Electrical Trades Union: Broken Hill power outage shows Transgrid鈥檚 鈥榠ncompetence and greed鈥

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 from聽聽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 is聽聽have a backup.

It has since emerged that AGL had disabled it,聽,聽but under mounting pressure, was聽.

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.

聽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 Transgrid聽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, or聽it could change Transgrid鈥檚 licence conditions.

Transgrid was established as a statutory authority by the Electricity Commission of NSW in 1995, when the deregulation/privatisation process began. Kristina Keneally鈥檚 Labor government controversially sold the energy retail arm in 2010 for聽$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 Secretary聽聽of poor maintenance. He said power workers have long said聽鈥淏roken Hill鈥檚聽power supply was a disaster waiting to happen鈥.

He said Transgrid鈥檚 less frequent maintenance work 鈥渕eans more events like this are possible鈥. He accused the company of 鈥済reed and incompetence,鈥 saying it was putting the lives of the people of Broken Hill at risk.

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

狈厂奥听聽said on October 29 she had heard reports the network infrastructure was 鈥減ractically disintegrating鈥.

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 鈥渃ircumstances of this colossal failure鈥.

聽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 鈥渞e-entered the electricity business鈥 and sought Tesla鈥檚 help to construct the world鈥檚 first big battery.聽

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 鈥渕ore prone to failures鈥.

Quiggin said that all aspects of the market energy system need to be reconsidered, 鈥渂eginning with the privatisation of monopoly assets, such as transmission and distribution鈥.

鈥淩eturning these assets to public ownership would allow for a return to a more integrated electricity supply industry.鈥

His view is that a public operator would continue to own the poles and wires but the mix of 鈥渂ase load鈥, 鈥減eak鈥 and 鈥渞eserve鈥 energy supply market 鈥渨ould be partially replaced by long-term power purchase agreements鈥, 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 鈥渞e-nationalisation is perfectly within the financial capacity of Australian governments鈥 because it is a 鈥渓ow-risk鈥 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: 鈥淭his 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 鈥 This isn鈥檛 a case of bad luck 鈥 this is聽a case of incompetence and calculated greed.鈥

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