Babcock and Brown Power - Failure to follow dispatch instructions - 11 February 2009

Sector: 
Segment: 
Category: 
Infringement notice
Release date: 
10 December 2009
Related provisions: 

Clause 4.9.8 (a) of the National Electricity Rules.

Event date: 
11 February 2009
Outcome: 

Two infringement notices issues with infringement penalties of $40 000.

The AER also received undertakings from Babcock & Brown Power.

Overview

The AER has published an investigation report into the compliance of Babcock and Brown Power (BBP) with two provisions of the National Electricity Rules, relating to the operation of two of its power stations—Playford in South Australia and Braemar in Queensland. The report details the events of 11 February 2009, when Playford Power Station allegedly failed to follow dispatch targets issued by the Australian Energy Market Operator (AEMO). In addition to this, the AER alleged that on this day, BBP also failed to notify AEMO of an event that was likely to change the operational availability of Playford.

The report also covers the events of 17 March 2009, when Braemar power station began producing electricity without first receiving a dispatch target from AEMO.

This completes the AER’s investigation into these events and follows a decision of the AER in September 2009, to issue two infringement notices totalling $40,000. The penalties relate to the alleged failure of Playford and Braemar power stations to follow dispatch instructions issued by AEMO. While an infringement notice was not issued in respect of BBP failing to notify AEMO of a change in Playford’s operational availability, the AER obtained a commitment from BBP regarding the improvements it will make to its compliance systems in this area.