Energy merger rules kept secret
Crucial regulations that will govern the operation of the merged Verve and Synergy will not be made public before a Bill to authorise the tie-up is debated in Parliament this week - and may not be published, even in draft form, before the legislation is voted on.
The Government will today bring forward debate on the Electricity Corporations Amendment Bill by using its majority in Parliament to have it declared "urgent", thus bypassing the usual rule of having it "lay on the table" for three weeks.
The Bill has been before Parliament for two weeks.
But the Bill will be debated before the Government has published draft regulations - from which will flow a range of powers for Energy Minister Mike Nahan to direct the merged corporation, including the management of commercial conflict of interests, abuse of market power and penalties for non-compliance - prompting the Opposition to accuse the Government of a cover-up or incompetence.
The merged entity, to be called Synergy, will have about 80 per cent of the retail electricity market and 60 per cent of the wholesale market.
The lack of detail about the Government's merger plan, which it wants to take effect from January 1, has alarmed the Opposition and private power firm Perth Energy.
"If you're an investor, the Government is saying your interests are protected by these regulations - which we haven't seen," shadow energy minister Bill Johnson said.
Perth Energy managing director Ky Cao predicted a "capital strike", with the private sector unwilling to invest in new power stations.
He said about one-third of the State's generating portfolio would need to be replaced in the next 10-12 years.
However, other private players were more confident, with one source saying the industry was happy with plans for Synergy to be required to offer standard wholesale electricity products for sale.
It is understood the Government wants the Auditor-General to monitor Synergy's obligations not to abuse its market power, rather than the Economic Regulation Authority.
