Increased street light running costs to hit rate payers

Rate payers could be footing the bill for a big increase in the running cost of street lighting.

Western Power has told local governments to expect a 7 per cent hike in electricity costs, starting July 1.

The City of Busselton had already factored the inflated price into its budget. That increase is estimated to set the City back an extra $65,000 for the 2023/24 financial year.

“The City of Busselton was well into the process of finalising the budget for 2023-24 when the increase in street light tariff was lodged by Western Power,” CEO Tony Nottle said.

“This unexpected increase will have an impact on the City’s budget and will need to be considered in relation to services provided for the year.”

Last year’s state budget indicated there would be an increase of 2.8 per cent. WA Local Government Authority President Karen Chappell said was already a strain on shire budgets, let alone a now 7 per cent rise.

“An increase of this magnitude was not expected or planned for and will have a significant financial impact on Local Government budgets and, ultimately, the local communities they serve,” she said.

While the increase represents a sizable chunk of the City’s budget, it could have been much worse.

Western Power’s original submission to the Economic Regulation Authority called for the price to rise a staggering 44 per cent. This would have cost the City of Busselton an extra $386,000 every year

That proposal was knocked back by the ERA after it received submissions from local governments across the state.

The shire of Capel held a meeting the same week as Western Power announced its intentions to raise prices. Deputy President Sebastian Sciliano said he was “appalled” when he heard of the price increase, which would have set the largely rural shire back an extra $110,000 every year.

“That’s almost one per cent of rates on the cost of street lighting.

“I think it’s unbelievable.”

The shire voted along with others to submit its “strongest opposition” to the cost increase.

The Shire of Capel runs 1998 street lights, which usually cost $368,000 in electricity each year. That price will still go up by $25,670 this year with the 7 per cent tariff.

Shire President Doug Kitchen said he would rather the money was spent on amenities for locals.

“That’s something I’d rather put towards our park maintenance, or footpath maintenance. All the sorts of things that local government is here to do, rather than making the books on Western Power’s side of things look a bit better.”