Trouble on the Horizon for regional power play after audit sparks competition concerns
Regional energy supplier Horizon Power is in hot water after auditors found the Government-owned utility did not comply with rules designed to protect competition.
An audit by ACIL Allen found seven key compliance failures, according to a report released by the Economic Regulation Authority on Thursday.
The auditors said the impact was not likely to be material in a market with “little competitive activity”.
But it follows years of work to rewrite the regulations in the North West to encourage private investment and support the huge green energy projects needed to lower carbon emissions in mining.
Horizon’s business runs power generation, network and retailing, and the rules — referred to as “ring fencing” — are to stop anti-competitive behaviour and special deals between those arms.
That means the network business should not favour Horizon’s own projects or share commercially sensitive information with other parts of the company.
ACIL Allen’s most significant finding was that the networks business may not be providing the same level of service to competitors as for in house .
Managers in one business unit also appeared to expect the company’s control centre would “dispatch Horizon Power’s generators to maximise returns rather than comply with the procedures”, the report said.
But there was no evidence that the control centre did not comply.
ACIL Allen also revealed none of the breaches had been reported to management.
The Government-owned business promised a range of actions to fix the problems. That will include more regular training, annual reporting by staff, and amending the rules.
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