🇦🇺Australia

Excessive Study and Assessment Costs

2 verified sources

Definition

AER approved $3.6B revenue for TransGrid and $0.9B O&M allowances including reinforcements and studies; delays in processing amplify costs via overtime and extra modeling[1][4].

Key Findings

  • Financial Impact: $900M O&M allowances over period (incl. study management); 140% investment increase tied to compliance/reliability studies
  • Frequency: Per regulatory period (5 years); per project
  • Root Cause: Manual delays in application reviews, model assessments and contract negotiations

Why This Matters

The Pitch: Electric Power Transmission firms in Australia 🇦🇺 incur $0.9B+ in approved O&M expenditure partly from study delays. Automation of request processing cuts excessive overtime and rush costs.

Affected Stakeholders

Transmission Network Service Providers, AEMO, Engineers

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Delayed Interconnection Approvals

20-40 hours/month per request in manual delays; lost sales from queues (industry standard 2-5% capacity utilisation loss)

Lost Generator Connections from Process Delays

2-5% lost sales/deals from queue delays (industry standard for slow UX); 6-12 months typical project timeline

Incident Response Remediation Costs

AUD 500,000 - 2M per ransomware incident (downtime and recovery)

Operational Downtime from Cyber Events

AUD 5,000 - 20,000 per hour of grid downtime

Capacity Loss from Failed Demand Response Events

AUD $15,000-$30,000 per MW annually in missed incentives (e.g., 200kW x 10 events x $15/kW = $30,000)

Delayed Verification and Payment Drag in DR Administration

AUD 30-60 days high Accounts Receivable drag on $4.6m+ payouts; opportunity cost at 10% financing = $460,000+ locked capital

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