Massive investment planned for electricity network

16/10/03
A State Government-owned electricity networks corporation will be set up to oversee major improvements to Western Australia's electricity supply and distribution systems.
Energy Minister Eric Ripper said the new State Networks Corporation - to be established following the passage of the Government's electricity reforms - would spearhead a massive upgrade of the State's South West power grid.
The grid stretches from Kalbarri to Kalgoorlie and Albany.
Mr Ripper said more than $950million would be spent on transmission and distribution improvements during the next four years.
"As part of the Government's reforms to introduce more competition in the energy market more private power stations will be built," the Minister said.
"This will free up Government resources that would otherwise fund public power stations for investment in network improvements."
Mr Ripper today released a report by the Director of Energy Safety on network reliability in the Central Wheatbelt and Bremer Bay - the full report is available at http://www.energysafety.wa.gov.au
Last year the Gallop Government introduced regulations which, for the first time, provided external scrutiny of Western Power's performance in meeting energy supply standards.
"Many people in the Wheatbelt affected by power failures have taken advantage of this new complaint mechanism," the Minister said.
Mr Ripper said the Director of Energy Safety report identified the need for a seven-year upgrade program in the Central Wheatbelt and Bremer Bay areas.
The report said, in part:
".the problems that are evident have not developed recently but over quite some time, becoming more pronounced during the last 10 years approximately, as the age of some of the assets (such as poles and conductors) has increased to the point where many are nearing the end of their normally expected life; consumer loads have grown and this has put pressure on parts of the distribution system; and consumers in country areas like elsewhere are increasingly dependent on electricity for their businesses and private activities, and their expectations in terms of supply reliability have changed (and are consistent with the benchmark standards for rural areas)."
Mr Ripper said Western Power had already planned or started $4.6million of urgent improvements in Toodyay, Northam, York, Koorda, Wongan Hills and Bremer Bay.
Prior to the establishment of the new networks corporation, Western Power is also developing a 10-year priority investment plan for the entire South-West electricity network.
The plan is due to be finalised early next year.

"The Director of Energy Safety's report is an important analysis of underlying problems in the Central Wheatbelt and Bremer Bay," Mr Ripper said.

"Western Power - or more appropriately the new corporation - has responsibility for the entire South-West grid and must make investment decisions on the basis of priority need.

"We have an electricity network that is nearly 40 years old and covers vast distances with reliability further affected by falling trees, fires and storms. As the regional economy diversifies, the system also has to cope with increasing power demands.

"Frequent or extended power outages can be devastating and costly for regional families and businesses and it's clear more has to be done to prevent this occurring."
Mr Ripper said Western Power had more than doubled spending on regional power supply distribution and maintenance in the first three years of the Gallop Government.
"After years of laxity on this issue by the previous Coalition government, I urge the Nationals to support the Government's electricity reform legislation so we can get on with improving regional electricity supplies," he said.
Since coming to office, the Gallop Government has:

• restored the uniform electricity tariff in off-grid areas;
• put a stop to Coalition privatisation plans for the power industry;
• stepped up investment in regional electricity infrastructure and maintenance; and
• put in place new energy safety and supply regulations.