22 October 2008
Strathfield Council is one of thirty-four Sydney, Central Coast and Hunter-area councils that have raised strong objections to a proposed 67 per cent increase in street lighting pricing by EnergyAustralia.
In submissions to the Australian Energy Regulator, councils contend that EnergyAustralia’s proposed increase is not supported by its own modelling or consistent with benchmark’s elsewhere. If approved by the regulator, EnergyAustralia's pricing will result in a material shift of funding from direct service delivery by councils to EnergyAustralia.
Of particular concern to councils is the pricing of newer greenhouse-friendly lighting. In the case of the most common type of energy efficient lighting for residential roads, EnergyAustralia’s price this year is 84 per cent higher than that of Integral Energy (the electricity distributor in Western Sydney and the Illawarra).
Mayor of Strathfield, Cr Keith Kwon said: “Some tough questions have got to be asked by the regulators and government about why EnergyAustralia’s prices are so high, particularly for energy efficient lighting.
“Greenhouse priorities are paramount in the community and councils have been leading the push to see energy efficient street lighting widely deployed. The introduction of energy efficient lighting should not be seen as an opportunity to radically increase pricing.”
The proposed increase comes amidst ongoing Council concern about the lack of clear regulatory arrangements for street lighting in NSW and years of service difficulties for councils served by EnergyAustralia.
Street lighting is a monopoly service of EnergyAustralia yet there are no contracts, no binding service regulation and there has been limited regulatory oversight of pricing.
