Premier moves to sink foundation of pole price rise
Victorian Premier Denis Napthine wants to stop power companies from charging customers for work to improve the safety of powerlines in bushfire-prone areas.
Dr Napthine says it would be a “travesty” if the efforts to fix network hardware led to higher costs for households.
Electricity distributors Powercor and AusNet Services received State Government grants to fix and replace power lines in bushfire danger-zones, and sya they are being charged extra income tax as a result.
So, the companies want to pass on around $14 million in extra costs to customers, and have applied to the energy regulator for permission.
But in a weekend interview for Fairfax Radio, Dr Napthine said such a move would be unacceptable.
“It would be a travesty if money that the taxpayers of Victoria have given to power companies to make powerlines safer [led to price rises] ... they shouldn't have to be taxed on that,” he said.
“I think this is something that needs to be sorted out with the tax office and the Federal Government.
“It just seems ridiculous that when the State Government gives taxpayers' money to the power companies to help them make power lines safer across Victoria following Black Saturday, that they have to pay tax on it.
“They're then seeking to get power price rises as a result. I mean that is a nonsense and we need to fix it.”
Dr Napthine went into a meeting with Federal Treasurer Joe Hockey shortly after the radio interview, and after its conclusion Dr Napthine said Mr Hockey had told him there was no justification for the price rise.