Release Date: 29 September 2006
Western Power today announced an after-tax profit of $17 million dollars for the three months to July 2006 in its first financial period since the formation of the new business.
Significant increases in the cost of materials and services due to the booming State economy impacted upon the business.
Western Power's Chairman Peter Mansell said Western Power, like many of Western Australia's major infrastructure businesses, is experiencing the effects of the State's sustained high growth.
"The cost of materials and services has increased at a rate that was higher than forecast which inevitably impacted on Western Power because the business is expanding its infrastructure at an increased rate to meet the demands of growth in WA", Mr Mansell said.
"These cost increases, albeit at a higher than forecast rate, were anticipated and through an extensive reform program the business has successfully offset some cost increases by entering into long-term contracts with suppliers to lower the costs of materials. It has also improved efficiencies in many of its work practices to deliver benefits.
"In addition the business has recruited local and overseas labour and is pursuing alliances with contractors to meet the increased demand for electricity connections and network expansion being driven by the boom.
"These and other significant changes to the business enable us to focus on delivering network access services to our customers, safely, reliably and efficiently," he said.
Western Power maintains, upgrades and expands one of the world's largest isolated transmission and distribution networks, is the system operator responsible for maintaining the integrity of the power system and provides network access services to public and private generators, retailers and other users.
Western Power recommends a dividend to Government of $8.5 million dollars in its first payment since the formation of the new business.
A copy of the 2006 Annual Report will be available online mid October 2006.
If you have any questions regarding this media release please email us: media@westernpower.com.au
Page update on 29 September 2006
