Western Power reveals plans to increase streetlighting charges one week before State Budget is finalised

Western Power has revealed plans to hike streetlighting charges by an astronomical 44 per cent from the middle of the year in a move that has blindsided councils, and could leave ratepayers to make up the cost. City of Greater Geraldton Mayor Shane Van Styn said the change would mean an extra $482,000 in costs to the City, which to recoup council would need to increase rates by another one per cent. “We simply didn’t know, they have kept it hidden,” he said about the surprise increase made known only a week before the State Budget is announced. “The $1.1 million Synergy fees are already set in the City’s budget.” The increase on tariffs would be 43.85 per cent and would begin from July 1 this year. The forecasted increase was 2.81 per cent. a stark difference that has left local governments across the State at a loss on what to do. WA Local Government Association CEO Nick Sloan said the scale of the increase was not foreshadowed by Western Power. “As a result (it) has not been factored into local governments’ budgets for 2023-24, which have been set on the basis of the 2.81 per cent increase set out in the Budget Papers,” he said. “The actual increase in tariffs paid by local governments will be even higher once Synergy applies its retail margin.” Mr Van Styn said the City was working with WALGA in the hopes of negotiating the change. “It would mean an additional $482,000 cost to the City, which would be a one one per cent increase in rates to recoup those costs,” he said. “We’re frantically trying to work out what to do.” In a letter to Economic Regulation Authority CEO Jenness Gardner, City of Gosnells CEO Ian Cowie accused the utility of potentially profiting from the roll out of the street lighting assets. “Many 5G assets are to be attached to streetlights. This has the potential to generate significant revenue for Western Power,” he wrote. The State Budget will be announced next Thursday, leaving local governments not much time to devise a plan that will not result in ratepayers being out of pocket. A Western Power spokeswoman said the requested “one-off” price leap was a result of inflation, 28 per cent growth in the size of the streetlight asset base in recent years and a “step change in operational expenditure for streetlight maintenance”. She added that Western Power was required to ensure the prices it charged were “cost reflective” and that all money billed on streetlights went to maintaining and upgrading that specific network.