Grid renewal generates billion-dollar shock as costs of energy transition become clear

By energy reporter Daniel Mercer

Consumers are looking at a major increase in spending on power networks across Australia.(ABC News: Hugh Hogan)

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Australian consumers have been told to brace for big hikes in their power bills after a watchdog revealed the true costs of overhauling the grid to deal with the renewable energy transition.

Key points:

• Experts say tens of billions of dollars in extra spending will be needed on poles and wires
• An economic watchdog has ruled in support of $1 billion in extra spending by WA's network utility
• Across Australia, network providers are tipped to seek big increases in funding to handle the renewable energy surge 

In a decision heralded as a landmark, Western Australia's economic regulator this month said the state's major electricity network provider should be allowed to spend $9 billion over the next five years – $1 billion more than it requested.