An audit of Queensland’s six energy entities has found their financial statements to be reliable, in compliance with relevant laws and standards and prepared in a timely manner.
In its Financial Audit Report, Energy 2021 Report 7: 2021–22, the Queensland Audit Office (QAO), however, continued to find weaknesses in the entities’ information systems.
The QAO said entities covered were CleanCo, CS Energy, Stanwell, Powerlink, Energy Queensland and Ergon Energy Queensland.
“Implementing new systems requires entities to establish new processes for assigning and monitoring access to their systems,” it said.
“Significant weaknesses were identified in these processes.
“Given how much entities rely on their information systems, they all need to strengthen their security.”
The QAO said Energy Queensland and Ergon Energy Queensland had been implementing their new information systems since December 2017.
“One significant change in scope has caused the project to be delayed, with estimated final completion by December 2022,” it said.
“The total expected cost is $650 million, which is $77 million over the revised budget.”
The Office said the Report found that an increase in energy prices in May and June was largely caused by an incident at CS Energy’s Callide C power station, which forced the unit offline.
“Subsequently, multiple power stations and transmission lines tripped, resulting in blackouts to approximately 470,000 properties across the State,” it said.
“CS Energy is seeking recovery from its insurer for material damage and business interruption.
“As the sector diversifies to renewable sources, the energy entities need to ensure they remain profitable and deliver reliable electricity supply to Queenslanders.
“The generators continue to invest in renewable energy primarily through power purchase agreements with privately-owned solar and wind farms.”
The QAO said integrating renewables and new technology into the electricity network was also a challenge as the sources could be in remote areas and could provide less predictable supply.
“With reduced profits, transmission and distribution, entities need to manage their costs while maintaining network strength and stability,” the Office said.
The 29-page Report can be accessed at this PS News link.
