Regulator Rejects APA Bid to Regulate Basslink Cable

The Australian Energy Regulator (AER) has issued a draft decision rejecting APA Group’s proposal to convert the troubled Basslink undersea cable into a regulated transmission asset, citing insufficient benefits for consumers compared to the costs and risks involved.

Basslink, a 500MW interconnector linking Tasmania and Victoria, ran into financial trouble after a prolonged outage in 2015 caused by undersea cable failure. This outage occurred during a critical period when Tasmania faced depleted hydroelectricity reserves and limited gas generation, leading to significant power disruptions.