RAJ REPORT

Electricity Jobs will go anyway at Ergon once the Australian Energy Regulator cuts power prices in Queensland—— Jobs axed, asset prices slashed on NSW power price cut—————–“The demand for electricity is falling ,which puts less strain on the networks and requires less investment to provide a reliable supply of energy,” Paula Conboy, the newly installed chairwoman of the regulator said. “These draft determinations reduce the spending proposals to ensure that only prudent and efficient costs are recovered from consumers.” NSW energy distributors are the first to be assessed under the new review process, with South Australian and Queensland networks to follow.

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On Thursday, the Australian Energy Regulator disclosed plans to cut power prices in NSW by 10 per cent in 2015-16 that will flow from a decision to impose heavy cuts of up to 35 per cent to the budgeted spending of the power companies as well as changing interest rate assumptions.

“The demand for electricity is falling ,which puts less strain on the networks and requires less investment to provide a reliable supply of energy,” Paula Conboy, the newly installed chairwoman of the regulator said. “These draft determinations reduce the spending proposals to ensure that only prudent and efficient costs are recovered from consumers.”

NSW energy distributors are the first to be assessed under the new review process, with South Australian and Queensland networks to follow.

The heavy cut outlined by the AER could result in as many as 4600 jobs being axed – 2400 from Ausgrid, 1500 from Essential Energy and another 700 from Endeavour Energy, Vince Graham, the head of Networks NSW warned.

“I can’t cut 4600 jobs tomorrow and continue to safely operate the network,” Mr Graham said. “I’m not fundamentally opposed to the direction the AER is proposing … but we need to sensibly transition over time.

“Some aspects of the determination were predictable. What wasn’t predictable was the new benchmarking tool which has not been discussed. That’s where the regulatory shock has come in.”

Actew-AGL head Michael Costello described the benchmarking as “highly questionable”.

Read more: http://www.smh.com.au/business/jobs-axed-asset-prices-slashed-on-nsw-power-price-cut-20141127-11vayl.html#ixzz3QXPaN7k6

 

 

Jobs axed, asset prices slashed on NSW power price cut.

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