Power upgrades: 92 of Victoria’s regional firms hit with $80m bill

AT least 92 of Victoria’s largest regional employers — from dairy processors to grain millers — are being forced to divert $80 million from growing jobs into upgrading their connections to the state’s electricity grid.

Fire line: New unproven fault limiting technology to stop powerline fires will cost regional Victorian industry $80m.

AT least 92 of Victoria’s biggest regional employers — from dairy processors to grain millers — are being forced to divert $80 million from growing jobs into upgrading their connections to the state’s electricity grid.

Energy Minister Lily D’Ambrosio has foisted the cost on to regional Victoria’s biggest electricity consumers, under a scheme to mitigate powerlines sparking bushfires.

Ms D’Ambrosio has demanded AusNet and Powercor install rapid earth current fault limiters at more than 40 substations across Victoria, despite the European technology having never been used to mitigate bushfires.

The move has left 92 of regional Victoria’s high-voltage users of electricity exposed to the risk of power surges if the fault limiters are triggered, which they must now offset by installing isolation transformers at a cost of $850,000 each.

Companies affected include Saputo’s Stanhope plant, Bega’s Tatura plant, Selkirk Bricks, Benalla munitions manufacturer Thales, McCain Foods, Midway timber processing group, regional miners, engineering firms, Geelong’s wind turbine assembly plant, hospitals and water corporations.

Boundary Bend Limited has discovered it will have to divert funds from other parts of its operation to install three isolation transformers, given a REFCL is due to be installed at the Charlton substation.

“They (government) forced this on us, only five years on from installing new electric pumps and transformers,” Boundary Bend executive chairman Rob McGavin said.

UniGrain co-chief executive Andrew May said the family-owned business faced having to pay about $1 million to install an isolation transformer.

“We are very concerned at the impact of the REFCL program on our business and its influence on employment and the growth on a regional area like Ballarat,” Mr May said.

Australian Industry Group Victorian head Tim Piper said 40 members were looking at finding a combined $35 million to protect their electricity assets.

Mr Piper said the Government had set aside $10 million in support, capped at $250,000 per business, which had quickly run dry.

He said the Government had grossly underestimated the cost of protecting high-voltage customers.

Ms D’Ambrosio said the Government would continue to work with high voltage customers about the support Government could provide throughout the transition to the new technology.