Powercor regulatory reset 2026-2031

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Better reliability – stronger network

Powercor, 11 October 2024

On the back of last week’s storms, Powercor has announced a plan to strengthen the power network against more frequent and extreme weather events.

This includes:

  • Microgrids being planned for four rural communities, Donald, Lancefield, Apollo Bay and Ballan. This involves placing permanent generators to act as alternate energy supplies within the boundaries of these townships. These will be used if there are faults impacting power to these town. They will provide customers an alternative power supply until crews repair the network and restore power following extreme weather events.
  • Reliability improvements, including plans to “tie” powerlines from different areas together, allowing power to be fed to these areas from more than one source. This will mean better reliability in places like Trentham, Blackwood, Peterborough, Dereel, Rokewood, Glenlyon and surrounds.
  • The roll out of fire-resistant poles in high-risk fire areas. Pole replacements following a bushfire are one of the most time-consuming tasks for repair crews, so not having to change poles in a fire impacted area would improve power restoration times as well as reduce the risk of power outages. And in flood prone areas, power poles will be raised higher to further reduce the chance of flooding impacting the power network.
  • A range of rural and regional supply upgrades, creating extra capacity on powerlines to help businesses grow and to help households take better advantage of technologies like EV charging and rooftop solar exports.
  • In a boost to safety, a new Rapid Earth Fault Current Limiter (REFCL) bushfire safety device will be installed at the Horsham Zone Substation. The new REFCL will protect powerlines stretching from Balmoral to Hopetoun, and from the South Australian border to Rupanyup, responding to faults on the network and reducing the chance of a fire starting. This will be the first REFCL installed in Victoria since the end of the Victorian Government mandated REFCLs in response to the Victorian Bushfires Royal Commission.
  • A major boost to vegetation management is also planned, with plans to clear even more tree and branches away from lines to create a reliable and safe power network. Powercor already clears more than 500,000 trees and branches away from lines every year.
  • We also have plans for new depots at Portland, Hamilton and Swan Hill, which will provide better bases of operations for crews servicing these areas and support us to continue providing responsive service to the communities we operate in.

More EV charging and paving the way for cleaner energy

Our plans also include significant investment in enabling more EV charging, enabling greater rooftop solar penetration, and smart tools to meet significant growth in energy demand from electrification and a fast growing population.

Parts of our network are expected to become “winter peaking” by 2031, as a result of increased electrification.

The draft plan allows for:

  • a range of rural and regional supply upgrades, creating extra capacity on powerlines to help customers in regional locations take better advantage of technologies like EV charging and rooftop solar exports.
  • We will deliver flexible solar exports, increasing the current 5kW solar export limit for customers and maximising the value of their rooftop solar systems.
  • There will be new pricing structures that will make it cheap to use power in the middle the day, helping customers soak up as much low-cost rooftop solar power as possible.
  • We will also provide more access to customer and network data than ever before, allowing greater understanding and participation in the energy transition.
  • We will also use smart tools to maximise the use of our existing network, before upgrading and building anything new, keeping a lid on costs for all customers.
  • We will work to electrify our corporate and field fleet over time and roll out rooftop solar and battery systems at depots across the network.

Powercor keeps costs down in plan for a stronger, smarter and fairer electricity network

Powercor, Media Release, 10 September 2024

A $3.3 billion plan to deliver a stronger power network to better withstand extreme weather, support more electric vehicles and enhance reliability in regional areas has been unveiled by electricity distributor Powercor [11 September 2024].

The 2026-31 Draft Regulatory Proposal includes a plan to provide backup supplies to four areas, more weather-resistant infrastructure and incorporate even more reliability technology into parts of the network.

The plan would add just $2 to the annual network costs for Powercor’s residential customers.

Over the next five years, Victoria’s population is predicted to increase by 900,000, energy consumption is expected to rise by 35 per cent, renewable generation is expected to double and 22 per cent of cars are forecast to be electric. Meanwhile, communities are already experiencing more frequent and extreme weather that is damaging electricity infrastructure.

Powercor’s draft investment package is designed to meet these challenges, ensuring our network continues delivering reliable and safe power for more than 920,000 customers across central, northern and western Victoria.

Powercor General Manager Regulation, Renate Vogt, said thousands of customers had helped shape the investment proposal and had made it clear what they wanted Powercor to deliver.

“Our network plays an essential role in our customers’ daily lives so it’s critical that our investments meet their expectations and respond to our changing environment, while keeping costs down,” Ms Vogt said.

“Our proposal will deliver a stronger network to better withstand extreme weather, a smarter network to manage more electric vehicle charging and a fairer network where all customers have access to reliable power, no matter where they live.”

Proposed investments include:

  • $29 million to enable growth, electrification and uptake of customer energy resources, including introducing flexible export products to unlock additional solar through smarter solutions and enabling all customers to have universal access to standard wall-charging.
  • $233 million for more aerial inspections and new technology to better manage bushfire risks from vegetation clearances.
  • A $61 million resilience package to help the network and local communities manage extreme weather events, including fire and floodproof power poles, back-up power supplies for Apollo Bay, Ballan, Donald and Lancefield, and more on-the-ground support by introducing community support officers and expanding our emergency response vehicles.
  • $45 million to boost reliability for rural and regional customers by upgrading rural powerlines, supporting communities to better participate in the energy transition.

“The rising cost of living is placing pressure on many of our customers so keeping network costs as low as possible has been important,” Ms Vogt said.

“We already operate one of the most efficient and low-cost networks and this plan continues to find smarter ways to maximise how we are using the network to get the most value for our customers.”

Powercor conducted its largest ever customer and industry engagement program to help develop its plans for the 2026-2031 period, engaging more than 8,700 customers during the past four years.

“This plan is for our customers and shaped by our customers,” Ms Vogt said.

The community now has an opportunity to provide feedback on the five-year draft plan before Powercor submits it to the Australian Energy Regulator for approval in early 2025. A series of workshops will be held across Victoria during September and October.

To find out more or to have your say, visit https://engage.powercor.com.au/ .

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