Amidst the severe storms that battered Victoria on February 13, 2024, AusNet Services, the electricity distributor responsible for the affected regions, found itself in the spotlight due to widespread power outages and challenges in its outage tracking system.
AusNet’s Troubled Response
The storms left AusNet scrambling to restore power to approximately 530,000 homes and businesses. However, the company’s online outage tracker, a crucial tool for customers seeking updates, crashed due to overwhelming traffic and remained inaccessible for a week. This lack of real-time information left customers in the dark, frustrated, and anxious about the restoration process.
Investigation and Findings
The Essential Services Commissioner (ESC) launched an investigation into AusNet’s response. The findings highlighted that the company breached Victorian energy laws by failing to provide adequate information to customers during the outage. AusNet acknowledged its shortcomings in delivering timely and accurate updates.
Consequences and Court Enforceable Undertaking
As a result of the investigation’s findings, AusNet entered into a court enforceable undertaking (EU) with the ESC. The EU outlined specific measures the company must undertake to address its identified failures and enhance its preparedness for future extreme weather events.
Customer Compensation and Remedial Measures
AusNet is required to pay $12 million in customer compensation, to be distributed through charities and Financial Counsellors Australia by the end of 2026. This compensation aims to support affected consumers who endured inconvenience and financial hardship during the power outages.
In addition, AusNet must implement various energy resilience measures, such as grants to councils and community groups for charging and communication services during outages, and local power generation to keep businesses operational during blackouts.
System Upgrades and Accountability
The EU also mandates AusNet to improve its systems to prevent similar failures in the future. The company must issue a formal apology to customers and engage independent consultant reviews to assess its systems and report progress to the ESC.
The total financial commitment under the EU amounts to $12 million, representing an additional $2 million on top of AusNet’s previously announced Energy Resilience Community Fund.
Next Steps and Timeline
AusNet has until the end of 2026 to distribute the customer compensation and implement the required energy resilience measures. The ESC will monitor the company’s progress and hold it accountable for meeting its obligations.
The aftermath of the severe storms and AusNet’s response have highlighted the importance of reliable infrastructure, timely communication, and customer support during extreme weather events. The measures outlined in the court enforceable undertaking aim to address these shortcomings, improve AusNet’s responsiveness, and strengthen the resilience of Victoria’s energy network.
Priyanka