August 2021 power outage leads to a big penalty imposed on Transpower after its actions were found remiss

By Eric Fryrkberg

Transpower has been fined $150,000 after power was cut off to about 34,000 homes in August 2021.

The power failure happened during extremely cold weather, with inadequate wind generation and a technical failure at the Tokaanu power station. 

This was the responsibility of Transpower.  As well as running the national grid, it is the so-called system operator, which means it is responsible for the practical day to day running of the electricity system.

In a subsequent hearing before an independent Rulings Panel, brought by the Electricity Authority, Transpower admitted two charges and two others were dropped. 

The Rulings Panel then ordered the authority to pay a fine of $150,000 after it admitted failings in respect of demand allocation, communication, and the issuance of a  formal announcement disclosing the shortfall in the electricity supply. 

Commenting on the Ruling Panel decision, the Electricity Authority said Transpower had conceded the tools it used to calculate and equitably allocate demand reduction during the grid emergency were not fit for purpose.

They were not regularly tested, they were not properly updated and they were operated by inadequately trained staff, the Authority said.

It noted there had been a series of improvements made in the wake of the 2021 incident.  

The Rulings Panel also ordered Transpower to pay the Authority’s costs in the amount of $6,207.50.