Investigation report - Red Energy's failure to test metering equipment

Sector: 
Segment: 
Category: 
Infringement notice
Release date: 
31 March 2014
Related provisions: 

Clause 7.2.5(d)(2) of the Electricity Rules.

Outcome: 

One infringement notice (AER01-2014) issued with infringement penalty of $20 000

Overview

The AER has published an investigation report regarding Red Energy’s failure to test metering equipment in accordance with the National Electricity Rules. The Electricity Rules stipulate that unless the responsible person has developed an asset management strategy that defines practices to meet the inspection and testing requirements of the Rules and is approved by AEMO, the maximum period between tests is ten years. The relevant rule is a civil penalty provision, meaning the AER may serve an infringement notice.

The AER issued an infringement notice to Red Energy in response to the conduct, which Red Energy paid on 21 March 2014. The infringement notice was issued in relation to one metering installation but the AER considers this failure to be an example of broader compliance issues that exist for Red Energy in relation to the relevant requirements.