No. 4–Investigation into the derating of the Heywood interconnector in November–December 2007

On 23 December 2008, the Australian Energy Regulator (AER) issued an investigation report into the derating of the Heywood interconnector. The investigation resulted from high electricity spot market prices in South Australia over the March quarter this year.

The focus of this investigation has been to determine whether ElectraNet, the TNSP that owns and operates the transmission network in South Australia, has complied with relevant obligations under the National Electricity Rules (Rules). In particular, the investigation focuses on ElectraNet’s compliance with its network planning and reporting obligations.

While this particular investigation has not revealed any specific breaches of the Rules by ElectraNet, it has identified a number of information quality issues. Poor quality information can have significant ramifications for other market participants, who rely on operational and planning publications by network operators for the purposes of their operational and investment decisions.

A copy of the investigation report and ElectraNet’s undertaking are available to download.

Outcomes:

• ElectraNet has committed to improving longer term planning information in its Annual Planning Review, commencing in 2009.