Former CS Energy CEO Andrew Bills grilled over Callide Power Station’s C4 explosion

The former Callide power station boss has sensationally conceded he and Energy Minister Mick de Brenni did not discuss whether maintenance issues or budget cuts may have contributed to its explosion.

When inspecting the aftermath of an explosion that cut power to almost half a million homes and businesses, the Energy Minister and Callide power station boss did not discuss whether maintenance issues or budget cuts may have contributed, they looked at “how far bits and pieces had gone” in the blast, the Federal Court heard.

Former CS Energy CEO Andrew Bills said that he and Mick de Brenni then went to the nearby bowls club in Biloela, about 150km south of Rockhampton, where they met with affected Callide workers, and held a media conference.

Two catastrophic incidents occurred at Callide – the C4 explosion in May 2021, followed by the cooling tower collapse in the C3 unit in October 2022. It is Queensland’s fifth largest coal-fired power station and is managed by state-owned company CS Energy.

For more than six months, the Federal Court case instigated by FTI Consulting – the appointed administrators of IG Power, CS Energy’s joint-venture partner for the Callide Power Station – has been investigating the cause of the incidents.

On Friday, Mr Bills – who was CS Energy CEO for four years before quitting in February 2023 to become CEO of South Australia’s electricity distributor, SA Power Networks – was grilled by barrister Nicholas Hopkins, representing FTI Consulting, about how much he knew.

CS Energy boss Andrew Bills leaves the Brisbane Federal Court. Picture: NewsWire/Tertius Pickard

Mr Hopkins asked Mr Bills whether he was aware of reports completed in 2014 and 2015 that found the C3 cooling tower was “at its structural limit”.

“No, I had not seen those reports,” Mr Bills replied.

When asked about the first incident in May 2021, Mr Bills said he arrived around 11.30pm on the day of the explosion, but could not access the site until 6am the next day.

Mr de Brenni arrived three days after the C4 explosion for a site tour.

“We showed him the incident, the extent of it so he could see the damage and how far bits and pieces of the plant had actually gone,” Mr Bills told the court on Friday.

“We then went to the bowls club in Biloela … we met with a range of workers there and we held a joint press conference.”

Mr Hopkins inquired whether Mr de Brenni asked Mr Bills at any point whether maintenance was an issue and whether it could have played any role in the explosion.

“I don’t remember talking to him that afternoon about maintenance,” Mr Bills testified.

Mr Hopkins pressed further, asking whether at any time during the Minister’s visit, Mr Bills discussed funding for maintenance work, which had been cut prior to the incident.

“No,” Mr Bills replied.

In a separate exchange, Mr Hopkins inquired whether Mr Bills had ever had a conversation with the Energy Minister regarding process safety and the critical risk programs.

Queensland Energy Minister Mick de Brenni outside the Federal Court in Brisbane earlier this month. Picture: Dan Peled

“I don’t recall having a conversation with Mick de Brenni about process safety and the critical risk program,” Mr Bills answered.

“What about the Energy Minister before him?” Mr Hopkins pressed.

“I don’t recall having a conversation with Anthony Lynham, no,” Mr Bills responded.

Mr Bills said that updates on process safety and critical risk programs were included in quarterly reports. Mr Hopkins jumped in at this point, saying his understanding was CS Energy bosses and the Energy Minister tried to meet quarterly to discuss the reports.

“Yes, but those agendas often changed and we wouldn’t necessarily get to that,” Mr Bills conceded.

Prior to the two incidents, Callide’s two process safety managers resigned in early 2019.

In her exit interview, the senior process safety manager raised concerns about “telltale signs of a potential process safety incident” which included “a lack of maintenance, four fires in five months, and the pushing out of safety overhaul schedules”.

“In general, I do remember these issues being raised with me,” Mr Bills told the court.

When asked what his response was to the concerns, Mr Bills said he raised them with Colin Duck – who was responsible for Callide’s budgeting and deciding which process safety projects were prioritised.

“He [Mr Duck] gave me guidance on the issues that had been picked up, said some were timing issues and there was work to be done, but we were on that path … he said it was part of the program and we would get there over time,” Mr Bills said.

Callide Power Station following the explosion. Picture: Steve Vit

Mr Bills disagreed with the findings in the scathing Brady Heywood report into the C3 and C4 incidents, which found no progress was made on process safety from April 2019 to July 2020 – the period following the two process safety managers’ resignations.

“It is inconsistent and I don’t agree with it … [the contractor] was on board and undertaking process safety workshops, undertaking bow tie safety analysis, reporting on process safety incidents, process safety training was being rolled out,” he said.

Mr de Brenni testified earlier this month that he was unaware of the prior safety warnings, as well as the associated backlog in safety inspections and maintenance work at the power station, until the Brady Report was released earlier this year.

The case was adjourned on Friday, but is due to resume on November 7.

Originally published as Former CS Energy CEO Andrew Bills grilled over Callide Power Station’s C4 explosion