The Australian Energy Regulator has taken New South Wales high-voltage grid operator Transgrid to the Federal Court, alleging breaches of electricity rules that caused prolonged power outages in Broken Hill last year.
The blackouts affected the outback town and surrounding areas after a transmission line failure, which was meant to be backed up by two Transgrid generators.
However, one generator was offline for maintenance, while the other experienced multiple outages, leaving residents with intermittent power for around two weeks.
The AER claims Transgrid failed to properly manage and maintain its network to minimise interruptions and did not act promptly to restore power, among other alleged violations of the National Electricity Rules.
"Network service providers must be prepared to adequately manage and maintain electricity supply for their customers," said AER chair Clare Savage.
She added that the regulator's court action followed a detailed investigation, conducted with NSW's independent price regulator, and is seeking penalties, declarations, and costs.