The National Electricity Tribunal has fined Pelican Point Power Ltd $100,000 for a breach of the National Electricity Code on 14 March, 2005 but suspended payment of $80,000 in recognition of unusual events leading up to the breach and the company’s full co‑operation with the investigation. Details of the Tribunal’s decision are available to download.

Pelican Point Power Ltd, which is owned by International Power (Australia) Pty Ltd, operates the Pelican Point Power Station at Outer Harbor, South Australia.

NECA’s investigation of this event and the National Electricity Tribunal’s final determination of the matter took a total of 5 months from the date of the event. As Pelican Point Power Ltd chose not to contest the application, the National Electricity Tribunal accepted joint submissions of NECA and Pelican Point Power Ltd.

South Australia experienced a severe power system disturbance on 14 March 2005, which led to large parts of the state being blacked out. The disturbance included the failure of the Northern Power Station to ride through a voltage fluctuation and the consequent opening of the circuit breakers on the Victoria – South Australia (Heywood) Interconnector (in accordance with design specifications), which led to the “ islanding” of South Australia from the rest of the national market. The National Electricity Tribunal recently issued a judgment in respect of the operation of the Northern Power Station on the day and the power station’s contribution to the blackout.

While the Pelican Point Power Station did not materially contribute to the blackout, the version of the control software available at the plant following this event failed to ride through the frequency disturbance, a matter that could not be identified during commissioning of the plant but has now been addressed in consultation with the manufacturer.

Accordingly, the National Electricity Tribunal has found that Pelican Point Power Ltd breached its performance standards, as alleged by NECA, and has imposed the maximum penalty of $100,000.

Due to a number of factors including Pelican Point Power Ltd’s full co-operation with the NECA investigation, the unusual events leading up to the breach, the fact that Pelican Point could not have reasonably prevented the trip and the consequences of the breach, the National Electricity Tribunal has suspended payment of $80,000 for 12 months.

Should, however, the Pelican Point Power Station breach this performance standard again within 12 months, the suspended payment will automatically be due and payable in addition to future penalties for that breach.

Following the incident of 14 March 2005, Pelican Point Power Ltd. took immediate steps with the original equipment manufacturer to improve the response of the Pelican Point Power Station to changes in frequency such as those that the generating unit faced on 14 March, 2005. Pelican Point Power Ltd. subsequently made modifications on 25 April, 2005 to achieve this.

National Electricity Tribunal decision and orders 9 September 2005

Amended Agreed statement of facts and positions 7 September 2005

NEMMCO letter received by NECA 1 September 2005

Tribunal letter 24 August 2005

NECA application 12 August 2005