The Energy Minister has insisted that households will be protected from rising operating costs by state-run electricity retailer Synergy.

Western Power has been told by the industry’s regulator it needs to raise a billion dollars over the next five years.

Bill Johnston told 6PR Breakfast host Gareth Parker the cost of electricity makes up about 40 per cent of household bills.

“This is only a small hit on the cost of electricity, but it isn’t on the price because the price of electricity is set by the government,” he said.

“We’ve already capped electricity prices at 2.5 per cent for the future.”

The Economic Regulation Authority has found Western Power’s proposed revenue target is well below what’s required to meet inflation, as well as upgrades and capital works.

Tap PLAY to hear the full interview and how it might hit your pocket.