Power supply shake-up Daniel Mercer, The West Australian

Power supply shake-up

Daniel Mercer, The West AustralianUpdated July 15, 2013, 3:45 am

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Picture: Getty Images

Hundreds of thousands of WA households could be hit with higher electricity prices under a proposed shake-up of bills aimed at recovering the massive cost to the system caused by the popularity of rooftop solar panels.

WA's energy chiefs are understood to be pushing for a change in the structure of bills to make customers pay more in fixed charges.

At present, most of a householder's electricity bill stems from the amount of electricity used. Fixed costs, such as the supply charge, make up about 15 per cent of the bill. However, solar panels have slashed consumption for those households, cutting revenue to State-owned power companies, including retailer Synergy and network operator Western Power.

The trend has been highlighted as one of the big issues facing the electricity system and Energy Minister Mike Nahan has been warned that if nothing is done the consequences could be catastrophic.

Either households without solar panels would be left to pick up the tab, forcing their bills to unaffordable levels, or electricity providers would be financially crippled.

WA's take-up rate of photovoltaic cells - initially fuelled by generous State and Federal incentives - stands at more than 10 per cent of households and this figure is expected to double within years.

It is believed Synergy boss Trevor James has concerns about the situation. Western Power chief Paul Italiano said last year people without PV cells paid disproportionately to maintain WA's multibillion-dollar power grid.

Any move to increase fixed costs would be fraught for the Barnett Government, which has been under pressure over big price rises since it came to power in 2008.

It is not known whether the Government would consider a cut in consumption charges to offset any fixed-price move or opt for a straight-out levy on householders with solar panels.

Dr Nahan yesterday described the demand for solar panels as a "game-changer", saying it was growing at 20 per cent a year despite the withdrawal of the Government's feed-in-tariff two years ago.

"Here in WA, the rapid growth of PVs on rooftops is having a profound influence on electricity consumption and generation," Dr Nahan said. He acknowledged the pressure it was placing on Synergy.

"My own view is we in WA should perceive growth in small-scale PVs as a positive shift and this type of technology is here to stay," he said.

Shadow energy minister Bill Johnston said the system's funding model was outdated and the move by householders to rooftop panels had exposed its shortcomings.

Mr Johnston said there was a need to update the way bills were structured but he would oppose any measure that left low-income customers worse off.

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