Higher costs are expected to flow through to customers as electricity companies find it increasingly difficult to source insurance due to increased catastrophic weather events and aging infrastructure.
Energy Networks Australia has submitted to the Royal Commission into National Natural Disaster Arrangements that the availability of insurance cover in high-risk areas has become increasingly difficult, and the higher costs may flow through to consumers.
In a submission to the royal commission, ENA say they have been notified of the likely "complete withdrawal" of insurance lines in future years.
Within the past 12 months at least eight specialist insurers have either pulled out of, or drastically reduced capacity on bushfire risks.
ENA says insurance is also being offered at much higher prices.
A Powercor spokeswoman said the company's operating expenditure was proposed to increase, with continuing issues in the global insurance market being one of the main contributors.
"Premiums have increased by up to 35 per cent for the past two years due to increasing catastrophic events worldwide," she said..
"We are also proposing to increase asset replacement by 53 per cent to $695 million. This includes:
Increasing pole replacements to 20,878 and refurbishing a further 18,892 over the five years,
Regular inspection and replacement of high-volume assets like overhead conductors, service lines, fuses, surge-diverters and pole-top structures, and
Our annual bushfire mitigation program which remains a high priority and includes the completion of commitments to the 2009 Victorian Bushfire Royal Commission."
The spokeswoman said assets were replaced as required based on risk assessments.
"The major initiatives proposed demonstrate a preventative approach to risk management focussing on both condition and age factors.
"Efficiencies in our operations mean we can offer this increased investment in the network while reducing costs to customers.
"We propose a six per cent real price decrease for residential distribution and metering charges over five years."
A series of bushfires on St Patrick's Day 2018 in south-west Victoria that led to revelations about Powercor's lack of infrastructure maintenance.
Powercor has 580,000 polces in its distribution system and in 2017 just 1153 poles were replaced despite the majority of Powercor's poles being of inferior quality and having or about to reach their use-by dates.
An independent inspection found a see through pole just metres from the rotten pole that snapped causing The Sisters/Garvoc Bushfire.
And late last year during a Supreme Court trial in Warrnambool a secret Powercor study was revealed that recommended an up to eight-fold increase in the replacement of poles.
Powercor has already significantly shifted its position, agreeing to double pole replacements, shortened the time frame on check cycles and lifted maintenance standards, in part due to intense lobbying from the south-west community after the St Patrick's Day bushfires.
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