Synergy—A1 residential tariff
688. Hon Rod Caddies to the Leader of the House representing the Minister for Energy and Decarbonisation:
I refer to the Synergy Al residential tariff.
(1) What would the A1 tariff need to be set at to be cost reflective, based on the most recently available data?
(2) Will the cost of WA's energy transition result in increased operating subsidies being paid to Synergy by the state government?
Hon Jackie Jarvis replied:
I thank the honourable member for some notice of the question. On behalf of the Leader of the House, I provide the following response provided by the Minister for Energy and Decarbonisation.
(1) The decision to increase the Al residential electricity tariff by 2.5%—less than the forecast growth of the consumer price index of 2.75%—in 2025–26 results in the tariff remaining below the cost of supply in 2025–26, with an estimated cost recovery rate of 78%.
(2) Synergy's current subsidy reflects Synergy's current cost to generate electricity with its inefficient thermal generation fleet. Least-cost energy system modelling indicates that renewable generation, firmed by battery storage and gas generation, is the most efficient way to replace energy produced by coal generation while also supporting future demand growth. This will minimise the impact of the energy transformation on Synergy's operating subsidy.
