POWER June 2013 - 50

POWER AUSTRALIA
Global Business Reports
www.gbreports.com
PowerSense's DISCOS® overhead combined
(current and voltage) sensors for medium
voltage. Photo courtesy of PowerSense.
sees the retail market, overestimated
peak demand in every Australian state and
was forced to revise its projections. These
original estimates caused utilities to funnel
capital expenditures into the upgrading of
the electricity networks, which led
to higher prices as they seek to recoup
their investments.
TransGrid,
the
state-owned transmission
company in New South Wales, implemented
a number of projects designed to
upgrade the network capability, despite ongoing
political debate about so-called " gold
plating, " where continued investment into
networks has been questioned as excessive.
" Gold plating is a term that has unfortunately
taken off in the political domain for
the purpose of media attention, " said Peter
McIntyre, TransGrid's managing director. " As
one of the Southern Hemisphere's biggest
economic hubs, Sydney needs a reliable
network. Transmission failures, while considerably
rare, can have catastrophic consequences.
When systems deteriorate to
the point of failing consistently, the time to
recover can be measured in years. Our job is
to meet customer's reliability expectations
at minimal capital expense. TransGrid aims
to spend its available funds wisely and prudently
by identifying the latest possible point
we can invest in augmenting the network.
Our Board has deferred almost A$1 billion
of projects in the last 12 months. However,
much of our grid was built in the 1960s and
1970s, and networks on average have about
50-year lifespans. It is appropriate that we
have an ongoing program to replace it. "
In 2013, the company instituted a price
freeze for the year, in response to the rising
Peter Jackson,
Managing
Director,
Eraring
Energy
electricity costs. " TransGrid is sensitive to
the debate around rising power prices and
wants to be part of the solution. We are very
conscious that our revenues fluctuate, although
for good reasons. As you build more
capital, greater funds are required; and the
cost of capital also varies. However, these
fluctuations are not good news for end users,
who receive them as power prices.
These prices have risen in recent years
due to a combination of factors: networks'
liability standards, ageing infrastructure, ris2
Global
Business Reports // POWER AUSTRALIA
June 2013

http://www.gbreports.com

POWER June 2013

Table of Contents for the Digital Edition of POWER June 2013

Contents
POWER June 2013 - Cover1
POWER June 2013 - Cover2
POWER June 2013 - Contents
POWER June 2013 - 2
POWER June 2013 - 3
POWER June 2013 - 4
POWER June 2013 - 5
POWER June 2013 - 6
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POWER June 2013 - Cover3
POWER June 2013 - Cover4
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