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MEDIA RELEASE Under Embargo � 1pm Tuesday 9th April 2002 UNDERGROUNDING ELECTRICITY WIRES The Independent Pricing and Regulatory Tribunal today released its interim report to the Minister for Energy on the costs, benefits and funding options for undergrounding of electricity distribution wires in NSW. The Tribunal's preliminary analysis shows that the estimated costs of undergrounding the overhead wires in Sydney and other urban centres ($2.6 - $4.3 billion) are considerably greater than the directly quantifiable benefits ($400 to $480 million). Chairman of the Tribunal Dr Tom Parry said "These costs, which equate to about $1800 - $3000 per customer, plus communication cabling costs of around $2000 per customer, are lower than previous estimates. However, there is still a considerable gap between the costs and directly quantifiable benefits. The bulk of potential benefits are not easily quantifiable and largely comprise the amenity benefits of visual streetscape improvements." "These cost estimates are indicative only and are based on an optimally designed network. More detailed work will need to be undertaken before any widespread undergrounding program is commenced." The Tribunal recommends that, if a statewide undergrounding program is to proceed, it should be funded largely (about 80 per cent of costs) by the local community through local government levies. Dr Parry said, "The local community is likely to receive the large part of any benefits of undergrounding and should pay for those amenity benefits. It is the Tribunal's view that local councils may be the most appropriate avenue for raising those funds from property owners. Further work needs to be done however to identify the best way for local government in NSW to recover the cost of undergrounding from property owners." The Tribunal recommends that state government and electricity distributors should fund the remainder of the costs (about 20 per cent). The Tribunal will hold a public forum at the Wesley Centre Sydney on 19 April and provide its final report to the Minister for Energy in May. The Tribunal will accept submissions on the interim report until 26 April 2002.
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