Shane Wright Economics Editor The West Australian April 29, 2014, 6:09 am
West Australians would pay more to turn on air-conditioners and water gardens in the height of summer under plans backed by the Productivity Commission.
Declaring government-owned power and water utilities were adding to Australia's poor productivity performance, the commission will today release a report arguing variable pricing for key services is an economic imperative.
The WA Government is under pressure from the Federal Government to sell the State-owned power system so that it can "recycle" that cash into infrastructure such as the proposed MAX light rail.
The commission said a flat price paid for water or electricity hurt the economy and overall productivity.
It said with electricity, failure to charge much higher premiums for high-use periods and much cheaper rates during low- demand times was one reason overall electricity prices were high.
About 10 per cent of WA's power network is used to provide just 40 hours of electricity, during peak periods, a year.
