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Power struggle: Pole repairs take backseat as energy giants chase green profits

NSW’s biggest energy distributors are under fire for diverting workers from vital pole and wire repairs to cash in on EV chargers and wind farms.

Exclusive: NSW energy network distributors have been accused of prioritising the installation of electric vehicle charging stations and repairing wind farms over crucial maintenance of the state’s poles and wires.

The three biggest energy distributors in NSW – Endeavour, Essential and Ausgrid – have been accused of seconding workers who are meant to focus on keeping the lights on for the public, to compete with electrical contractors for work in the green energy space, despite a massive backlog of poles and wires repairs needing attention.

Figures logged with the NSW Independent Pricing and Regulatory Tribunal (IPART) for 2023-24 show Ausgrid had 16,205 outstanding corrective tasks or fixes required across its network, while Essential had 14,970 and Endeavour 2699.

NSW’s biggest energy distributors are under fire for pulling workers off critical pole and wire repairs to chase profits from EV chargers and wind farms.
NSW’s biggest energy distributors are under fire for pulling workers off critical pole and wire repairs to chase profits from EV chargers and wind farms.

Technicians working on those fixes are meant to be ring-fenced from the distributors’ commercial operations which compete with electrical contractors for work such as installing electric vehicle (EV) charging stations or maintaining wind turbines.

However, by finding wriggle room in the ring-fencing rules, Endeavour has shared 89 staff with Ausconnex, which maintains wind turbines at Lake George, 40km northeast of Canberra, in the last financial quarter. Essential has also shared 11 staff and eight executives with its green energy subsidiary, ­Intium.

Ausgrid provides no staffing numbers but confirmed key staff had been seconded to work on EV charging stations. Its commercial subsidiary PLUS ES recently won a NSW government contract to install EV chargers on Ausgrid poles.

National Electrical and Communications Association chief executive Oliver Judd said the major electricity distributors should “remain focused on maintaining their core assets”, rather than chasing profits in other markets.

Liberal MP Ray Williams says the electricity companies need to “stay in their lane” and ensure they keep the lights on. Picture: AAP Image/Paul Miller
Liberal MP Ray Williams says the electricity companies need to “stay in their lane” and ensure they keep the lights on. Picture: AAP Image/Paul Miller

“When thousands of jobs are not completed on time across the poles and wires that ensure a safe and reliable electricity network, it is bizarre that the networks are asking to take on more work in new markets,” Mr Judd said. “It could be a risk to public safety.”

A Department of Energy and Climate Change spokesman said major energy distributors had obligations to “ensure the reliable operation and timely repair of their electricity networks” and were legally bound to ring-fence regulated and commercial ­operations.

In a statement, the Australian Energy Regulator (AER) confirmed it would consider a review of those staff ring-fencing guidelines this year.

Ausgrid’s commercial subsidiary PLUS ES has recently won a NSW Government contract under competitive tender to install EV chargers on Ausgrid poles. Picture: Getty Images
Ausgrid’s commercial subsidiary PLUS ES has recently won a NSW Government contract under competitive tender to install EV chargers on Ausgrid poles. Picture: Getty Images

NSW Liberal MP Ray Williams, who sits on the Legislative Infrastructure Committee, said big electricity companies needed to “stay in their lane” to ensure they keep the lights on.

“They are trying to muscle into other areas like EV charging stations,” he said. “Safety always has to be a priority (and) my concern is there could be safety implications to this.”

Sources said faults going unchecked could include poles that could lead to fallen cables and live wires on the ground.An Ausgrid spokesman said PLUS ES had its own dedicated staff who stepped in to help during emergencies.

“The 16,000 ongoing jobs represent scheduled work on 0.3 per cent of our five million assets, which is typical of how networks are maintained. Urgent safety jobs are dealt with within 24 hours,” he said.

Endeavour said staff shared with Intium were listed on a public register and complied with ring-fencing guidelines.

“Endeavour Energy prioritises essential network maintenance and repairs and does not reassign staff from these responsibilities to support non-regulated business activities,” the spokesman said.

A spokesman for Essential said core network works “including the repairs and maintenance of poles and wires” were prioritised in accordance with regulator guidelines.

Originally published as Power struggle: Pole repairs take backseat as energy giants chase green profits

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Original URL: https://www.thechronicle.com.au/news/nsw/power-struggle-pole-repairs-take-backseat-as-energy-giants-chase-green-profits/news-story/148f8738108374db8bb4dea1f21af33e