2014-12-09 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                     9 DECEMBER 2014


CORPORATE SERVICES DEPARTMENT REPORTS
Procurement and Fleet
8                      INDICATIVE COST REDUCTION FOR STREETLIGHT NETWORK CHARGES
CUMENT IN FORMA TION




Author                           Manager Procurement / Fleet, Phill Parkman
                                 Corporate Services Department

Index                            ECM/ Financial Management/ Electricity Accounts

Attachments                      Nil


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Manager Procurement / Fleet to the Planning & Organisation
Committee Meeting dated 9 December 2014 regarding the anticipated cost reduction achieved
by LGAQ / Local Buy for Council’s street lighting charges applicable to the 2015/16 budget.


REPORT
In its submission to the Australian Energy Regulator (AER), Energex have proposed a number of
decreases and increases for street light Alternate Control Service (ACS) charges for the 2015-
2020 regulatory control period.

The proposed charges for 2015/16 would result in a:
 Decrease of 27% for non-contributed street lights classified as Major (generally major
   collector / arterial roads);
 Decrease of 16% for non-contributed street lights classified as Minor (generally local streets);
 Decrease of 15% for contributed street lights classified as Major; and
 Increase of 4% for contributed street lights classified as Minor.

Note: Non-contributed lights are those designed, constructed and maintained by Energex (often referred to as
Rate 1). Contributed lights are those designed and constructed by Councils/developers and gifted to Energex
who own and maintain thereafter (often referred to as Rate 2).

What this will mean for Noosa is the potential to save approx $128,046.00.

A breakdown of the savings is shown in the table below:
Rate                     Classification   Daily savings    Number of Lights   Estimated Annual Savings
                                          per light                           (excl GST)
1                        major            $0.32            457                $53,378
1                        minor            $0.08            1,929              $56,327
2                        major            $0.05            1,005              $18,341
2                        minor            $-               1,762              $-
3                        major            $-               22                 $-
3                        minor            $-               397                $-
Total                                                      5,572              $128,046


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