VNI West land battle fires up: Transmission Company Victoria to be sold

The Australian Energy Market Operator will sell its subsidiary TCV to another company, which will then build, own or operate VNI West. See the latest.

AEMO is not permitted to own a transmission company, so will sell its Transmission Company Victoria subsidiary to another player, who will then build VNI West.

The Australian Energy Market Operator has admitted it will sell its Transmission Company Victoria subsidiary to another entity, which will then build the VNI West interconnector.

But it appears the sale will not go ahead until TCV has surveyed the 500kV transmission line’s route and gained easements over 2800 landholders’ properties.

“Noting that AEMO in its role as Victorian planner is not permitted to own or operate transmission assets, AEMO will release a tender to the market for interested parties to continue the development and delivery of the VNI West project and to acquire TCV,” an AEMO spokeswoman said.

“It is AEMO’s intention that a new owner will acquire TCV and continue to develop the VNI West project and ultimately build, own and operate the transmission line.”

AEMO has not set a date on the sale, but has charged ahead with trying to gain Essential Services Commission approval for a TCV transmission licence.

Gaining a licence would grant TCV special section 86 and 93 powers under the Electricity Industry Act to access private properties along the route and compulsorily acquire easements.

However the Act also states these powers only apply to corporations that are either a “distribution company, a transmission company or a generation company”.

ESC guidelines also demand it assess the technical capability of licence applicant before issuing a licence.

Just how the ESC will assess TCV’s technical capability to build, own and operate a transmission line, prior to it being sold to another unknown company at some unspecified future date remains a mystery.

Regional Victoria Power Alliance spokeswoman Vicki Johnson said “surely TCV’s buyer should be applying for the licence”.

At this stage the ESC has stated it is “focused on ensuring that the TCV application form is complete, providing all the documents we require”.

Ms Johnson said “if the ESC ever accepts a complete application from TCV” then the alliance would lodge a submission opposing a licence being granted on the basis it would not be transmitting electricity.

In the meantime the ESC is in the midst of assessing an application from west Victorian electricity distributor Powercor for a transmission licence, which gives no detail on where or when it will build transmission lines.

ESC guidance on license applications states “applicants must be able to demonstrate that the activity for which the licence is being applied for is not merely speculative and there is a reasonable likelihood of that activity being undertaken”.

When asked how it could approve the Powercor application the ESC stated “the application met the requirements of the Electricity Industry Act 2000”, which “specifically contemplates granting a licence some years before the authorised activity commences”.