The Sustainable Energy Association of Australia (SEA) has continued its campaign against re-mergers in Western Australia’s energy industry.

 

Planned re-mergers of electricity utility companies has been flagged as a possibility by the WA State Government, a move that SEA warns would dilute competition and lead to the formation of monolpoly operations.

 

"Energy market reforms leading to the disaggregation of Western Power in 2006 were strongly supported by industry to create a competitive market, and those reforms are not yet complete," said Professor Ray Wills, Chief Executive of the SEA. "If the Premier was to carry out a remerger of Verve and Synergy, the likely outcome will be to re-establish barriers to market entry and be a disincentive for private sector investment in Western Australia’s energy markets."

 

SEA has voiced its concern over Premier Collin Barnett criticising the previous Labor government’s move to split Western Power into four energy utilities. Mr Barnett has said the break up was ineffective in creating competition.

 

The state’s Chamber of Commerce and Industry (CCI) strongly disagreed with the Premier, warning that the move to centralize power utilities would undo 15 years of reform in the sector.

 

“Merging two government corporations will be a backwards step and will severely damage the development of a future competitive energy market. It is well known that competition, not government monopolies, encourages innovation and drive prices lower,” the CCI announced in a press release

 

"This is a return to the failed policies of the past. It is a mistake to believe that Government can produce and supply electricity more efficiently than the private sector," said CCI Chief Executive James Pearson.