LEDs Ready to Roll in SP Ausnet

Paul Brown

Distribution Business SP Ausnet has responded to Local Government requests to make available an LED street light option for residential streets. SP Ausnet have today announced maintenance pricing for the newly approved LED which means that councils can now choose this longer life and more energy efficient choice. 

>> June 2014 UPDATE: A group of Victorian councils have worked to reduce these OMR prices significantly with the potential to save $6 million over the life of the new lights.

SP Ausnet have developed maintenance (OMR) pricing for the newly approved 18W LED. These are $29.34 for the Central Region and $30.90 for the North & East Region. 

As with the other LED pricing that has been released in Victoria recently there are likely to be some exclusions such as material failures. Ironbark will be working over the next week to clarify the inclusions and exclusions. However, SP Ausnet have indicated that the service level for these lights is: 

  • Visor wash on years 5, 10 and 15
  • PE Cell replacement on year 10
  • Luminaire life 20 years (SP Ausnet replacement at end of physical life)

It is not unusual for the costs of the OMR to not reflect some of the future costs. For example, in some jurisdictions the LED, T5 and CFL OMRs do not cover the future failures of their control gear (ballast). Because of this, due diligence should be included through an assessment of the expected lifespan, expected mortality rate and cost of individual components of an LED.

Due to requests from several councils in the SP Ausnet region, Ironbark are updating our financial modelling to include this change and to estimate additional LED OMR costs for the items not currently included in these rates (but which will still form part of the life cycle costs for councils). 

As always we recommend assessing the financial implications of this LED option compared to the other energy efficient lighting options and the incumbent lights. We would not recommend choosing LED options (or any lighting type) without proper assessment of a revised financial business case. For assistance with this simply give us a call and we can look at quickly putting the options together.