Services Australia
Marinus Link Cost Escalation Forecasts to 2030/31
Pages
64
Time to read
146 mins
Publication
Language
English
Pages
64
Time to read
146 mins
Publication
Language
English
This technical report prepared by Oxford Economics Australia for Marinus Link outlines forecasts of labour and material cost escalations relevant to electricity transmission networks and undersea cabling from 2023/24 to 2030/31. The forecasts are intended to assist Marinus Link in developing their operating and capital expenditure forecasts, which will be included in a revenue submission to the Australian Energy Regulator (AER) due by the end of February 2024. The report details the expected wage growth in the Victorian and Tasmanian Electricity, Gas, Water and Waste Services (EGWWS) sector, projecting an average annual increase of 3.7% to 3.8% from FY25 to FY31. It also discusses factors influencing wage growth, including the capital-intensive nature of the utilities sector, strong union presence, and high demand for skilled labour, which is expected to drive wages above the national average. The report incorporates the latest data and macroeconomic forecasts as of early January 2024.