AusNet
| Company type | Private |
|---|---|
| Industry | Energy delivery |
| Predecessor | SP AusNet |
| Founded | 2004 |
| Founder | Singapore Power (as predecessor owner) |
| Headquarters | Melbourne , Australia |
Area served | Victoria, Australia |
| Products | Electricity transmission and distribution, Gas distribution |
| Owner | Brookfield Asset Management |
| Website | www |
AusNet—previously known as SP AusNet—is an Australian company specializing in energy delivery, overseeing electricity and gas network assets valued at over $13 billion. Once publicly traded on both the Australian Securities Exchange (ASX) and Singapore Exchange (SGX), AusNet is currently owned by Brookfield Asset Management.
History
In 2004, Singapore Power purchased TXU’s Australian energy assets for US$3.7 billion, subsequently divesting its power generation and retail divisions to the Hong Kong-based CLP Group for approximately $2.2 billion in 2005. Later that year, SP AusNet was listed publicly, with 49% of its remaining holdings sold for about $1 billion, while Singapore Power maintained a controlling 51% share. In 2007, SP AusNet collaborated with Babcock & Brown to acquire Alinta for $7.4 billion; however, the integration of Alinta’s assets was unsuccessful during the economic downturn of the Great Recession.
By May 2013, Singapore Power reduced its ownership by selling a 19.9% stake to State Grid Corporation of China for A$824 million, which placed the company’s valuation at A$4.1 billion.
Following the termination of its management services agreement with Singapore Power earlier in 2014, SP AusNet rebranded as AusNet in August of the same year.
In February 2022, after a successful acquisition in 2021 led by Brookfield Asset Management, with backing from Australian and Canadian pension fund co-investors, AusNet transitioned to private ownership.
Operations
AusNet manages three distinct energy networks within Victoria, Australia:
- An electric transmission network operating at high voltage and extra high voltage levels (66 kV and above)
- An electric distribution network handling low and medium voltage supplies (22 kV and below), serving eastern Victoria along with Melbourne’s eastern and northeastern suburbs
- One of three gas distribution networks across Victoria
As Victoria’s exclusive operator of high voltage electricity transmission networks and sole transmission network service provider (TNSP) within the National Electricity Market (NEM), AusNet engages in the Australian Energy Regulator’s (AER) revenue determination process. This process establishes the maximum allowable revenue (MAR) for TNSPs over five-year regulatory periods.
AusNet’s commercial division, Mondo, offers solutions that support community energy hubs and solar mini-grid developments.
Legal issues
The Victorian Bushfires Royal Commission in 2009 identified a conductor failure between poles 38 and 39 as the cause of the Kilmore East fire during the Black Saturday bushfires, which ignited surrounding vegetation. In response to ensuing legal actions, AusNet agreed to a settlement of AUD 260 million in July 2014. Contributions to this settlement included $10 million from Utility Service Providers and $29 million from the Victorian Government.
In December 2014, the Supreme Court of Victoria sanctioned AusNet’s AUD 378.6 million portion of a $494 million settlement resolving a second class action lawsuit. Utility Services Corporation Ltd contributed $12.5 million, while the Victorian Government provided $103.6 million. This settlement stands as Australia’s largest class action compensation to date, exceeding the previous record payout of $200 million.