WA premier makes no friends with gas hike

West Australian Premier Colin Barnett concedes he has won no friends among householders and angered the state's biggest gas retailer with his decision to increase gas bills by 10 per cent.
But Mr Barnett said the price hike could have been worse, with the Office of Energy recommending an increase of 30.2 per cent.
The 10 per cent rise, which comes into effect on August 1, will add about $1 a week to the average household gas bill during the next financial year.
The hikes were needed after the independent Economic Regulation Authority (ERA) slapped Alinta, Perth's primary gas retailer, with a 27 per cent fee increase for the use of the government-owned gas distribution network, Mr Barnett said.
But he said he would not let households bear the entire cost increase.
"What the government has sought to do here is find a balance between the effect of cost of living of households and also maintaining Alinta as a major gas supplier," the WA premier said.
"I realise in trying to find that balance neither households or Alinta will be happy."
Alinta CEO Jeff Dimery immediately hit out at the decision, calling it an "expedient and self-serving" move that did not address the problem of rising wholesale gas prices.
"Premier Barnett has today announced a Band-Aid solution to cover up the government's mismanagement of the energy sector," Mr Dimery said.
"Under Premier Barnett's watch, there have been significant increases in upstream gas costs and network charges, yet Alinta has been denied the ability to recover these cost increases."
Mr Dimery said "the government was prepared to risk the long-term viability of private operators in the energy industry for short-term political gain".
The premier acknowledged cost pressures for Alinta would continue to grow and there was an "element of delay" in Wednesday's decision, with the pain being spread out.
"The issue remains in future years that there be an expectation of more, further increases but we are not as a government going to simply rubber stamp increases in prices," Mr Barnett said.
But Mr Barnett said he believed the decision would still enable Alinta to trade profitably.
Since the Liberal-National party coalition came to power in the state in 2008, electricity prices have increased 57 per cent and water prices have increased 42 per cent.
The opposition leapt on the latest utility price hikes, with energy spokeswoman Kate Doust calling it a "kick in the guts" for households who were given only a last-minute warning.
"Mr Barnett is inflicting more pain on Western Australians. He is proving once again that he is totally out of touch with struggling families and pensioners," Ms Doust said.
"This lack of notice for people on a budget is absolutely unacceptable, but given Mr Barnett's arrogance and heartlessness is sadly not surprising."