ElectraNet has cancelled a proposed upgrade investment at its Baroota substation in Mid North SA.
The cancellation was highlighted within a Project Assessment Draft Report (PADR) stating that the upgrade would not deliver a positive net benefit to customers.
The initial upgrade at Baroota was planned to ensure compliance with an increase to the reliability standards set by the Essential Services Commission of South Australia (ESCOSA).
Rainer Korte, ElectraNet’s Executive Manager Asset Management, said a comprehensive economic assessment based on reduced demand forecasts and changes to the value customers place on reliability, had found significantly lower consumer benefit.
“We have actively pursued lower-cost solutions to meet the ESCOSA requirement, including a non-network solution, but in the end our economic assessment has concluded that none of the options deliver a positive net benefit to consumers.
“Given this outcome, ElectraNet considers it is not in the best interests of consumers to proceed with the upgrade and we have asked ESCOSA to remove the requirement to increase the Baroota reliability standard from December 2017.
“Transmission customers at Baroota will continue to receive the same level of reliability they do today. Importantly, electricity consumers across South Australia will benefit with the lower costs from cancelling this project flowing through to electricity bills from 2018.”