just bear and there will probably be similar increases next year but this will spread out the burden."
Mr Barnett said he would be reviewing the system of regulation surrounding the energy sector.
He said regulation was meant to keep government out of the decision making process; however in this case it was not working.
Although the government had no role in the recommendations of price increases, regulators were throwing their decisions back onto the government to "defend and implement", Mr Barnett said.
"I am questioning it, I am giving a pretty clear signal out there to regulators, don't assume government is going to simply pass on cost increases to the public."
