Australia’s biggest transmission company has been slapped down by the regulator over attempts to pass on a billion-dollar bill to consumers for a bungled high-voltage power line.
The Australian Energy Regulator (AER) this morning rejected Transgrid’s bid to recover a huge cost blowout on its part of Project Energy Connect, a $3.6 billion transmission line linking South Australia with New South Wales.
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Craig Memery from the Justice and Equity Centre said the AER, in denying Transgrid, was drawing a line between legitimate claims and superficial ones.
In doing so, Mr Memery said the regulator was looking after consumers, who would have to pay for any approved extra spending through their bills for decades.
“At the end of the day, it is about whether companies pay for their mistakes,” Mr Memery said.
“It’s also about who carries what risk.
“We would argue that some of what has happened here is Transgrid has erroneously misjudged risk.”
