Australian Energy Regulator takes Callide Power Station trading arm to court over widespread blackout
Australia’s energy regulator is launching legal action against Callide C Power Station’s operators over a widespread blackout that impacted nearly 500,000 properties.
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A staggering failure to properly maintain Callide C Power Station led to a widespread blackout impacting nearly 500,000 Queensland households and businesses Australia’s energy regulator has alleged.
In a rare and significant intervention the Australian Energy Regulator is taking the trading arm of Callide C Power Station to federal court for allegedly breaching national electricity rules.
The AER has alleged, following a thorough investigation, the company failed to plan, design and ensure the plant was complying with performance standards designed to ensure the security of the nation’s electricity grid.
Grattan Institute energy program director Tony Wood said the move by the AER was a “reasonably big deal”, noting he couldn’t recall another company being taken to task for similar breaches of the national electricity rules.
Mining and Energy Union district vice president Shane Brunker, whose union has been critical of Callide Power Station’s leadership through state-owned CS Energy, said a full inquiry into the government-owned corporation was needed.
Callide C is Queensland’s fifth largest coal fired power station. It is run by state-owned CS Energy which owns half the station in a joint venture with Genuity.
In May 2021 an explosion at Unit C4 plunged 470,000 properties into darkness.
In November 2022 part of a cooling tower at Unit C3 collapsed. Both units remain offline, leaving Queensland without 840MW of generation capacity.
The AER alleged Unit C4’s protection systems did not have sufficient redundant power supply to disconnect the generating unit from the power system when the faults occurred.
Unit C4 also did not have a protection system to promptly disconnect it in the event of pole slipping — a situation when a generator is out of sync with other generators in the system ultimately leading to severe damage.
Callide Power Trading, in a statement, affirmed it would “work cooperatively with the Australian Energy Regulator to resolve this matter as soon as possible”.
Opposition energy spokeswoman Deb Frecklington said the “seriousness of the development cannot be overstated”.
“This is like the energy police charging the Queensland Government for it’s crimes at Callide power plant,” she said.
Energy Minister Mick de Brenni acknowledged the AER’s findings but would not comment on specifics as the matter was before the courts.
The move by the AER is the latest legal blow for Callide C, with the federal court in late January ordering a fresh investigation into the catastrophic failings.
Justice Roger Derrington, in a ruling in the case brought on by Genuity’s part owner Sev.en Gamma, said it was “not unreasonable inference” that CS Energy may have breached its contractual obligations or common law duties.
But he also stressed it was “far from certain” CS Energy bears “any responsibility for the damage to the units”.
CS Energy was contacted for comment.
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