Power and Water’s $1.2 billion debt one third of Territory’s total
THE embattled Power and Water Corporation is saddled with $1.2 billion of debt after posting a $200 million loss last financial year
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THE embattled Power and Water Corporation is saddled with $1.2 billion of debt after posting a $200 million loss last financial year.
That’s up substantially from the previous year’s loss of $35 million.
The utility’s precarious financial position was revealed in its annual report which showed its liabilities exceeded its assets by more than $215 million.
The $1.2 billion debt is almost a third of the Territory’s net debt of $3.8 billion.
But the corporation insists it’s not all as bad as it seems.
In a statement, a government spokeswoman said the consolidated net loss was primarily the result of a devaluation of the utility’s assets by $243 million.
Excluding the asset write down and the operations of its not-for-profit subsidiary Indigenous Essential Services, Power and Water would have posted an after tax net profit of $23 million.
The Territory Government ploughed an additional $10 million through an equity contribution into Power and Water.
Despite the loss and the fact the Government had to tip extra money into the organisation, the utility still paid out a $9 million dividend during the year.
Treasurer Nicole Manison said the Labor Government had no plans to increase retail power prices.
“When we came to government we promised to keep power prices at CPI – we are sticking to that promise,” Ms Manison said.
Opposition Leader Gary Higgins said Power and Water’s debt position was “highly concerning”.
“Just as concerning is the $200 million loss for the year that PWC declared and the $1.6 million increase in employee expenses.
“The Gunner Labor Government’s own Langoulant report stated that government- owned corporations should be required to operate within their means and on a commercial footing.
“The annual report shows that they have done neither and the situation has only grown worse in the past year.”
The Langoulant report, which outlined the Territory was on track to reach alarming levels of debt without substantial reform, was authored by Power and Water’s own chairman, former WA under treasurer John Langoulant.
“A CLP Government would follow the Langoulant recommendation that government-owned corporations like PWC face escalating sanctions for not meeting financial goals on reducing debt, lowering operating expenses and adopting a viable commercial operating structure.”
Power and Water’s chief executive Michael Thomson was on Monday sacked, alongside his Territory Generation counterpart Tim Duignan after an investigation into a 19-hour blackout in Alice Springs in October.
The investigation found the blackout was the result of equipment failure and human error.
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