Western Power will replace or reinforce 164,000 power poles and re-install 1,073 kilometres of power lines under its new $8.5 billion, five-year investment plan, which the power utility is preparing to lodge with the Economic Regulation Authority.
The plan will resuilt in an inital 16.4 per cent price increase, followed by increases of 12 per cent per year afterwards.
The investmet plan includes $5.7 bilion of capital expenditure, which will result in Western Power's debt increasing by $1.4 billion more than the state budget's current forward estimates.
Western Power today said its plan was designed to meet forecast growth in new customers and demand for electricity, improve safety in the network, and maintain a quality level of service.
Managing director Doug Aberle said the investment could be divided into three key areas; growth and security, safety, and maintaining service.
Approximately $3.3 billion will be invested in building infrastructure to support growth, $1.2 billion will be spent on safety, including the replacement and reinforcement of the 164,000 poles and addressing power line failures, while $1.2 billion will be spent on maintaining reliability standards.
The remainder of the $8.5 billion will be spent on operating expenses.
Mr Aberle said the plan recognised Western Australia’s growth and the need to upgrade the network.
“WA has an old network and while it has supplied customers over many years, it is reaching capacity and needs new infrastructure to meet future needs,” Mr Aberle said in a statement.
“It also needs substantial investment directed towards replacing poles and wires to improve safety levels.
“The network is effectively reaching the end of its useful and safe life.
“There were many years where levels of investment were below the amount required for asset replacement and we needed to overcome that legacy while working within economic and resourcing constraints.
“This has to be done while managing the challenge of replacing parts of the network and still supplying power.”
The proposal remains subject to ERA and government approval.
