The company posted an after-tax profit of $241.5 million dollars – a $19 million increase (8.8%) on last year, achieved without increasing electricity tariffs.

Iannello said the coming year would see a change in priorities for the State's premier electricity provider.

"The electricity market is governed by the competing tensions of cost, reliability and market development – opposing forces that must be balanced over time to achieve an efficient and affective market," Iannello said.

"The balance between cost and reliability is a difficult and complex judgement. However, we have taken a view, with the support of government, to provide a greater focus on reliability.”

Western Power has spent over $40 million on oil reserves and back-up generators to ensure there is no repeat of last summers power woes.

"For the next four years Western Power will be in a phase of significant expenditure in the network - $1.8 billion over four years – with the ultimate aim of exceeding national benchmarks for reliability in all areas of the network by 2008.

Iannello would not be drawn on profit forecasts but said system reliability and the increasing level of competition will have a measurable impact on financial results.