THE Western Australian local government association (WALGA) has unanimously backed the Town of Bassendean’s motion to review the state’s underground power program.

At the WALGA annual general meeting this month, Town of Bassendean Mayor Kathryn Hamilton presented a motion calling on WALGA to undertake a comprehensive review of the state’s underground power program.

The motion was seconded by City of Rockingham Mayor Lorna Buchan and passed without opposition, receiving 205 votes in support.

The motion asked WALGA to review how underground power projects were funded and managed, and to lobby for changes it considered unfair to local governments, including who paid for the projects and who bore the long-term cost of maintaining and replacing the infrastructure.

The motion supported underground power, which is now standard in new developments and increasingly requested by established suburbs according to the Town of Bassendean.

The motion called for a fair and evidence-based review of whether the current funding and delivery arrangements remained appropriate and equitable.

A key concern raised was the financial burden being placed on local governments.

Under many underground power schemes, councils are required to make substantial upfront payments to Western Power during the construction phase, while recovering those costs from affected property owners over an extended period of years.

This effectively placed local governments in the role of financier for electricity infrastructure that they did not own or operate, creating financial exposure, borrowing costs and an ongoing administrative burden for councils.

The motion also called for legislative reform to enable Western Power to recover project costs directly from electricity consumers, rather than requiring local governments to borrow and finance the costs on Western Power’s behalf.

Western Power already has established systems for billing electricity customers.

The review will consider whether a more direct mechanism for recovering underground power project costs could provide a fairer and more efficient approach.

The Town of Bassendean’s advocacy has been informed by its experience during engagement for the Bassendean North underground power project.

Despite town support for the power project, the town says delays have contributed to the total project cost increasing from about $13.4 million to $25.7m.

The Town of Bassendean requested greater flexibility from Western Power around payment timelines to help minimise borrowing costs and reduce the immediate financial burden on residents.

These requests were not supported by Western Power according to the Town of Bassendean.

The Bassendean North underground power project is among the first projects being delivered through the state government’s targeted underground power program.

Ms Hamilton said she hoped the handling of that project could establish a good precedent for future projects.

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“This is not simply an issue for Bassendean. It is about fairness, responsibility and establishing an equitable program for future projects,” she said.

“Underground power delivers real benefits to our communities, and we support the continuation of these programs. What we are seeking is a practical and equitable approach to how they are funded and delivered.

“We are asking for the system to be reviewed so that the financial and administrative responsibilities of underground power projects sit appropriately with the organisations delivering and owning the infrastructure.

“There is also an important question about who should be responsible for the future renewal of these assets. That is something that needs to be properly examined as part of this review.”

As part of the motion, WALGA will undertake the review, seek feedback from local governments across the State and prepare recommendations for advocacy to the state government on potential legislative, policy and funding reforms.

Ms Hamilton said the town looked forward to contributing to the process and working with WALGA, the state government, Western Power and local governments across the state to support a sustainable and equitable approach to the delivery of underground power.