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Legislative Assembly for the ACT: 2000 Week 3 Hansard (9 March) . . Page.. 829 ..

MR HIRD (5.02): I will begin by addressing ACTEW's commercial viability. The primary objective of the partnership proposal has been to secure ACTEW's long-term future in the national energy market, to protect its business and to provide a future for its staff. Outside of water and sewerage services, ACTEW's main business is the supply of electricity to ACT consumers - the retail and distribution services. Both these services are under significant pressure through retail competition for customers and other pressures by other retailers to reduce the costs of access to ACTEW's network.

What is accepted is that ACTEW faces greater energy trading risks in the new competitive national energy market. Within the proposed partnership, ACTEW's exposure to these risks can be better managed through the purchasing power of AGL and the capacity to spread costs and energy demands across a larger customer base. ACTEW will be able to share these risks with AGL. With more energy consumers looking to gas and alternative energy sources to the traditional source of electricity, it has been increasingly important for ACTEW to diversify. AGL, as a larger national corporation, offers the capacity for ACTEW to diversify in the energy market in terms of energy supplies that exist outside the ACT border.

I notice that some members of the Opposition are leaving the chamber while I am speaking, but I know Mr Quinlan has an intense interest in this matter. ACTEW customers will gain sufficient benefits from partnership proposals that bring together the retail arms of ACTEW and AGL. In partnership, ACTEW and AGL will be able to strengthen and improve their operations to provide a superior level of services to new and existing customers in a number of areas.

First, customers will get a one-stop shop for electricity, gas, water and sewerage services, with a single call centre for inquiries, a single billing payment service and a single point of contact for emergencies. Second, as a multi-utility, the ACTEW/AGL partnership will be able to offer a package of services to ACT consumers - a situation not previously available from either ACTEW or AGL alone. This means that customers will be able to choose a mix of appliances and energy sources that best suit them and get this service from one supplier. Third, with a larger customer base and the capacity to expand their businesses, the ACTEW/AGL partnership will be able to spread their costs and achieve economies of scale.

The ACTEW/AGL partnership will be able to pass on the lower costs to existing and new customers in the form of lower prices. The bottom line is that customers can expect an even better deal from the ACTEW/AGL partnership than they presently get in terms of choice and service standards - benefits to the ACT community. The ACT community will hold an investment in the combined electricity and gas networks assessed under the ACTEW/AGL partnership proposal.

It will also continue to directly own and control water as a resource, and, through ACTEW, water and sewerage infrastructure assets. The ACT community will also benefit from the knowledge that its major business enterprise, ACTEW, will have a secure long-term future and that the value of the ACT's investment in electricity network assets will be protected.

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