$20 million for councils for street lighting

Mines and Energy Minister Geoff Wilson has allayed concerns raised by Logan City Council on Channel 9 News tonight over the cost of electricity for its street lighting.

Minister Wilson said the State Government had set aside $20 million over two years to help councils meet the costs of their street lighting electricity bills in the competitive energy market.

In the past, charges for providing electricity for councils’ street lights in south east Queensland did not reflect the true cost of supplying electricity.

“Under the old system, ordinary householders were indirectly footing the bill for large councils’ street lighting electricity charges through cross-subsidisation. It’s now a level playing field,” Mr Wilson said.

Logan City Council will receive $1.4 million in 2008/09 to help offset the new charges and $734,000 the year after.

“Street lighting customers were the only ones in south east Queensland that couldn’t choose their electricity retailer.

“They will now be able to shop around for a deal that best suits them.

“Because street lighting is used at night when there’s low electricity demand, it will be easier for them to get a better, more competitive deal,” he said.

Minister Wilson said Energex was also undertaking a street lighting trial with some councils in the south east corner, looking at ways for councils to save energy and save money.

“The new system only applies to south east Queensland councils serviced by Energex,” he said.

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