Strathbogie Shire blasts AER for short-sighted decision on power upgrades

Strathbogie Shire Council is bitterly disappointed at the AER’s decision to reject AusNet plans to improve power reliability in the region.

AusNet proposed the installation of a $38 million express feeder that would have provided essential power redundancy for the Benalla to Euroa BN11 powerline, which serves more than 5000 customers across the townships of Euroa, Violet Town and surrounding communities.

In a decision on Thursday, the Australian Energy Regulator (AER) rejected the plans and said it would only approve $5.7 million for the installation of covered conductors.

The BN11 feeder is the longest single-line feeder in AusNet’s Victorian network at more than 1200km. There is no redundancy or alternative supply paths and it’s vulnerable to faults as it runs through bushfire-prone areas and difficult terrain.

Strathbogie communities experience weekly power outages that are more frequent in the heat of summer and during storms. When the power goes out, it’s often out for hours or days as the entire feeder line needs to be physically inspected for faults before power can be restored. Electricity was lost for days during January’s Longwood Berrys Lane bushfire when access to power for crucial for firefighting and communications.

More than 1400 people signed a petition earlier this year calling on the AER to approve AusNet’s submission.

“Covered conductors won’t save the Strathbogie Shire businesses that are struggling to survive with fridges of spoilt food, power dependent customers or our farmers who need electricity to water their stock,”
Cr Jeffery said.

“Every power outage has a significant impact on households, business and industry, and poses an unacceptable risk to the community.

“This was the opportunity for the AER to acknowledge the importance of power reliability for our rural communities who have suffered for too long, and to take positive action to ensure we get access to the power we need to thrive and grow.

“Our Shire needs to attract business, industry and residents, but we can’t do that if our towns are constantly in the dark.”

It is the second time the AER has rejected AusNet’s plans based on a cost-benefit analysis. Late last year, Strathbogie Shire called on the AER to consider a more holistic framework as part of its determinations, including social resilience, emergency management and regional equity.

The AER determination said its decision ensured that “consumers are only asked to pay for AusNet’s forecast programs where they are demonstrably in the long-term interests of consumers”.

It will be five years before AusNet can apply again for the project to go ahead.

Reliable electricity is a key advocacy priority for the Shire, and Cr Jeffery said the AER’s decision was short-sighted.

“Council will continue to work with AusNet, key stakeholders, and State and Federal Members of Parliament to ensure energy security for the region.

“Reliable power should not be a luxury in modern Australia. This decision is nothing more than a band-aid on what is a festering sore for our communities. They deserve so much more.”