In his opening address to the Energy in WA in Perth on Wednesday, Ripper said the problems that had plagued state government-owned utility Western Power had been resolved, according to the newspaper.

Ripper said Western Power would soon build a new power station and expansion work would soon begin on the recently sold Dampier-to-Bunbury natural gas pipeline.

Western Power has hired 100 new linesmen and maintenance assistants this year and plans a record $1.8 billion extension of its south-west grid over the next four years, including a $45 million upgrade to reinforce line capacity from a new peaking station to be built south of the city and a $49 million program to improve country services.

Ripper ruled out privatising Western Power but said the State Government would cut its annual power bill by putting the supply of electricity to Government agencies out to tender.

Government was a big energy user and savings could be achieved by inviting independent power producers and Western Power to compete for the contract, he told the conference.

"Combining individual agency requirements into a large whole-of-government contract would be very lucrative in a competitive energy market," Ripper said.

"It also allows the Government to require that five per cent of the energy comes from renewable sources."

The contract would include those agencies using more than 50 megawatt hours per annum of electricity in the South-West power grid. It would total more than 120 megawatts.

"The Government spends about $50 million every year buying electricity for these departments and if we can cut the power bill, then more resources are available for front-line services such as health," he said.

Meanwhile, Australian Pipeline Trust (APA) has said that its plan to expand its gas storage facilities would help Western Power meet Perth’s power needs for the summer of 2005-06.

APA has signed a storage optimisation agreement with Western Power. This could require an additional dedicated gas storage well at the Mondarra Storage Facility as well as additional gas compression and processing facilities, according to APA managing director Jim McDonald.

“The project will enable gas to be stored and withdrawn at greater rates during times of peak need which could be used in times such as the during the expected hot, high air-conditioning demand summer days,” McDonald said.