On 17 December 2025, the AER instituted proceedings in the Federal Court alleging that NSW Electricity Networks Operations Pty Limited (Transgrid) breached the National Electricity Rules.
The AER alleges that Transgrid breached the National Electricity Rules by failing to:
- arrange for management, maintenance and operation of its network to minimise the number of interruptions by using good electricity industry practice between 22 June 2022 and 28 October 2024 (Clause 5.2.3(e1)(3))
- arrange for power to be restored as soon as possible between 17 October 2024 and 28 October 2024 (Clause 5.2.3(e1)(4))
- ensure its system complied with its NSW transmission operator’s licence between 1 July 2024 and 30 June 2025 (Clause 5.2.3(f)).
The AER also alleges that Transgrid failed to institute and maintain a compliance program for the generators in the period between 13 November 2022 and 27 October 2025 (Rule 4.15(b)).
The AER is seeking pecuniary penalties, declarations and costs.
Background
A severe weather event in the Broken Hill area on 16 October 2024 led to the failure of the transmission line that supplies Broken Hill, requiring Transgrid’s two back-up generators to provide power.
At the time, one generator was unavailable due to maintenance and the other experienced multiple outages, resulting in 12,700 properties in Broken Hill and surrounding areas being left without power intermittently until 31 October 2024.