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Councils' light bills to rocket

29 Apr, 2010 12:00 AM
COUNCIL street light bills will rocket in one hit instead of the heavy increases being phased in over four years, Wyong Shire mayor Bob Graham reports.

"We received notification from the AER (Australian Energy Regulator) in March that indicated an increase of 54 per cent, or $710,000," Cr Graham said.

"Of concern to us is the fact the AER seems to have back tracked on a previous determination to phase the increases in over four years and is now proposing that councils cough up the extra money in one hit," he said.

Cr Graham said there would be no point in councils turning off street lights to save money.

"Unfortunately, we are unable to just flick a switch and turn off the street lights to save us money," he said.

"And that's not only because of the safety aspects involved, but because council would still be hit with big bills for maintenance and capital costs regardless of whether the lights were on or off."

Wyong, along with other councils, has been notified that it is facing a significant increase in street lighting costs following the determination on charges by the AER.

Cr Graham said his council had been campaigning against the increases with 33 other councils through the Southern Sydney Regional Organisation of Council's (SSROC).

He said the big cost increases would have a significant impact on council's ability to continue to deliver services to the community.

"We simply won't have the money," he said.

Prior to receiving this determination from AER, council's proposed budget for street lighting was $2.1 million. That amount was increased to $2.3 million in the Draft Management Plan currently on exhibition in anticipation of the increase being phased in over four years.

There is an overall average increase of 49 per cent in street lighting capital and maintenance charges for councils from July 1, 2010.

A spokesperson for Lake Macquarie City Council said the council was still working on the figures resulting from the Australian Energy Regulator's determination on street lighting prices.

"We have been advised that electricity network charges will increase by 47.8 per cent next financial year. We have not been advised as of yet what the actual impact will be for us but the estimated financial impact for the council will be around $500,000," the spokesperson said.

LMCC mayor Greg Piper said electricity bills embraced charges for the Federal Government's carbon credit scheme even though it was not yet approved.

"Just like we're already paying for an unapproved Tillegra Dam in water bills when it should be dropped," he said.

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