The state government has named the heads of the four new businesses that will be created when Western Power is separated into four stand-alone businesses, with Doug Aberle to lead the biggest part of this - networks.
The state government has named the heads of the four new businesses that will be created when Western Power is separated into four stand-alone businesses, with Doug Aberle to lead the biggest part of this - networks.
Currently Networks Business Unit general manager, Mr Aberle's entity will retain the Western Power name and be responsible for the transport of electricity within the South-West Interconnected System when the break up is complete in April.
Mr Aberle told WA Business News the likely structure of the new entity would keep its existing staff of about 2,000 with the prospect of growing that number in the coming year as part of capital expenditure programmes.
The employees within the networks business represent 75 per cent of all Western Power staff at present.
He said the new Western Power would spend an overall figure of about $2.2 billion in the next four years from April next year.
"I can say that $600 million of that [$2.2 billion] will be operating expenditure and the rest will be spent through capital expenditure programs," Mr Aberle said.
Operating expenditure will be split between regional and metropolitan areas in a ratio of seven to three, he said, while almost all capital expenditure would be directed to the metropolitan area.
From July 2006, the national electricity distribution market will come under the regulation of National Energy Rules, with transmission-related guidelines for a new Wholesale Electricity Market.
One of the biggest challenges for the new stand-alone business would be moving from a best-endeavours approach to meeting the expectations of the regulator, he said.
But it should be better placed, he said, in terms of operational efficiency and focus.
"We'll be able to sharpen our focus on customers."
Mr Aberle was considered integral in gaining the $2.3 billion government investment to upgrade infrastructure and improve reliability of supply in WA, according to Western Power.
"We've been successful in negotiating additional funding on the back of lower funding around the country," he said.
Announcing the appointments, Energy Minister Alan Carpenter said the CEOs were chosen after a comprehensive Australia-wide search.
The other CEOs and their remuneration are:
- John Lillywhite, CEO of the generation business, which is responsible for power generation within the SWIS - $335,000 base - $125,000 at risk;
- James (Jim) Mitchell, CEO of the retail business, which is responsible for the sale of electricity within the SWIS - $320,000 base - $120,000 at risk;
- Rod Hayes, CEO of the regional business, a regional power corporation responsible for the generation, transport and sale of electricity in all areas of the State outside the SWIS - $360,000 base - $90,000 at risk.
Payment of the 'at risk' salary component will be determined by the achievement of business performance targets as agreed between the board of each business and the Minister for Energy.
Mr Lillywhite joined Western Power in 1997 as head of its Retail division, Mr Mitchell is currently working as the chief financial officer of Ergon Energy in Queensland, while Mr Hayes is currently CEO of Gladstone Area Water Board, also in Queensland.
All positions will be based in Perth, except for Mr Hayes', which will be based in Karratha.
Mr Carpenter said the restructure of Western Power into four separate corporations was aimed at improving efficiency thoughout the electricity market.
"Electricity reform will help develop a competitive electricity market which is essential to deliver better electricity services to Western Australians," he said.
"Rather than one large entity overseeing a wide range of business operations, each corporation will now have its core business as its sole focus."
Current Western Power chief executive Tony Ianello will remain at Western Power until March next year, when it is understood he will pursue private business interests in Perth.
