‘Poles and wires’ have been the major culprits behind electricity price increases in recent years – and there’s more bad news on this front for Western Australia.
Western Power’s 5 year maintenance plan for its wood pole network may have originally been just a little optimistic on the expense and time side of things. It was initially estimated to cost $1.35 billion.
“To get back to a stable maintenance cycle for the network, Western power estimates it will take until 2022 at the earliest, and a further $1 billion,” says part of a statement (PDF) from the office of Western Australia’s Auditor General.
Acting Auditor General Glen Clarke says the blowout is due to “decades of under investment in the wood pole network, and it will be a long and costly process to get the network back to a point where it is safe, reliable and economical.”
There are an estimated 660,000 wooden poles across the Western Power network. A document from the company states replacement poles cost $6,500 – $7,000 a pop (PDF) depending on local conditions and location. Pole replacements are more than five times more costly than reinforcements.
Back in 2010, then Federal Minister for Resources and Energy, Martin Ferguson, warned Australia needed to invest at least $100 billion in electricity infrastructure over the next decade just to meet growing demand and replace ageing infrastructure. He warned delays on the necessary work to that point would be “coming home to roost.”
And roosted they have.
According to national solar provider Energy Matters, electricity prices have risen by a whopping 72% in real terms since 2004 – much of that due to increases in network charges (infrastructure) in part to cope with the extra load caused by air-conditioners.
What the blowout means for Western Australian electricity customers remains to be seen; but it wouldn’t be unreasonable to suggest further related electricity bill hikes are in the wind.
The news is cold comfort to those who have been fighting myths and misinformation for years regarding the true villains of electricity price rises and extolling the benefits of clean, distributed energy generation – including a reduction in infrastructure spending. Sadly, it appears the message still may not be getting through to some.
