Investor Presentaiton
INFRASTRUCTURE FOR THE FUTURE
NETWORK BUSHFIRE UPDATE
Not expected to have a material impact upon the businesses
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SA Power Networks
South Australia experienced a number of fires
between mid-November 2019 and late January
2020. Across those fires the damage to electricity
infrastructure has been estimated between $5m-
$10m
SA Power Networks regulatory determinations
includes cost pass throughs for “natural disaster
events" which covers bushfires; however they will
not be applying for the cost pass through for
network damages as it is calculated as a return on
capex, not on the value of the damage itself
A class action claim has been filed against SA
Power Networks in relation to the Yorke Peninsula
fire
The AER accepted a late submission in February
2020 seeking additional funding for inevitable
increases in liability insurance premiums. This has
resulted in an increase to 2020-25 revenue of
approximately $16m
TransGrid
Damage was recorded to assets in the northern
and southern parts of NSW with interruptions also
recorded on the Queensland to NSW
interconnector (QNI) and the Victoria and NSW
Interconnector (VNI)
TransGrid's regulatory determination includes cost
pass throughs for "natural disaster events" which
covers bushfires
The National Electricity Rules (NER) require that
the event must meet a materiality threshold being
1% of the maximum allowed revenue (MAR) for the
relevant year (the threshold is therefore $7.6m for
TransGrid)
TransGrid expects to meet the threshold and have
requested and received approval from the AER for
an extension of time from 90 to 180 business days
from the end of the fires (2 March 2020) to submit
the application. This means TransGrid have until 13
November 2020 to lodge the application
Spark Infrastructure I Investor Presentation I August 2020
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