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Western Power is the state government owned entity which operates the South West's electricity network. Photo: Attila Csaszar

Western Power aims for $1bn savings

Western Power plans to reduce spending by nearly $1 billion in the next five years compared to the five years just gone, according to a proposal by the state-owned network operator to the state’s economic regulator.

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Kalamunda
While it is commendable that Western Power will seek to achieve operating reductions over the next five years, it is disturbing to note that capital costs will also be reducing. Significant capital underspend was a feature of Western Power management under the Labor governments led by premiers Gallop and Carpenter. History shows us that this usually means reduced maintenance and upkeep of the ever expanding network in WA. The previous government had to undertake a major capital works replacement of poles and wires that had been systemically under-maintained. It looks like Labor has learned none of its lessons.

Interesting points Stewart - very valid. I think in this case the lower capital cost will largely be driven by increased use of technology. The cost saving would be in moving to microgrids rather than replacing the long parts of the network. Here's hoping!

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Total revenue

3rd↑Water Corporation$2.55bn
4th↓GESB$2.04bn
5th-Western Power$1.78bn
6th-Western Australian Treasury Corporation$1.54bn
7th-Lotterywest$885.2m
29 state government businesses ranked by total revenue - this year

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