In a letter to State Energy Minister Eric Ripper NCC president Wendy Craik said to expect cuts in the states annual competition payments, adding to the $41 million stripped from the state last year for its failure to impose reforms in areas such as retail trading hours, liquor licensing and potato and egg marketing.

"Electricity reform is a major national competition policy issue for WA. Failure to satisfactorily progress implementation of the reform package, in accordance with the timetable originally committed to, will result in an adverse assessment of considerable significance," said Dr Craik.

However, the Government has had success with one piece of reform legislation with the Greens agreeing to support a plan to open up the electricity market to private producers. The Electricity Industry Bill proposes to set up an energy ombudsman and open the market to private electricity producers.

In a bid to win support for the legislation Ripper reportedly promised the Greens that 10% of energy in the South-West power grid would be from renewable sources within six years.

The Greens refused the offer but are expected this week to try to amend the Electricity Industry Bill to increase the grid's renewable energy component to 20%.