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Kangaroo Island energy needs overlooked

7 May 2010

South Australia's Energy Minister Patrick Conlon has criticised the Australian Energy Regulator (AER) for not recognising Kangaroo Island's need for a replacement undersea electricity supply cable.

'In its final determination, the AER did not provide an allowance for the installation of a new undersea electricity cable to supply Kangaroo Island,' Minister Conlon says.

"In my view, this decision exposes Kangaroo Island residents to unnecessary risk and restriction on growth.

"On behalf of the State, I made two submissions advocating for ETSA's position and the AER has simply ignored the advice.

"I believe the rejection of this project has been based upon a misconception that the second undersea cable was intended to provide a higher level of supply reliability - rather than replace the existing 18-year-old cable."

In the State Government's submission, it stated the reasons for upgrading the supply as being:

  • The iconic status of KI as a growing tourist destination and expanding local development indicate that electricity demand may exceed the cable's supply capability towards the end of the regulatory period.
  • Some residents of KI rely on supplementary power supplies from their own generators and deserve a stronger grid supply.
  • ETSA has indicated the current cable is nearing the end of its life and the previous regulator, the Adelaide-based Essential Services Commissioner of South Australia, had identified the period 2010 to 2015 for its replacement.

"Kangaroo Island needs a new cable to ensure continued reliable supply to the Island and also accommodate growth in demand," Mr Conlon says.