Western Australian Energy Dispute Determined in Court

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April 18, 2017
Northern Territory Fracking Inquiry Update
April 18, 2017

Western Australian Energy Dispute Determined in Court

Bluewaters Power 2 Pty Ltd v Australian Energy Market Operator Ltd [2017] WASC 98 (13 April 2017)

The Australia Energy Market Operator as the Whole Electricity Market Operator and system manager is required to ensure that the South West Interconnected System in Western Australia operates reliably. Bluewaters is an energy provider whose power station near Collie, WA has been out of service since January due to a trip requiring substantial repair before reconnection can occur. Under the Market Rules, Bluewaters is relieved of its obligation to generate power if the trip is a Planned Outage, but not if it is a Forced Outage. Bluewaters has submitted plans for AEMO review that, if accepted by the AEMO, would alleviate Bluewaters from paying a Capacity Cost Refund to the AEMO for its inability to supply electricity. AEMO contests they cannot consider the plans because they were submitted subsequent to the outage and therefore make Bluewaters liable to pay the Capacity Cost Refund. Justice Le Miere declared the AEMO to be correct in finding that the market rules did not oblige them to assess the plan put forward by Bluewaters. The application was therefore dismissed.

 

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