Electrical Trades Union: Broken Hill power outage shows Transgridā€™s ā€˜incompetence and greedā€™

November 5, 2024
Issue 
Workers from across the state were deployed to Broken Hill to restore emergency towers (pictured) to restore power. Photo: Transgrid

About 20,000 people in Broken Hill and surrounding communities in far western New South Wales were left for more than a week without power, after a major windstorm on October 17 brought down seven electricity transmission towers.

The region then suffered fromĀ Ā because one back-up diesel generator was offline, and the other failed due to demand.

Recriminations and counter recriminations have been levelled at private energy companies Transgrid and AGL, owners of the Broken Hill Battery Energy Storage System, which isĀ Ā have a backup.

It has since emerged that AGL had disabled it,Ā ,Ā but under mounting pressure, wasĀ .

Broken Hill Mayor Tom Kennedy alleged the generators were not maintained adequately. Labor Premier Chris Minns blamed the former Coalition government for privatising the electricity assets. The Coalition asked why the second generator had been offline.

Ā why, with wind and solar farms near-by, they could not access energy.

The Australian Energy Regulator (AER) and the Independent Pricing and Regulatory Tribunal (IPART) are investigating whether TransgridĀ breached its obligations or licence requirements.

If found liable, it could be fined up to 10% of its annual turnover, estimated to be up to $90 million. IPART can issue fines of up to $250,000 for breaches, orĀ it could change Transgridā€™s licence conditions.

Transgrid was established as a statutory authority by the Electricity Commission of NSW in 1995, when the deregulation/privatisation process began. Kristina Keneallyā€™s Labor government controversially sold the energy retail arm in 2010 forĀ $5.3 billion, but kept electricity infrastructure in public hands.

The Coalition sold Transgrid for $10.3 billion in 2016 to a consortium, comprising a Canadian pension fund, the Abu Dhabi Investment Authority and local infrastructure funds.

Electrical Trades Union NSW/ACT SecretaryĀ Ā of poor maintenance. He said power workers have long saidĀ ā€œBroken Hillā€™sĀ power supply was a disaster waiting to happenā€.

He said Transgridā€™s less frequent maintenance work ā€œmeans more events like this are possibleā€. He accused the company of ā€œgreed and incompetence,ā€ saying it was putting the lives of the people of Broken Hill at risk.

Essential energy andĀ Transgrid workers from all over the state have been helping get power back up in Broken Hill.

±·³§°ĀĢżĀ said on October 29 she had heard reports the network infrastructure was ā€œpractically disintegratingā€.

Transgrid made more than $1.12 billion in the last financial year, but the real wages of Transgrid workers have declined by 10.3% since 2015.

The Greens want a parliamentary inquiry into the ā€œcircumstances of this colossal failureā€.

Ā said governments cannot escape responsibility for delivering essential services, such as electricity, even in a fully privatised system. He pointed to the South Australian 2016 black-out, a system failure, in which the government ā€œre-entered the electricity businessā€ and sought Teslaā€™s help to construct the worldā€™s first big battery.Ā 

He said as responsibility for energy is shared between private transmission, distribution and generation companies, the Australian Energy Market Operator and the AER, the energy market is ā€œmore prone to failuresā€.

Quiggin said that all aspects of the market energy system need to be reconsidered, ā€œbeginning with the privatisation of monopoly assets, such as transmission and distributionā€.

ā€œReturning these assets to public ownership would allow for a return to a more integrated electricity supply industry.ā€

His view is that a public operator would continue to own the poles and wires but the mix of ā€œbase loadā€, ā€œpeakā€ and ā€œreserveā€ energy supply market ā€œwould be partially replaced by long-term power purchase agreementsā€, which include an obligation on private companies to provide continuity of service and system stability.

While Quiggin is not arguing for public ownership, he did say that ā€œre-nationalisation is perfectly within the financial capacity of Australian governmentsā€ because it is a ā€œlow-riskā€ asset.

The record speaks for itself: NSW governments should never have sold publicly-owned power assets.

As Hicks said of the Broken Hill power failure: ā€œThis is what happens when you outsource essential infrastructure to a private company that cares more about its bottom line than actually delivering for the people ā€¦ This isnā€™t a case of bad luck ā€” this isĀ a case of incompetence and calculated greed.ā€

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