PIAC lodged a submission to TransGrid on its consultation regarding the Broken Hill secondary systems replacement project.
TransGrid’s preferred option will bring forward some other asset replacement scheduled to be completed by 2024/25. Bringing forward works in the same location provides economies of scale and scope, however it also introduces risk consumers will pay now for investment that is either not needed for several more years or not needed at all.
TransGrid has not made clear how bringing forward the primary system works is in the interests of consumers. To address this, TransGrid should demonstrate: that the efficiencies from bringing forward the works are, on balance, worth any increased cost and/or risk consumers will incur; and that the preferred option is the most efficient and prudent way to achieve these efficiencies.
Without this substantiation, PIAC is concerned the preferred option could represent an excessive increase in transmission costs to consumers when lower-cost options are available.
