Regulator to Probe NSW Power Outage That Left Thousands Without Power for Days

An electricity tower going through a rural property in New South Wales, Australia on Oct. 17, 2017. AAP Image/Brendan Esposito

The Australian Energy Regulator (AER) will investigate a days-long power outage in the regional town of Broken Hill left about 20,000 people without electricity.

In the far west of NSW, residents were left in the dark for days after seven Transgrid transmission towers were destroyed by a severe storm event on Oct. 17.

The national regulator confirmed it had started investigating the “recent power system events” that impacted transmission infrastructure to the area.

“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 energy regulator said in a statement.

“The investigation will review whether there has been any potential breaches of the National Electricity Rules.”

Transgrid To Be Probed on Maintenance Standards

As part of the investigation, the AER will collaborate with the NSW government’s Independent Pricing and Regulatory Tribunal (IPART) to ensure coordination.

“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,” the AER said.

Both NSW Energy Minister Penny Sharpe and Premier Chris Minns visited the region in recent days, as the incident triggers debate about privatisation of the electricity grid in NSW.

On Oct. 24, IPART had announced its probe into the reliability of transmission infrastructure.

“IPART’s investigation will include Transgrid’s compliance with licence conditions and other obligations under the Electricity Supply Act 1995 and Electricity Supply (Safety and Network Management) Regulation 2014,” IPART said.

A general view of the regional town of Broken Hill in New South Wales, Australia, on Sept. 24, 2021. Jenny Evans/Getty Images

“The investigation will also consider Transgrid’s management of its assets, including the transmission towers and backup generators and whether the current failures of supply at Broken Hill breach the reliability standards included in its licence.”

IPART warned that their enforcement powers, should there be any breach of licence conditions, could includes fines of up to $250,000 or licence cancellation.

Actions Taken by Transgrid, Government So Far

In response to the blackout, NSW government and Transgrid offered a $4 million support package for households and small businesses.

Transgrid said on Oct. 28 that emergency response crews have now installed seven emergency response towers in the Broken Hill area with 120 specialists working 24-hours a day on rotation.

Head of Transgrid Far West Operations Response Sam Pickering said, “This is significant progress, and I want to thank our team who have mobilised from across Australia and who continue to put in an enormous effort to reinstate the main power supply to Broken Hill.”

“With the solid progress made over the weekend, we are continuing to concurrently review the scheduling of energisation of the primary power supply with potential to complete slightly ahead of the current date of 6 November.”

Further, Transgrid advised it had improved the stability of backup power supplies to Broken Hill, with a grid-scale battery dispatching power to provide extra capacity in evening peak periods.

“As load on the generator increased to safe operating limits last night, the Transgrid control room discharged the grid-scale battery into the local network, helping ensure a stable flow of power to the community,” Pickering said.

“This is a positive step in building further resilience into the network. This is also the first microgrid operating within the National Electricity Market.”

In the evening of Oct. 18, the NSW Department of Energy advised generators had “unexpectedly tripped” in response to storm activity.

“Crews from Essential Energy are working to restore power. We'll provide an update once power is restored,” the department said.

By 9.15 p.m., the department advised the power had been restored, and encouraged the community to lower power use in peak times.

Residents were told to please turn off any non-essential appliances, use lights only in occupied rooms, and consider raising the air conditioner set point temperature to 26 degrees.