Victorian households and businesses are being lined up for another cost-of-living hit because of the Allan Labor Government's inability to manage projects.
The Australian Energy Market Operator (AEMO) has identified rising electricity infrastructure and energy delivery costs in its latest report on the development of the national electricity market between now and 2050.
It comes as the Labor Government rams through new legislation with less than two hours debate that will threaten Victorian farmers with huge fines if they deny access to their properties for transmission line work.
The AEMO report has found transmission costs have risen, particularly for overhead lines as has the cost of building new essential infrastructure to meet consumer needs and government energy and emissions targets.
The report states that "AEMO recognises that increases in costs for electricity transmission network development would impact bills for electricity consumers."
One example of the potential for massive cost blowouts is the VNI West project in the Victoria's northwest.
The project could cost anywhere between $5.2 and $11.4 billion despite the proponents estimating the cost at $7.6 billion. The upper limit of the AEMO estimate is $10.605 billion.
Shadow Minister for Energy, David Davis says "on the basis of this report there is no doubt that households and businesses will see significant increases in their energy bills in the months and years ahead.
"Like VNI West, there are other projects showing similar cost trends which must be accounted for as part of the real cost of low emission technology that is underpinned by these massively expensive transmission projects.
"Given the Allan Labor Government's inability to manage projects it's obvious Jacinta Allan will fund low emissions technology and the infrastructure that supports it through levies on household and business energy bills.
"The Premier and federal Labor must be open and transparent with Victorians about the impact on household budgets and business costs from projects like VNI West," Mr Davis said.
Leader of The Nationals, Danny O'Brien said the cost blow outs would add to pressure on a government already seeking to impact Victorian farmers' property rights to get its failed energy policies back on track.
"Labor wants to slap farmers with $12,000 fines for refusing access to their private property and to give itself the power to break locks and smash gates to get access.
"These are not the actions of a government that respects regional Victoria. It is proposing all stick and no carrot and that has naturally angered landholders who feel they are being disrespected.
"The Nationals and Liberals oppose this Bill and will repeal it if elected next year."
