7. Hon Dr NICK SMITH (National—Nelson) Link to this
to the Minister of Energy
Does the report into the Auckland power blackout on 12 June identify why the failure of a single D-shackle resulted in 700,000 people losing electricity at an estimated cost of up to $70 million?
Hon DAVID PARKER (Minister of Energy) Link to this
Yes. The failure was caused by two D-shackles breaking. The cost of the power outage is debatable, but was significant.
Hon Dr Nick Smith Link to this
Why did the Minister’s office advise the media that the report on the Auckland blackout would be available prior to question time today, but has subsequently advised media that the report would not be available because he could not get the photocopier in his office to work; and, if he cannot get the photocopier in his office to work, how the heck does he expect to keep the lights on properly?
The report was received by me on Friday afternoon. It was considered by Cabinet yesterday. I had a number of questions arising from the report that I wanted at least preliminary answers to before I released it. I was going to release it at 1.30, then I had a question from the member, and, as my staff were busy, I put the release back until 3 o’clock.
Maryan StreetI am advised that a detailed physical inspection of all the shackles at the Ōtāhuhu substation has been completed. Two additional shackles were replaced, in addition to the two that broke. Shackle connections throughout the country are being progressively checked, starting with those in situations where the adverse effects of failure would be highest.
Hon Dr Nick Smith Link to this
Noting that this month the Minister has overseen a massive blackout in Auckland on 12 June, a lunchtime blackout in Rotorua’s central business district on 19 June, a further Bay of Plenty blackout on the evening of 19 June, and a grid emergency last Thursday in Wellington—all caused by transmission grid failures—does he accept that our transmission grid is so fragile that more grid emergencies and failures under his Government are highly likely?
I do accept that the extreme weather events we have had, together with the peak power demand that that has caused, have put the system under extreme stress and that the safety margins we have in the system are not great enough. I am working to address that.
Gordon CopelandWill the Minister ask for a similar report into the severe blackouts in the mid and South Canterbury regions that have left households without heating and in the dark during the coldest part of the winter, some for 16 days so far; if not, why not?
It is already apparent that most of the problems we have had in the Canterbury region actually are not with Transpower facilities but with the time taken to rebuild some of the breakages to local networks.
Peter BrownIs the Minister aware that wherever a D-shackle is used in a strategic position aboard a ship, there is always a preventer system in place to ensure that if the shackle fails, the whole rig does not collapse; and, now that he is aware of that, does he think there is any merit in Transpower having some serious discussions with the maritime industry?
I was not aware of that, but I am sure Transpower will be looking again at its maintenance regimes and reliance on D-shackles in situations such as this.
Brian ConnellGiven the long outages following the snow storm in south and mid-Canterbury—it has now been 16 days and some people are still without power—will the Minister be seeking a report from the Electricity Commission or his officials so that we can learn how to deal with these issues without affecting the power supply in the future?
Madam SPEAKERHon Dr Nick Smith Link to this
Is the Minister aware that over 2,000 kilometres of new transmission wires were built in the 1950s, the 1960s, and the 1970s, that 900 kilometres of new transmission wires were built in the 1980s, and that another 300 kilometres of new wires were built in the 1990s, but that in the last 7 years not 1 kilometre of new transmission wire has been constructed, despite a 20 percent increase in power usage; and is it not blatantly obvious that his Government must accept some responsibility for the transmission system now being on the blink?
There have been significant investments in additional capacity on existing transmission routes during that period, but more does need to be done.
Hon Dr Nick Smith Link to this
What steps or reforms will the Government make to the confusing array of Government bodies with electricity responsibilities, which includes the Electricity Commission, the Commerce Commission, Transpower, and the Ministry of Economic Development, when there is a chorus of commentary from Treasury, the International Energy Agency, KPMG, and industry leaders describing the Government’s set-up as “confusing”, “needing clarification”, and, according to industry sources, “a bugger’s muddle”?
I note, as I noted last week, that the International Energy Agency made very supportive comments about the Electricity Commission, although it did agree that the division of responsibility between the Commerce Commission and the Electricity Commission needed to be sorted out. I can assure the member that one of the changes we will not make is to go back to the system left by the previous National Government, when decisions as to investment in the grid were left to a committee of consumers rather than planned by Transpower or any other Government agency.