Australian Energy Regulator v Snowtown Wind Farm Stage 2 Pty Ltd

In the Federal Court of Australia, the Australian Energy Regulator (AER) brought proceedings against Snowtown Wind Farm Stage 2 Pty Ltd (SWF2) regarding contraventions of the National Electricity Rules (NER). The dispute centred on whether SWF2's actions led to the cessation of active power supply during a significant under-voltage disturbance, contributing to the South Australia blackout on 28 September 2016. Although SWF2 did not admit to the specific contraventions, it agreed to pay a penalty and implement a compliance program.

The court had to determine whether it was appropriate to make a declaration of contravention by SWF2, despite the lack of admission by SWF2, and whether the proposed penalty and compliance measures were suitable. The court considered factors such as the real and substantial nature of the question, the AER's legitimate interest, the presence of a contradictor, and the public interest in the matter. It also evaluated the utility of the declaration, the educative purpose it served, and the adequacy of the particulars in the declaration.

The court found that the declaration was appropriate, given the public importance of the matter and the educative purpose it served. It accepted the terms of the proposed declaration, the penalty, and the compliance program. Consequently, the court ordered SWF2 to implement a compliance program, pay a pecuniary penalty of $1 million, and cover the AER's costs of $100,000. The remaining claims were dismissed, and liberty was granted to the parties to apply regarding the identification of the Compliance Expert.

The final orders included the implementation of a compliance program within 15 days, payment of a $1 million penalty within 28 days, payment of $100,000 in costs within 28 days, dismissal of the remaining claims, and liberty to apply for the identification of the Compliance Expert.