The Department of Mineral and Petroleum Resources has admitted the high cost of electricity in Western Australian is deterring foreign investment. The admission comes on the heels of an announcement by French alumina giant Pechiney it does not intend to proceed with a planned $5 billion aluminium smelter in WA.

DMPR executive director, Mr Rod Evans, said despite the extensive effort of his department and the State Government to convince the French company to invest in WA, the French said they would look elsewhere because WA had not been able to deliver a competitive price for electricity.

The frank admission comes days before the State Government electricity task force is due to bring down its interim report and has sparked calls from the WA Chamber of Commerce for new players to be allowed into the WA electricity supply market.