Regional families face $120 energy bill increases from electrical union demands

Essential Energy customers in regional NSW could face massive energy bill hikes if union wage demands are accepted during a cost of living crisis. Read how it could also hit the hip pocket of Sydneysiders.

More than 890,000 families in regional NSW would be hit with massive energy bill increases of up to $120 to pay for sparky wages in the middle of a cost of living crisis, if government-owned Essential Energy gives into union demands.

New modelling shows the cost of paying more than 2000 electricians working for state-owned Essential Energy would cost more than half a billion dollars, as sparkies walked off the job on Tuesday, in an attempt to force the government to agree to their wage demands.

The Daily Telegraph can reveal that should Essential Energy give in to the Electrical Trade Union’s (ETU) request, it would result in an energy bill increase of more that $120 per year for an average household within the network area. There are more than 890,000 families connected to Essential Energy’s network that spans the entire state, with the exception of Sydney, Newcastle and Wollongong.

Essential Energy customers could face energy bill hikes of $120 per year. Picture: AAP Image/Brendan Esposito

The ETU is asking for a 24 per cent wage increase over three years, plus super. It has also asked for more than 150 other items including a wet weather allowance that would see sparkies working in the rain paid double.

Union members twice rejected Essential Energy’s offer of 15 per cent over three years, an increase to 17 per cent superannuation and a $5000 one off payment. The current average base salary for an Essential Energy employee is $130,677, not including overtime.

Essential Energy’s total offer is expected to cost $247 million over three years and would be factored into energy prices outlined in their next five-year revenue proposal to the Australian Energy Regulator.

In contrast, Essential Energy estimates the total cost of the ETU’s 24 per cent wage claims alone would cost more than $275 million over three years, but the whole package, which includes being paid double time in the rain, would cost more than $580 million.

An Essential Energy spokesperson said the cost would in turn be put on consumers.

“The combined unions proposal would put upward pressure on distribution network prices in the future, impacting all Essential Energy customers,” the spokesperson said.

Premier Chris Minns warned that the union’s wage demands would significantly increase bills for Essential Energy customers. Picture: NewsWire / Gaye Gerard

Premier Chris Minns warned that should bills significantly increase for Essential Energy customers, it could lead to similar increases for other private network providers which service Sydney, Newcastle and Wollongong.

“We can’t just hand the blank cheque over to employees, even those that are in Essential Energy, because the reason is because those costs will eventually be passed on to consumers and customers in NSW,” he said.

“It will go straight from the coffers of Essential Energy onto the bills paid by energy consumers in regional New South Wales, and potentially then be spread onto Ausgrid and Endeavour and TransGrid, leading to higher power prices.”

ETU NSW/ACT Secretary Allen Hicks outside the Fair Work Commission on William Street in Sydney. Picture: Richard Dobson

Mr Minns said skyrocketing labour costs would contribute to higher inflation, and would keep energy costs high, hitting families hard.

“We can’t ask mums and dads, regular households in NSW to pay any more,” he said.

“Many of them are right on the bread line when it comes to paying off their mortgage and meeting their financial obligations.”

Due to negotiations falling under the remit of the Federal system, the NSW government would need to take the ETU to the Fair Work Commission in an effort to prevent their action.

Opposition leader Mark Speakman said the union’s “outrageous” demands and “ridiculous perks” would hurt the pockets of families in the bush.

“The ETU is holding NSW hostage with demands so outrageous they’ll send power bills skyrocketing,” he said.

“The cost of these deals won’t just be felt by big business – it’s everyday families who will pick up the tab.”

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Originally published as Regional families face $120 energy bill increases from electrical union demands