Energy watchdog slaps down billion-dollar bailout for transmission line
Australia's biggest transmission company's bid to pass a billion-dollar bill on to consumers for a bungled high-voltage power line has been slapped down by the regulator.
The Australian Energy Regulator (AER) has denied a billion-dollar bailout request from Australia's largest transmission company, Transgrid, for a troubled high-voltage power line project called Project Energy Connect. The AER rejected Transgrid's claims that the cost overruns were unforeseeable, stating that failing to complete the project would not jeopardize the grid's reliability or security.
Consumer advocates have welcomed the regulator's decision, emphasizing that it sets an important precedent for holding companies accountable for their mistakes and not shifting risks to consumers through higher bills. The project, which was expected to cost $2.3 billion, now exceeds $3 billion due to various setbacks, including flooding, COVID-19, and extreme inflation.
Transgrid had hoped to reopen its deal with the regulator to recover the extra costs, but the AER provisionally dismissed the request, leaving the door open for the company to apply in its next revenue deal from 2028.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
