ENERGY reform is likely to be a key issue for Neil Hamilton in 2005, whichever party wins the State election.
ENERGY reform is likely to be a key issue for Neil Hamilton in 2005, whichever party wins the State election.
His number one request is very simple: “I hope we get some clarity,” he said.
As chairman of Western Power, he believes energy reform needs to strike a balance between the competing objectives of reliability and efficiency.
“I think it’s impossible to get that balance if it’s going to be fought politically every yard of the trench,” Mr Hamilton said. “I’d like to see an informed and measured debate.”
After the highly charged energy reform debate of 2004, fuelled by the February power crisis, it is doubtful if Mr Hamilton will get his wish.
Energy Minister Eric Ripper has already achieved some of his reform goals, with the creation of a wholesale electricity market.
A big sticking point is the future of Western Power.
Mr Ripper supports a four-way split into separate generation, retail, distribution and regional businesses, while Opposition leader Colin Barnett supports a partial split, with generation and retail staying together.
Sitting in the middle, Mr Hamilton takes a pragmatic approach.
“I think there is a bit of mythology about how complicated this all is,” he said.
Mr Hamilton believes there are three “givens” that should guide the debate.
First, reliable electricity supplies need to be maintained.
Second, cross subsidies are a fact of life given the wide geographic spread of the electricity network and Western Australia’s low population density. Third, “prima facie, competition is a good thing”.
Mr Hamilton is certainly no reform ideologue, noting the risks entailed.
“You can get extra competition over 10 years but you don’t want the lights going out,” he said.
While keeping an open mind on some of the key aspects of reform, he certainly favours splitting out the network from the rest of Western Power. In doing so, he has a gentle dig at arch competitor Alinta, which recently bought a partial stake in the Dampier-to-Bunbury natural gas pipeline.
“There are some people who say Western Power can’t own the network but they are quite happy to buy the pipeline,” he said.
Mr Hamilton also sees a risk that the benefits of deregulation could be captured by a small group of big companies.
“We need to be careful that the costs and benefits are shared between the big corporate customers and the smaller franchise custo-mers,” he said.
Looking back at 2004, Mr Hamilton is pleased by Western Power’s achievements “against a background of intense scrutiny”.
Mr Ripper is certainly pleased with Mr Hamilton, whose open, hands-on style was in marked contrast to his predecessor.
“He’s done a terrific job as chairman,” Mr Ripper said.
“He vigorously and skillfully and determinedly piloted the organi-sation.”
After the months of crisis at Western Power, Mr Hamilton has cut back his involvement, and said he had an open mind about his future involvement.
