CS Energy has paid a $67,800 infringement notice issued by the Australian Energy Regulator for an alleged breach of the National Electricity Law (the Electricity Law) for operating a generating system without the required regulatory approval.
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The alleged breach was discovered as part of the AER’s ongoing investigation into the power system event involving the trip of multiple generators and high-voltage transmission lines in Queensland following an initial plant issue at the Callide C Power Station on 25 May 2021.
This alleged breach is distinct from the AER’s ongoing investigation into the events that led to the 25 May 2021 power system event.
Any entity that owns, controls or operates an electricity generator must apply to the Australian Energy Market Operator (AEMO) to be a Registered Participant for the activity or for an exemption from registration.
It’s alleged CS Energy breached section 11(1) of the Electricity Law by operating the Callide C Power Station without being a Registered Participant or having an exemption from registration. CS Energy has been operating Callide C Power Station for a number of years, including on 24 May 2021, but only submitted an application for exemption following the AER’s investigation.
CS Energy subsequently obtained this exemption in September 2023.
AER Board Member Justin Oliver said, “Failure to obtain the appropriate registration and exemptions can impede AEMO’s ability to track changes in the control or operation of a generating system.
“This reduced visibility could cause operational issues for AEMO including its ability to contact the appropriate staff that are responsible for the operation of generating systems to raise important matters including compliance issues and activities.”
CS Energy CEO Darren Busine said CS Energy took its responsibilities under the NEL extremely seriously and had worked cooperatively with the Australian Energy Regulator to resolve the matter.
“Due to an apparent historical oversight, CS Energy did not hold the required exemption from registration as the operator of Callide C,” Busine said.
“We acted promptly to seek the required exemption as soon as the oversight was brought to our attention.
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“We are unaware of any impact caused to consumers or other market participants as a consequence of us not holding the relevant exemption.”
The incident that occurred on Callide Unit C4 in May 2021 was unrelated to CS Energy not holding the relevant exemption at the time.
