NECA: National Electricity Tribunal hands down penalties in relation to Monday 14 March 2005
NECA has completed an investigation into the blackout of large parts of South Australia on 14 March 2005, which occurred as a result of NRG Flinders’ failure to comply with National Electricity Code requirements for generator performance. As a result of those investigations, the National Electricity Tribunal has fined NRG Flinders $300,000 for breaches of the National Electricity Code.
This is the largest fine imposed by the National Electricity Tribunal since the commencement of the National Electricity Market in December 1998.
The Tribunal has ordered that NRG Flinders give to the AER an undertaking that it will institute a compliance program in accordance with clause 4.15(b) of the National Electricity Rules by 15 November 2005. From 1 July 2005, the AER assumed NECA’s responsibility for investigating alleged breaches of the National Electricity Law and National Electricity Rules and initiating proceedings for alleged breaches of civil penalty provisions.
The blackout occurred following a transmission fault on the Davenport 275 kV line at Playford sub-station at approximately 6:39am. Despite this fault being corrected in accordance with the National Electricity Code, both generating units at NRG Flinders' Northern Power Station failed to ride through the voltage fluctuation caused by this fault as required by its performance standard approved by NEMMCO, the National Electricity Market Operator.
The orders of the National Electricity Tribunal make clear the importance of generator performance standards to the maintenance of power system security. The AER, as part of its compliance monitoring programme, will be targeting generator performance standard compliance programmes to ensure these arrangements are effective.
The NECA press release and details of the National Electricity Tribunal decision are available to download.
