Power cut exposes lack of planning

Published: 7:51PM Monday June 12, 2006 Source: One News

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Energy experts say the power crisis has exposed a lack of planning and investment in vital electricity infrastructure.
           
Power is back in most parts of Auckland after the region was hit by a major blackout on Monday causing widespread disruption.

High winds caused equipment failure at Transpower's Otahuhu substation to fail at about 8.30am on Monday.

Business leaders want answers from Transpower about how the system could fail at a cost of tens of millions of dollars.

"You just can't do business. Any manufacturing plant is closed down. Now in terms of turnover it will run into tens of millions.  I don't know, it will be absolutely huge," chief executive of the Northern Employers and Manufacturers Association, Alasdair Thompson, says.

Before power was beginning to be restored, the finger pointing had started over who is to blame - ranging from Transpower to the government and delays caused by the Resource Management Act.

"The government and the RMA have made it almost impossible to up rate the existing lines which could have solved the problem quite easily," energy consultant Brian Leyland says.

And while candles weren't needed this time, Monday's power cut brought back painful memories of central Auckland's big blackout eight years ago in 1998.

"Here we are worrying about broadband and unbundling and we can't even get the electricity supply right, you know - we're just messing up again," Alex Swney of Heart of Auckland City says.

In March, the head of Meridian Energy was accused of being alarmist when he warned of possible blackouts during the 2011 Rugby World Cup.

"We want an All Black win, not a bloody blackout," CEO Keith Turner said.

But Turner says the blackout has exposed a fragile system.

"It's quite old, and we are in need of a significant upgrading and overlay of new capacity into our grid, and these are the sort of events that you will get with an old system fully loaded."

Now Prime Minister Helen Clark wants answers.

"Why is so much of Auckland dependent on one power line?  And that's a question the public is entitled to have answers to, and it's a question the government would like some answers to," she says.

Thompson has called for a full report into what happened and why, and what action was taken to resolve it, as well as what's needed to reinforce security of supply in Auckland.

Energy experts say state owned generators made an extra $180 million for the government earlier this year when power prices rose, but the grid has been neglected.

And unless something is done soon, investors will go elsewhere they say.

"People are just not contemplating expanding their business because of insecurity of power supply.  The hidden cost is high - nobody wants to know about it," Leyland says.

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