Redman welcomes the death of Headworks Charge

Author: Terry Redman
Published on: 01-June-2010

The Member for Blackwood-Stirling Terry Redman has welcomed the scrapping of the Labor government’s unfair Distribution Headworks Charge.

Mr Redman joined Energy Minister Peter Collier in Denmark today to announce the headworks charge will be totally subsidised for eligible customers requiring a new or expanded electricity supply from July 1.

Charges paid by customers since the scheme was introduced in 2007 will also be refunded, using funding through Royalties for Regions.

Mr Redman said that after three years of fighting he was delighted the charge was finally dead.

“It was clear right from the start that this charge discriminated against people in regional areas,” Mr Redman said.

“Small businesses and householders were being slugged exorbitant charges for services they would have got for nothing had they been in the city.

“In Denmark, the Ocean Beach Caravan Park was charged more than half a million dollars to get the power upgraded. The Rivermouth Caravan Park was charged almost $200 thousand, and a local carwash was slugged $30 thousand.

“Similar charges were imposed in other so-called ‘edge-of-grid’ areas like Walpole and Ravensthorpe.”

The headworks charge was a one-off payment for customers to connect to the electricity network that applied only to areas more than 25 kilometres from a sub-station.
Mr Redman said the Liberal-National Government recognised the charge was a serious impediment to regional development.

“It took the election of a new Liberal-National Government to kill-off this grossly unfair charge,” Mr Redman said.

“I’m very grateful that Minister Collier has listened to the concerns of regional people and ended the discrimination against businesses and households in country areas.”

For more information please contact Hon Terry Redman MLA on 1800 644 811 or terry.redman@mp.wa.gov.au.