AUSNET is preparing to submit a proposal to the Australian Energy Regulator for a second powerline to service the Euroa area, as a long-term fix for the region’s unreliable power supply.
The proposed $22 million investment, which would need to be approved by the AER, is outlined on AusNet’s website in a draft plan currently open for public feedback.
The plan proposing "a new express feeder in the Benalla area" is subject to change, with further work on the plan scheduled throughout 2025, to be submitted to the AER by December 2025.
If approved, the plan would go into effect from July 2026, according to AusNet’s current schedule.
The powerline servicing Euroa and surrounding towns, BN11, is the longest line in AusNet’s network and also the longest in Victoria, extending 1206km from Benalla to Euroa.
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Strathbogie Shire Council has been seeking a major upgrade to the notoriously unreliable powerline since at least 2022, listing it as one of the region’s most pressing needs in an “advocacy asks” document given to the State and Federal governments.
A separate council document submitted to the State Government in 2022 detailed council’s correspondence with AusNet regarding the issue.
“Council has been advised by the power supplier AusNet that a second supply line from Seymour to Euroa would form a ‘loop’ that would alleviate this issue and ensure that power would still be available in the event of failure of a single supply line,” the document reads.
“Previous discussions with AusNet indicated that it would cost approximately $20 million to provide this second supply line and that current rules prevent AusNet from investing in this infrastructure as they are prohibited from cross subsidising from other regions to build infrastructure.
“Furthermore, the cost per ratepayer should AusNet endeavour to cost recover would be prohibitive.
“AusNet has advised council that the only circumstances in which they would consider investment on its merits is if council identified a major power user such as a manufacturer that would commit to investing in the region if the power supply was improved, a scenario which is unrealistic at best.”
Asked by The Euroa Gazette to explain their turnaround, an AusNet spokesperson said: “Further analysis has shown this investment could be justified under the regulatory framework.”
“The [AER] will consider whether the costs of this investment are justified to be funded by all customers,” the spokesperson continued.
“Through our engagement with customers and the community they’ve told us that they are prepared to pay more for electricity reliability.”
However, the spokesperson said AusNet’s electricity prices in Victoria would remain about the same for households and only rise very marginally for businesses, because the increased expenditure would be offset by the growth of their customer base.
The plan proposes a total $122 million investment to improve regional power reliability in Victoria, with $22 million for the Euroa line, $37 million on AusNet's 10 worst-served feeders, and a $63 million "Regional Reliability Allowance... which is yet to be fully designed".
AusNet’s draft energy distribution pricing plan states: “Although in the minority, there are some customers who do not think network reliability investments should be socialised, and that customers in areas that are more expensive to service – being those that are more remote, regional, steep or densely vegetated – should be paying more for their power.”
On AusNet’s draft proposal for a second powerline, council's interim CEO Tim Tamlin said: “AusNet has heard the issues of our Strathbogie Shire residents and council’s continued advocacy.”
“Any assurance that power supply will be continuous post storms or unexpected events would be most welcomed,” he said.
Member for Euroa Annabelle Cleeland, who campaigned strongly for an improved power supply in the wake of the region’s major power outages in the summer of 2023-24, said she was proud of what we have achieved as a community.
“The relentless advocacy of our residents has ensured our towns are getting the attention and power reliability they deserve,” she said.
AusNet has faced increased pressure to fix the long unreliable power supply ever since the problem reached its peak last summer, having been exacerbated by the installation of two bushfire prevention devices, REFCLs, on the local network.
Ms Cleeland and Member for Indi Helen Haines had both called for fixes, Euroa Caravan Park owner Kristy Hourigan started a petition, hordes of angry locals sent complaints to AusNet, and the issue received statewide media coverage.
In January, AusNet spokeswoman Karen Winsbury told this masthead: “We are working hard to find a comprehensive and permanent long term solution and have a dedicated team of experts working full time on this matter.”
A second powerline has now been revealed as the proposed long-term solution, pending the finalisation of the pricing plan and the AER’s approval.
The recent news comes as AusNet announced the completed implementation of several medium-term solutions, which were announced earlier this year.
These measures included the removal of 164 hazard trees, targeted inspections across 1,400 spans of overhead lines, animal-proofing, and the installation of new technologies to assist crews to identify and isolate faults quicker, to reduce unplanned outage times.
In June, AusNet told this masthead the company had spent over $10 million on these measures.
