On 9 August 2021, approximately 34,000 customers across New Zealand experienced an electricity cut without warning. In response, the Electricity Authority (the Authority) used its statutory powers under section 16(1)(g) of the Electricity Industry Act 2010 (Act) to launch a two-phase review into the outages.

The Phase 1 review (published in September 2021) focused on the system operator’s demand allocation tool and communication processes and protocols.

The Phase 2 review (published in April 2022) was wider in scope and provided a final summary of the various investigations, observations and recommendations which have been conducted by the Authority, Transpower and the Ministry of Business, Innovation and Employment (MBIE).

In addition to the two-phase review, the Authority has considered alleged breaches of the Code on 9 August 2021 by three participants and an Undesirable Trading Situation claim

Progress since 9 August 2021

Phase 2: Final report - Complete April 2022

The Authority’s phase two review focused on lessons that can be learnt from the event for the Authority, lines companies, the system operator, generators, retailers, and direct connect consumers.

The  Phase 2 review:

(a) confirms the earlier findings of the Authority’s Phase 1 review, and the Ministerial Investigation, that Transpower’s coordination and communication failures meant consumers were disconnected unnecessarily

(b) takes into account recommendations made in the various reports and investigations looking into the 9 August events conducted by the Authority, system operator (Transpower), and the Ministerial Investigation

(c) makes new observations and recommendations intended to create enduring, and widespread, system improvements to the management of future events.

9 August 2021 event timeline

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Quarterly ministerial reports

The Minister requested quarterly progress updates on the response to recommendations made in the Ministry of Business, Innovation and Employment’s final report on the investigation into electricity supply interruptions of 9 August 2021 (the Ministerial investigation). 

The first report was provided in March 2022. The second report was provided in June 2022. 

Phase 1: Immediate Assurance Review - Complete September 2021

The Authority actively manages the performance of the system operator, Transpower.

During Phase 1, the Authority worked closely with Transpower and interviewed a range of industry participants, including direct connect consumers, distributors, retailers and generators to gather the facts and understand the response to the events on 9 August.

Phase 1 of the review found issues in the system operator’s tools and processes. The key areas of concern were communication processes and a miscalculation of demand allocation using the Load shed and restore (LSR) decision support tool.  

The Authority published a report of its findings and recommendations for Transpower on September 10, 2021.

Transpower's progress on the Phase 1 recommendations

The system operator has made significant improvements to its communication processes and associated protocols since 9 August, 2021.

The Authority is working closely with the system operator to close out the Phase 1 recommendations. A number of these have been addressed and we have processes in place for progressing or resolving the remaining recommendations.

The Authority and Transpower also have joint project plans and governance arrangements to progress the recommendations informed by MBIE’s investigation.

The Authority is confident the adoption of the Phase 1 recommendations will ensure the system operator’s decision support tools and communications processes are better placed to manage future demand management events and to minimise impact on consumers.