'Out of the question': Council's underground powerline plan's $11m blow-out

But to do that the council needs to first change the planning scheme.

The initial plan to move existing high-voltage, and new powerlines, north of the Merri River underground was adopted 15 years ago - a decision that was then estimated to cost $1.5 million.

But the cost has now ballooned to $11 million - something councillors have labelled as "extravagant" and "exorbitant".

The issue has prompted mayor Ben Blain to call on the state government to step up and do more to help the city meet the challenges of future developments.

Chief executive officer Andrew Mason said in order to allow the powerlines to instead go overhead, a planning scheme amendment was needed so the council could change the development contribution plan.

A contribution plan governs who pays for what infrastructure in housing developments.

Mr Mason said the review of the North of the Merri development contribution plan found underground high-voltage powerlines were both "technically difficult" and "very cost prohibitive".

Councillors voted unanimously on Monday July 1, 2024 to seek authorisation from the state planning minister to go ahead with the change.

Cr Debbie Arnott said the move would certainly would save council some money.

"The idea of powerlines going underground is very appealing but the cost is just too extravagant - $11 million to put them underground compared to realigning them overhead - $2 million," she said. "It's a significant saving to be made."

Cr Arnott said a change to the policy was necessary to support further development and delivery of housing to the north of the Merri growth area.

Wollaston Road will soon get a major upgrade to cater for the increased traffic as the city continues to expand northwards with roundabouts set to go in.

Cr Angie Paspaliaris said the $11 million cost to underground the high-voltage powerlines was an exorbitant amount of money.

"The difference would go to so many other important services and pieces of infrastructure," she said.

Cr Richard Ziegeler said as desirable as underground wiring was, he couldn't reconcile the fact it was $11 million worth.

"Given that it would fall to council to find, it's just out of the question," he said.

Cr Blain said the city faced challenges.

"We need housing and we need enabling infrastructure," he said.

"The ability for council and developers to predict the cost of infrastructure - which in this case was nearly 15 years ago - is a challenge which there will be shortfalls, especially when we've been through such a high inflationary environment.

"I don't see this as something that landholders should be having to pay.

"I think there is a role for the state."