Electricity Authority Lodges Formal Complaint Against Transpower
The Electricity Authority Te Mana Hiko (the Authority) has lodged a formal complaint with the Rulings Panel alleging a breach of the Electricity Industry Participation Code 2010 by Transpower relating to the collapse of a Northland transmission tower last year.
The complaint alleges Transpower failed to adhere to good electricity industry practice in connection with the maintenance of an interconnection asset, namely the transmission tower at Glorit, Northland when it collapsed on 20 June 2024.
The compliance investigation and decision to lay a complaint are separate from the Authority's section 18 report into the event requested by the Minister for Energy that was released in September 2024.
The collapse of the tower cut power to 88,000 customers and had a significant economic impact on the region.
The Authority decided to lodge the complaint because the alleged breach was significant in its duration, severity and impact; it involved a critical asset and undermined security of supply; the Rulings Panel's assessment will help provide clarity on what good electricity industry practice requires of asset owners and the Authority aims to prevent similar incidents happening in the future.
The Rulings Panel is an independent body that determines breaches of the Code and may make appropriate remedial orders under section 54 of the Electricity Industry Act 2010.
If the Rulings Panel upholds a complaint, it has the power to make remedial orders against industry participants. Remedial orders include pecuniary penalties, compliance orders, compensation orders, and private and public warnings or reprimands.
Under the Electricity Industry (Enforcement) Regulations 2010, the total liability for a breach of clause 12.113 of the Code by Transpower for breaches under Part 12 of the Code (including both pecuniary penalties and compensation orders) is limited to $2 million.
Full details of the complaint are detailed in this notice: https://www.ea.govt.nz/documents/7453/R29_Notice_Rulings_Panel_referral.pdf
The alleged breach is of clause 12.113 of the Code - Transpower's failure to adhere to good electricity industry practice in connection with the maintenance of an interconnection asset.
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