“This was less problematic when these events occurred once every 10 or 20 years, but they are now happening much more frequently.”
The government review also found there was no incentive for distributors to invest in poorly performing parts of the network.
“The increasing severity and frequency of severe storm events of recent years is not something the ‘steady state’ regulatory framework that provides incremental and progressive efficiencies and improvement was designed to address. Faster and more targeted change is required,” it said.
Electricity distributor AusNet’s communications to customers were found to be “overly optimistic”, offering “authoritative customer restoration times at a time when the extent of network damage and repair was not known”.
“The information provided to customers changed multiple times as new information became available, undermining customer and the community’s confidence and ability to make good decisions about how best to manage their circumstances,” the report said.
AusNet executive general manager of network operations Andrew Linnie said it had already introduced changes to benefit communities that would be affected by future weather changes and was committed to further improvements.
“In the longer term, we’ll work with local governments and the community to help them become more energy resilient, so they are better prepared to withstand future weather events,” he said.
AusNet has bought four mobile assistance vehicles to provide charging facilities and internet to areas that lose power. Another independent review commissioned by the company into its response, undertaken by the consultancy firm NOUS Group, has also been completed.
“We are also continuing to consult with customers and other stakeholders on our longer-term plans to strike a balance between reducing the impact of extreme events and energy costs,” Linnie said.
By the end of March, the Energy and Water Ombudsman of Victoria had received at least 253 complaints related to the storms – a 445 per cent increase in unplanned-outage complaints compared with the same period last year.
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The main reasons for complaints were issues with accessing compensation and communication during the storms.
“It’s clear that improvements must be made in the way privately owned power companies respond to extreme weather events and how they communicate with the residents and businesses who rely on them,” Energy Minster Lily D’Ambrosio said.
Network Outage Review chair Rosemary Sinclair said it had heard from the communities hit worst during the February storms as part of the process. “There are lessons for all distribution businesses from these experiences to improve outcomes for Victorians in the future,” she said.