The Australian Energy Regulator (AER) has commenced an investigation into the recent power system events that affected transmission infrastructure supplying Broken Hill and surrounding areas.
The AER is conscious of the impact the collapse of seven transmission towers and recent power outages has had on members of the Broken Hill and surrounding communities.
The investigation will review whether there has been any potential breaches of the National Electricity Rules.
We will also liaise with the Independent Pricing and Regulatory Tribunal (IPART) - who are investigating Transgrid’s compliance with licence conditions and other obligations under state legislation - to ensure a coordinated approach to our investigation.
The National Electricity Rules require transmission and distribution networks to ensure their systems and infrastructure are properly operated and maintained, including by using good industry practice and undertaking compliance programs to ensure reliable operation and adherence to performance requirements.
As an economic regulator, every 5 years we determine whether a business’ proposal is a reasonable and realistic forecast of how much money it needs for the safe and reliable operation of the network. The regulatory framework also provides the ability for the businesses to maintain network reliability and resilience. We will review to determine whether capital and operating expenditure is consistent with good industry practice.
In April 2022, given the increased community concerns about network resilience and the potential impact of extreme weather events, we released a short guidance note on the key issues of network resilience. In September 2024, we completed a review of the Value of Network Resilience to help inform networks about appropriate investments to enhance network resilience against extreme weather events, including both the ability to withstand and recover from such events.
The AER will complete its investigation as soon as possible.