Local governments 'blindsided' by street light tariff

The Economic Regulation Authority has knocked back a proposal by Western Power to jack up street light costs that would likely have been passed on to residents.

Reviewing the state electricty provider's price list for 2023-24, the ERA indicated that a 7.43 per cent average increase put forward to accommodate for rising input costs broadly complied with regulatory requirements.

However, a 43.85 per cent proposed street light tariff was scaled back substantially by the regulator to 7.5 per cent in line with the ERA’s forecast of the average increase in network charges.

The ERA's decision has been welcomed by local governments, who the WA Local Government Association said had been blindsided when Western Power lodged its proposed price list in April. 

Councils had argued that they would have to cut services or pass on higher street lighting costs to residents, who are all set to receive at least a $400 energy credit as part of cost-of-living relief measures handed down in the state budget last week.

"Local governments were blindsided when Western Power lodged its proposed 2023/24 price list on April 27. Western Power’s proposed 43.85 per cent increase in the street light tariff was unexpected and had not been factored into Local Government budgets," WALGA said in response. 

President Karen Chappel said there had been 'considerable anger' from local governments at the timing and proposed increase.

“Local governments were well into the process of finalising Budgets for 2023-24 when this proposed street light tariff price shock by Western Power was lodged with the ERA,” she said.

“As local governments bear the costs of street lighting, a rise of this magnitude would have meant either rate increases for residents or a cut in services for the community."

In handing down the decision, ERA chair Steve Edwell said it had acknowledged the concerns and that it was important for local governments to have reasonable notice of any changes. 

That’s not to say there won’t be higher tariffs added to street lights in the future however, with the ERA also advisng it would be working with Western Power and local governments to review costs and develop a ‘transitional price path’ to pin down a tariff that reflected high inputs.

“This will ensure customers are informed well in advance of the next price list and subsequent price lists of any increases that may be required,” the ERA said.