The Independent Pricing and Regulatory Tribunal (IPART) has commenced an investigation into transmission network operator Transgrid’s compliance with regulatory obligations after a storm destroyed transmission towers and left the city of Broken Hill without power, with the region’s only backup emergency generator failing.
A severe storm destroyed seven Transgrid transmission towers on Thursday 17 October, causing significant disruption to the supply of electricity to Broken Hill, Tibooburra, Wilcannia, Menindee, White Cliffs and several other surrounding communities.
The region is primarily relying on Transgrid’s large-scale back-up generator while the company constructs temporary towers which are expected to be in place by 6 November 2024, weather permitting.
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Transgrid’s large-scale back-up generator tripped on Monday and has since been restored. This means the region has electricity supply, however it is possible power could be reduced in selected areas for short periods of time to protect the network from wider outages (known as load shedding).
IPART has advised it is not yet clear whether Transgrid has breached its licence conditions.
The investigation will consider Transgrid’s management of its assets, including the transmission towers and back-up generators and whether the current failures of supply at Broken Hill breach the reliability standards included in its licence.
The NSW Government has declared an Electricity Supply Emergency for the Far West region of NSW under the Electricity Supply Act (1995). This is the latest step in the whole-of-government response to this natural disaster and is effective until 10 November.
This declaration will allow the Minister for Energy to give directions that are considered to be necessary to respond to the electricity supply emergency. As an example, directions could be made to facilitate the delivery of equipment and fuel to the area.
The NSW Government is making the declaration in case additional measures are required, if the back-up supply of electricity to the region is further interrupted.
New South Wales Premier Chris Minns said, “I want the community in the Far West region to know the NSW Government is working around the clock with the local member to fix this problem and ensure this doesn’t happen again.
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“Our number one priority is to get electricity back and to get the community back on its feet.
“When this utility was privatised, obligations were placed on it to ensure reliability standards are met in the case of a natural disaster.
“An investigation has commenced to understand what has happened and what further actions can be taken to ensure this doesn’t happen again.”
