The Australian Energy Regulator (AER) has begun proceedings in the Federal Court against NSW Electricity Networks Operations Pty Limited (Transgrid) following an investigation into the October 2024 power system events that led to power outages in Broken Hill and surrounds.
A severe weather event in the Broken Hill area on October 16, 2024, led to the failure of the transmission line that supplies Broken Hill, requiring Transgrid’s two back-up generators to provide power.
At the time, one generator was unavailable due to maintenance and the other experienced multiple outages, resulting in 12,700 properties in Broken Hill and surrounding areas being left without power intermittently until October 31, 2024.
Related article: AER investigating Broken Hill power system event
The AER alleges that Transgrid breached the National Electricity Rules by failing to:
- arrange for management, maintenance and operation of its network to minimise the number of interruptions by using good electricity industry practice between June 22, 2022, and October 28, 2024 (Clause 5.2.3(e1)(3))
- arrange for power to be restored as soon as possible between October 17, 2024, and October 28, 2024 (Clause 5.2.3(e1)(4))
- ensure its system complied with its NSW transmission operator’s licence between July 1, 2024, and June 30, 2025 (Clause 5.2.3(f)).
The AER also alleges that Transgrid failed to institute and maintain a compliance program for the generators in the period between November 13, 2022, and October 27, 2025 (Rule 4.15(b)).
AER chair Clare Savage said, “The power disruptions in October 2024 had far-reaching and serious impacts across the Broken Hill region, especially given its geographical isolation.
“It’s absolutely critical that network service providers are prepared to adequately manage and maintain electricity supply to their customers.
“Today’s filing of court proceedings follows a thorough and complex investigation requiring significant legal and technical expertise, and close collaboration with the NSW Independent Pricing and Regulatory Tribunal,” Savage said.
The AER is seeking pecuniary penalties, declarations and costs.
Related article: Broken Hill transmission line reconstruction powers ahead
A Transgrid spokesperson told Energy Source & Distribution, “Transgrid takes its obligations very seriously to provide a safe, secure and reliable electricity supply to the people of NSW and the ACT.
“Since the extreme weather event last year, we have worked closely with local and state government stakeholders on securing a sustainable, long-term solution for energy security and reliability for communities in Far West NSW.
“We have worked collaboratively and transparently with the AER and IPART over the past year and will continue to facilitate the best possible outcomes for consumers as we work to provide long-term, sustainable energy solutions for the people of NSW.
“As the matter is before the Court, it would not be appropriate for Transgrid to comment further.”
