Councils across Perth could raise rates to accommodate Western Power plans to increase streetlight charge

Councils across the southern suburbs say rate rises will be inevitable if Western Power goes ahead with plans to increase streetlight charges by 44 per cent from the middle of the year. City of Canning mayor Patrick Hall told The West his council was currently finalising its 2023-2024 budget and the unexpected price hike for lights would place unprecedented pressure on rates, and potentially cause the city to “go back to the drawing board” and recommence its budget deliberations. “Canning has over 9000 streetlights, and the sudden and unexpected decision to significantly raise tariffs would result in an $830,000 increase, the equivalent of an additional one per cent rate increase,” Mr Hall said. “It is a cost which cannot be absorbed by local governments and will leave the sector with no option other than to pass the cost on to residents. “Despite ample opportunity, there has been a lack of consultation and communication with local governments about an increase of this magnitude and that is the most disappointing aspect of this announcement. “Whilst the transition to LED streetlights is supported, the streetlight assets are owned by Western Power and power consumption should be reducing as an outcome of LED conversion, not increasing.” The 43.85 per cent potential increase to street lighting charges in 2023-24 is contained in Western Power’s proposed price list, which is with the Economic Regulation Authority — the independent regulator — for approval. A verdict is due to be handed down within the next week. Like Canning, the City of Cockburn is in the final stages of sorting its annual budget for the coming financial year. Acting chief executive Daniel Arndt said it might be the following year’s rates that are affected if Western Power’s proposal is followed through. “The city’s budget planning is already at a progressed stage, making it difficult to absorb an increase of this magnitude,” Mr Arndt said. “The city currently pays around $3 million for street lighting and anticipates this to increase by at least $1 million if approved by the Economic Regulation Authority. “Given the very late nature of the change, absorbing this increase will require council to decide whether to increase rates further next year, make cuts to services and projects, or divert savings held for future needs. “In the long term, increases in the city’s operating costs like these need to be funded from rates.” A spokesperson for the Town of East Fremantle said the city generally budgets $120,000 for street lighting each financial year and has now “allowed a further $52,000 in light of the Western Power proposal”. “Ultimately, rates are set to provide for the net funding requirements of the town’s budget, of which street lighting is an expense item,” the spokesperson said. “Therefore, other planned expenditure items would have to be reduced, or rates increased, to accommodate this increase in streetlights.” The spokesperson confirmed the town would “reduce planned works to absorb the expected increase” if the price hike were to go ahead. “This was completely unexpected and unreasonable, the additional cost will ultimately be passed on to ratepayers who will see it as a local government charge rather than a State Government statutory authority charge,” they said.