The Australian Energy Regulator today fined two Babcock and Brown Power generators a total of $40,000 for putting the safety and security of the power system at risk.
"In order for our power system to operate safely, generators need to follow instructions from the power system operator on when and how much electricity to produce," AER Chairman, Mr Steve Edwell, said today. "On two occasions this year, BBP has failed to follow those instructions.
"The AER has previously had concerns with the operation of a BBP generator, issuing three fines in November 2008. There are strict rules on how power generators must behave and breaking those rules is a matter we take seriously.
"Failure to follow the rules can damage the power supply system and risks the lights going out."
On February 11 2009, BBP's Playford power station in South Australia was instructed by the market operator to reduce power output because the electricity transmission lines in the area were at capacity. Not only did Playford fail to follow this instruction, it actually increased the amount of power it was producing.
On March 17 2009, BBP's Braemar power station in Queensland started producing power without receiving an instruction from the market operator to do so.
As a result, the AER has issued two $20,000 infringement notices. If BBP pays the $40,000, the matter will be closed and the AER will release an investigation report. Payment of the two $20,000 infringement notices does not entail an admission by BBP that it breached the Rules.
Playford power station is a 240MW brown-coal fired generator in Port Augusta, South Australia.
The AER issued an infringement notice as it considers Playford did not follow dispatch instructions on February 11 2009 in breach of clause 4.9.8(a) of the National Electricity Rules. Playford generated power above the level instructed by the market operator. Despite repeated instructions to cut back on the amount of electricity being produced, Playford continued to generate electricity above the targets issued for approximately one hour.
Braemar power station is a 450MW gas-fired power station. The AER issued an infringement notice as it considers Braemar did not follow dispatch instructions on March 17 2009 in breach of clause 4.9.8(a) of the National Electricity Rules.
Braemar generated power without receiving instructions from the market operator. While limited to producing zero electricity until 1.05 p.m on March 17, Braemar began to produce electricity at 12.47 p.m.
The maximum infringement penalty payable by a company is $20,000 per breach.