Mervyn Davies' Report FAQs

What is the state of the Territory’s power system?

Power and Water delivers essential services across one of the toughest natural environments anywhere in the world. This dramatically accelerates ageing and deterioration of electricity generation and network assets.

We are investing heavily in these assets to make sure that they are safe, efficient and perform to the highest standard possible.

What caused the Casuarina Zone Substation outages?

On 19 September a high voltage circuit breaker failed at Casuarina Zone Substation. Due to the severity and type of fault the total load on the substation automatically disconnected. It took longer than usual for Power and Water staff to restore power that day, as smoke detectors set off the fire protection in the switch room, and access was not possible until the Fire Service determined it was safe.

The two subsequent extended outages occurred due to failures of cable connectors inside the switchboard at Casuarina Zone Substation.

After working cooperatively with Mervyn Davies in the lead up to his report, what are the key areas Power and Water will concentrate on in response to his recommendations?

We are completing a comprehensive Remedial Asset Maintenance Program at the Casuarina Zone Substation and all other zone substations and switching stations. We are undertaking condition monitoring and overhauling equipment as necessary.

We are identifying where additional training is needed and hiring people with the qualifications needed to up skill our employees. This includes bringing in technicians and professionals from other utilities to help us fast-track our own development, drawing on their skills and knowledge to complement our skills and capabilities.

We are improving reporting procedures to ensure greater accountability for maintenance work to the Power and Water Board.

We aim to comprehensively complete all immediate recommendations of Mervyn Davies’ Report as soon as possible.

Can you guarantee that something like the Casuarina incident won’t happen again?

We are taking an orderly, sensible approach to determining what elements of the electrical network are at risk and fixing them in a comprehensive way. Mervyn Davies makes it clear that a rigorous approach to monitoring assets will mean further failures like that experienced at Casuarina are unlikely. We know what caused the incidents and Mervyn Davies has pinpointed some areas where we need to improve and many of his recommendations have already been put into action.

How long will it take to implement the recommendations from the Mervyn Davies’ Report?

There is a specific, lengthy and thorough process that must be followed to assess and test each piece of equipment in the electricity network. This work is specialised and can be dangerous. Power and Water will take the time to use the correct resources and do the job right.

We aim to comprehensively complete all immediate recommendations of Mervyn Davies’ Report as soon as possible.

What progress has been made at Casuarina?

A temporary 11kV Switchboard has been installed and commissioned. 66/11kV Transformer 1 has been returned to service and four 11kV Feeders have been re-routed from the old switchboard to the new temporary board. Essentially Casuarina Substation was returned to full capacity in late January.

When will the generators no longer be needed?

After the temporary switchboard has been proven in service for a month the generators can be removed from service. This is expected by the end of February 2009.

Why is it taking so long for the new switchboard to arrive in Darwin?

The normal delivery period for this type of high voltage equipment is around six months. The switchboard is being built and the supplier is on target to meet a March 2009 deadline. 

Why aren’t spares available for each substation?

Keeping multiple spares for every substation is not feasible. When out of operation, spares deteriorate quickly. However, we are reviewing all spare holdings and ensuring that their condition is always above minimum acceptable standard and specification.

Will any Power and Water staff lose their jobs?

No. Mervyn Davies has recommended some fine tuning to the restructuring of the Networks business which is underway, including the employment of an additional six frontline maintenance personnel on top of the nine already approved as part of the restructure. The Networks restructure will result in changes in personnel at certain levels but it does not mean job cuts.  

How much is this going to cost?

We are analysing Mervyn Davies’ recommendations to determine what investment is required where. The exact figures are yet to be determined. Mervyn Davies’ recommendations accord with the change already underway. What we are doing is accelerating that change so his immediate recommendations are completed as soon as possible. Power and Water has a capital works and repairs and maintenance budget that exceeds $1 billion over the next five years.

Will power bills rise as a consequence?

Tariffs are a matter for Government. Power and Water will bear the costs of the remedial work to Casuarina Zone Substation.

Under what conditions were customers paid a rebate for the Casuarina outages?

Rebate conditions:

•  $80 if the total duration of unplanned interruptions associated with the Casuarina zone outages in September and October 2008 was at least 12 hours in duration; and
•  $125 if the total duration of unplanned interruptions associated with the Casuarina zone outages in September and October 2008 exceeded 20 hours.

Overall payments will exceed the amount recommended by the Utilities Commission. Eligible customers will receive this rebate off their next bill. The three month billing cycle started in the last week of January. Queries can be directed to our Customer Service Centre on 1800 245 092.