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Electricity network investment needed to prevent blackouts: industry

Story Added : 02nd February 2009

The energy sector says power blackouts will increase unless federal and state energy ministers move to protect investment in electricity infrastructure.

The Australian Energy Regulator released a draft decision late last year that will reduce the rate of return allowed for electricity assets.

The Energy Networks Association's Andrew Blyth has told a Senate inquiry the move will make it harder to attract investors.

He says it comes at a time when the sector needs $50 billion to meet the Federal Government's carbon emissions goals.

"More blackouts will happen unless urgent action is taken by energy ministers this Friday to agree to an independent assessment of a recent decision by the National Regulator," Mr Blyth said.

"[The] decision will make it much more difficult for ageing infrastructure to be replaced by new, stronger and smarter energy networks."

Mr Blyth says if investment falls off, power blackouts will become more likely.

"We all face an increased risk of being left to sweat out decades of long, hot summers," he said.

"We know it is going to get warmer and we have to prepare for that - this last week has been a warning to us all.

"We need to act today to climate change proof our networks and to be climate change ready."

Story Added by ABC.
Date Added : 02nd February 2009

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