Record power demands over summer, combined with its minimal maintenance expediture, have helped to line Western Power’s pockets with an actual net profit of $199.8 million for the nine months to March 2004, up from $161.8 million for the previous corresponding period, an increase of 23.5%.
Through the Perth summer a number of 40 degree days saw energy demand skyrocket with three new record demand levels being set in early February. The new record now stands at 3004 megawatts.
However, demand outstripped supply and the city was regularly hit with spot blackouts, some lasting up to 15 hours. Western Power shifted the blame to the overworked Dampier to Bunbury Natural Gas Pipeline (DBNGP), which is currently running at capacity and was unable to deliver the extra gas necessary to supply the city.
The company recently came under heavy criticism for its safety record with WA's energy watchdog group – the Office of Energy Safety – slamming Western Power on both a grass roots and strategic level after more than 80 electricity pole fires broke out in Western Australia over the summer, causing two deaths, blackouts and numbers of bushfires.
Western Power's top two executives were sacked early this year in the aftermath of a pole top caused fire which killed two people in WA's south west, and the Corporation's bungled handling of the situation.
The Office of Energy report also singled out a failed maintenance regime at the Corporation which led to the state of disrepair of the power poles.
Nevertheless total revenue was up 6.2% at $1,328.2 million, with electricity revenue up 4.7% at $1,170.7 million as electricity sales for the period reached a record 9,852.4 gigawatt hours.
Increased electricity sales resulted in additional fuel and power purchases which, combined with higher labour and materials spending on generation overhauls and networks projects, pushed cost of sales 2.9% higher to $795.4 million.
The nine-month accounts include benefits flowing from a new gas purchase agreement, signed on March 4, which secures long-term supplies of natural gas from North West Shelf.
Other revenue, including developer and customer contributions and external chargeable works, was up 18.2% at $158.1 million.
In early February, the company had three new record electricity demand levels. Record high demand now stands at 3004 megawatts.
