Bill for bushfire safety program rises to almost $700 million

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Bill for bushfire safety program rises to almost $700 million

By Benjamin Preiss and Adam Carey

The cost of an experimental program to reduce bushfire risk from powerlines is set to blow out to almost $700 million – more than four times its initial cost – amid warnings it will make the electricity network less reliable.

Electricity distributor Powercor is seeking approval to spend a further $164 million to install rapid earth fault current limiters at eight electrical substations in fire-prone parts of western Victoria.

Warrick Ballinger is installing diesel generators at his holiday units in Apollo Bay.

Warrick Ballinger is installing diesel generators at his holiday units in Apollo Bay. Credit: Luis Ascui

A rapid earth fault current limiter is a network protection device that can reduce the risk of a fallen powerline sparking a fire. It is capable of detecting when a powerline has fallen to the ground and almost instantaneously reduces the voltage on the fallen line.

The costs of installation would be passed on to energy users, and the increase would push the overall cost of the program to $683 million.

It was first costed at $151 million in 2015, when the Andrews government made the installation of rapid earth fault current limiters, known by the acronym REFCL, compulsory at 45 substations.

Powercor expects its tranche three rollout to add about $12 to its residential customers’ bills each year.

Powercor also said in its application to the Australian Energy Regulator that “there is a decrease in reliability to customers once the REFCL is in operation”.

The decrease could expose some Victorian towns to the risk of lengthy blackouts on days of total fire ban this summer.

The owner of a luxury getaway in Apollo Bay said he will spend up to $200,000 on diesel generators to guarantee uninterrupted power supply, after Powercor told him the seaside town could face longer outages this summer.

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Apollo Bay is fed by high voltage power lines from Colac, where one of these current limiters has recently been installed.

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Seafarers Getaway owner Warrick Ballinger said he decided to purchase generators after Powercor told him the installation could lead to longer outages on total fire ban days.

“The way we operate our system on total fire ban days is in line with our regulatory requirements that were set following the Victorian Bushfire Royal Commission,” the Powercor manager wrote in an email to Mr Ballinger.

“In regards to the REFCL device, if it does detect a fault and operates, there may be a longer outage, but this is to ensure the chance of a fire is reduced.”

Mr Ballinger said it was a serious cost to his business but he felt he had no choice.

“We’ve got 23 apartments here, [we’ve] got international guests that we’re charging reasonable money – it’s not a budget place – and they expect the air conditioners to work and the lights to work,” Mr Ballinger said.

The royal commission recommended reducing the risk of powerline fires after it was revealed that fires that started from powerline faults caused 159 of 173 deaths on Black Saturday in 2009.

Powercor's electricity networks general manager Steven Neave said the devices activated 12 times on total fire ban days last summer.

“Powercor is focused on delivering safe power to homes and businesses, and these devices are significantly improving the safety of our infrastructure and reducing the risk of fires starting from electricity assets,” he said.

According to CSIRO trials,  rapid earth fault current limiters reduce the risk of a spark from a fallen high voltage powerline by 50 to 55 per cent.

Victoria is the only place in the world that uses them to reduce bushfire risk.

The Andrews government was advised last year following an expert review of the program by Victorian Public Sector Commissioner Dr Paul Grimes that costs of the program had blown out to a point where they outweighed the benefits.

Opposition MP Richard Riordan, whose electorate includes Apollo Bay, called for the program to be halted.

He said communities along the Great Ocean Road could be put at risk by the technology.

Mr Riordan said the technology was designed for European conditions and was not appropriate for the Australian environment.

“It’s a fundamental mismatch of technology,” he said.

Energy Minister Lily D'Ambrosio said the government made "no apologies" for rolling out the "life-saving technology", insisting it reduced fire risk by an estimated 70 per cent in some of the most bushfire prone areas.

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