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Keep Power Prices Down – Keep Hardwood Power Poles in NSW
To the Speaker and Members of the Legislative Assembly
We, the undersigned, call upon the NSW Government to overturn the decision by Essential Energy to transition 1.33 million power poles from durable, sustainable, and affordable hardwood to fiberglass composite poles. This decision, if not reversed, will continue to have a detrimental impact on the residents and businesses of regional NSW during an already challenging cost of living crisis.
The Importance of Hardwood Power Poles
- 1. Durability and Sustainability: Hardwood power poles have been a critical part of our electricity network, comprising 90% of power poles in NSW. They are proven to be durable, able to withstand harsh weather conditions, and provide long-term reliability. Moreover, hardwood poles are carbon positive, making them an environmentally friendly choice compared to composite poles which have three to five times the carbon footprint.
- 2. Affordability: Hardwood poles are the most cost-effective option for maintaining our power infrastructure. The transition to composite poles has already led to increased electricity bills which has been passed on to families and businesses in NSW. During a time when electricity prices are one of the biggest pressures on household budgets, it is crucial to keep costs down.
Impact on Households and Businesses
- Cost of Living Crisis:
- Regional NSW is experiencing a severe cost of living crisis, with rising energy debt and financial hardship for many households. Electricity prices have already led to an increase in the number of families struggling to keep up with the cost of energy, with those struggling to meet electricity bills rising to 3% last quarter, with an average residential debt increase of $95.
- The Australian Energy Regulator assessed Essential Energy’s revenue proposal for the five-year period 2029. It approved an increase in power prices passed onto families and businesses from this financial year. Over a five-year period, households will pay on average $39 more in electricity prices and businesses paying an extra $84 over the same period. The cost in transition to fiberglass composite power poles is a major cost behind those price increases.
- Higher energy costs affect not only families but also businesses in regional areas, which rely on affordable and reliable power to operate. Higher electricity prices not only make running a business harder but increased electricity network costs are contributing to higher inflation across our economy with higher prices for goods and services, exacerbating the financial strain on communities.
Call to Action
Essential Energy, a state-owned corporation, operates under the directives of the NSW Minister for Energy. The State-Owned Corporations Act provides the Portfolio Minister with the authority to direct Essential Energy to undertake policy changes in the public interest. Given Essential Energy’s vast network covering 95% of New South Wales and its critical role in serving 890,000 homes and businesses, it is imperative that decisions reflect the needs and welfare of the people it serves.
We urge the NSW Government to intervene and ensure that Essential Energy continues to utilise hardwood power poles, maintaining an affordable, sustainable, and reliable power infrastructure. This action will help alleviate the financial burden on families and businesses during this cost-of-living crisis and ensure a more sustainable environmental footprint.
Sign the Petition
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