Households to be slugged $34m to upgrade Murraylink power interconnector and will have to pay $1b if it is extended to NSW
HOUSEHOLDS and businesses could have to pay almost $34 million to upgrade the ageing Murraylink interconnector and will face a $1 billion bill if the electricity transmission link is extended to NSW.
HOUSEHOLDS and businesses could have to pay almost $34 million to upgrade the ageing Murraylink interconnector and will face a $1 billion bill if the electricity transmission link is extended to NSW.
The owners of the 220MW link between South Australia and Red Cliffs in Victoria plan to install a fire suppression system to prevent a “catastrophic long-term loss of service” if the interconnector is threatened by bushfires.
The Australian Energy Regulator has also been asked to allow the Murraylink Transmission Company to raise additional revenue from customers from 2018 to 2023.
The company told the regulator that it needed to refurbish or replace 20-year-old equipment.
It said more demand was being put on the state’s two interconnectors as thermal generators in SA closed and solar and wind farms were developed.
“This is leading to greater reliance on the existing interconnection, Heywood and Murraylink, to export power from and import power to South Australia,” a Murraylink submission said.
The energy regulator will accept public submissions on the revenue proposal until May 12.
SA Energy Minister Tom Koutsantonis said the State Government would wait for the regulator to assess the proposal before making a submission on behalf of consumers.
“Unfortunately when energy infrastructure is owned by private companies, we know from experience that they will act in the interests of their shareholders, not consumers, and will always seek to maximise their profits,” he said.
Murraylink also flagged that a duplication and extension of the interconnector would cost about $954 million.
Concept plans had been developed to duplicate the interconnector and bypass the Victorian transmission network by linking Berri to Buronga in NSW.
“Murraylink 2” would enable SA to export an additional 300MW of electricity to other states and to import power.
The direct link to NSW would allow SA to more easily import power when demand was high in Victoria.
Victoria’s coal-fired Hazelwood power plant, which will close next month, currently supplies 25 per cent of Victoria’s electricity supply.
Federal and state energy ministers yesterday discussed reforms to reduce electricity and gas bills through lower network costs.
The reforms include restrictions on the ability of power network companies to appeal against decisions on how much they can charge customers.
Successful appeals enabled companies to slug SA customers an additional $322 million between 2008 and 2012.
During a phone conference, ministers signed off on an Australia-first trial of a system that used wind farms to help stabilise the power grid.
SA’s Hornsdale 2 wind farm will be operated by the Australian Energy Market Operator to provide frequency-control ancillary services to help manage the national market.
Frequency control provides a fast injection or reduction of power to help manage supply and demand.