“Reliable power should not be a luxury,” Strathbogie Shire Mayor Scott Jeffrey said.
Frustration is growing across Strathbogie Shire after the Australian Energy Regulator rejected a long‑awaited electricity reliability upgrade, leaving thousands of residents and businesses uncertain about ongoing power outages.
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Last week, the AER ruled against AusNet’s $38.1 million proposal to build a new “express feeder” between Benalla and Euroa, a project the company said would significantly improve reliability for Euroa, Violet Town and surrounding rural communities.
Instead, the regulator approved $5.7 million for a broader roll-out of covered conductors on the existing line.
At the centre of the decision is the Benalla‑to‑Euroa BN11 feeder, the longest single‑line feeder in AusNet’s Victorian network.
The ageing line has no meaningful backup, meaning that when it fails due to storms, extreme heat, fallen trees or wildlife strikes, entire towns can be left without power for days.
The BN11, shown in yellow, is the longest of its type in Victoria, about 1200km long. Source: AusNet, GridView, Google/Rosetta
In its determination, the AER acknowledged community concerns about poor reliability but concluded the express feeder did not address the root causes of outages and came at an unjustifiable cost to consumers.
The regulator found the proposed line would largely mirror the existing route, leaving it exposed to the same environmental risks, while only providing backup for certain faults rather than reducing outage frequency.
It also noted AusNet’s modelling showed the project would not materially reduce blackouts.
Instead, the AER backed expanded installation of covered conductors, insulated power lines designed to reduce outages caused by vegetation and animal contact, arguing this approach targets underlying causes at a significantly lower cost.
Locals, the shire council and the state member, all remain unconvinced the upgrade will resolve long-standing issues with the ageing distribution line.
State Member for Euroa Annabelle Cleeland said the decision failed to reflect conditions on the ground.
“This is not just an infrastructure decision, it goes directly to the safety, wellbeing and liveability of our region,” Ms Cleeland said.
“The current situation is simply not acceptable.”
She said extended outages were placing families at risk during extreme weather and putting pressure on farms, small businesses and residents who rely on powered medical equipment.
Euroa café owner Broderick Lloyd said power failures had become routine.
“In the last three years, we’ve had well over a hundred blackouts,” Mr Lloyd said.
“It used to be a joke, but now it’s exhausting.”
He said outages force him to protect refrigerated stock, run generators and stay on site overnight to avoid losses.
“If the power’s out too long, I could lose $20,000 or more in stock,” he said.
“That’s weeks of work gone.”
Mr Lloyd also pointed to risks during emergencies, recalling January’s Longwood bushfire when power was lost as fires burned nearby, cutting communications and disrupting essential services.
“That’s terrifying in a fire situation,” he said.
An AusNet spokesperson said the decision fell short of what was needed to address reliability pressures.
“AusNet’s priority remains delivering safe and reliable electricity services for customers and communities across Victoria,” the spokesperson said.
“We are reviewing the decision in detail and considering its implications for the Euroa region.”
Strathbogie Shire Council says more than 5000 customers rely on the BN11 feeder.
Mayor Scott Jeffery said the council had hoped the express feeder would deliver long‑term resilience.
“Covered conductors won’t protect businesses losing stock, farmers needing power for water, or residents relying on medical equipment when the line goes down completely,” he said.
“Reliable power should not be a luxury.”
Ms Cleeland said she would continue pushing for alternative solutions.
“Our region should not be left behind when it comes to essential infrastructure,” she said.
“I will continue to fight to ensure our communities have access to safe, reliable power.”
