- The Australian Energy Regulator (AER) is the independent national regulator
that oversees electricity networks. It has determined that Ausgrid's
operational funding should be reduced by $170 million a year and capital
funding has been cut by $550 million over a five year period. This will result
in an average reduction of $165 a year in a typical residential customer's
electricity bill.
The AER's reductions to capital and operating expenditure
mean there are 1,100 jobs across Ausgrid's network (across Sydney to
Muswellbrook and the Upper Hunter) that are unfunded from 1 July 2015. On 9
September 2015, Ausgrid started consultation with employees and unions on a
first Phase of 550 redundancies, including 79 positions in the Hunter region.
Ausgrid is now implementing the Phase 1 redundancy program using voluntary
redundancy.
Subject to the Australian Competition Tribunal review of the
Australian Energy Regulator Revenue Determination, further Phase 2 job
reductions are anticipated.
Ausgrid is currently borrowing $12.6 million
per month to pay for jobs left unfunded by the AER's regulatory
determination.
- No.
- Yes. Ausgrid has been providing support to staff categorised as
re-deployees including individual career transition support, job readiness
workshops, resume preparation, coaching sessions, interview techniques, and
training and skills assessment. Ausgrid is also providing personal support for
employees impacted by its transition program. Families and small businesses in
the Wallsend community will have their average network charges reduced by $165
p.a. and by $246 p.a. respectively as a result of the AER's determination.
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