Power Risk Management & Energy Risk Management for the Energy and Electricity Sector
Energy & Power industry in Australia and New Zealand
The Energy & Power industry can be divided into four major segments:
The Generation Sector
The electricity generation sector includes the production of electricity from non-renewable sources such as coal and gas, as well as renewable sources such as hydro, solar, and geothermal. As the energy mix shifts toward renewables, renewable energy risk management has become a growing focus for generators — covering risks specific to intermittent supply, grid integration, and new asset classes such as large-scale solar and wind farms.
The Transmission Sector
The electricity transmission sector involves the operation of high-voltage electric power transmission systems and control electricity transmission from generating plants to distribution networks. Transmission includes the use of power lines and transformer stations. The primary activities are high-voltage electricity transmission and substation operations.
The Distribution Sector
The electricity distribution sector considers the companies that operate low-voltage electricity distribution systems to deliver electricity to consumers and the companies that transport electricity sourced from upstream high-voltage transmission networks. Some of the primary services are held on behalf of electricity retailers such as electricity distribution, streetlight operation and smart meter installation.
The Retailer Sector
Electricity retailing involves the buying of electricity from generators and selling it to the end user and involves the relationship between the retailer and consumer.
Energy Market Risk
Beyond the physical infrastructure of generation, transmission, distribution, and retail, the energy sector also carries significant market-based risk. Wholesale electricity prices across Australia and New Zealand are subject to high volatility, driven by fuel cost fluctuations, extreme weather events, and supply-demand imbalances. Organisations operating in this space are exposed to market operator requirements, settlement obligations, and the financial consequences of price spikes or market suspensions.
Effective energy market risk management requires more than physical emergency preparedness alone — it requires governance frameworks that account for both operational disruption and market exposure. Resilient Services helps organisations build power risk management strategies that address this dual exposure, supporting clients across both the physical and commercial dimensions of energy risk management.
Australian Energy and Electricity Industry Legislation
- Australian Energy Market Act 2004
- Australian Renewable Energy Agency Act 2011
- Australian Renewable Energy Agency (Consequential Amendments and Transitional Provisions) Act 2011
- Building Energy Efficiency Disclosure Act 2010
- Clean Energy Finance Corporation Act 2012
- Clean Energy Legislation (Carbon Tax Repeal) Act 2014
- Clean Energy Regulator Act 2011
- Clean Energy Legislation Amendment Act 2012
- Competition and Consumer (Industry Code Electricity Retail) Regulations 2019
- Emergency Management Act 2013 (VIC)
- Emergency Management Act 2005 (WA)
- State Emergency and Rescue Management Act 1989 (NSW)
- Disaster Management Act 2003 (QLD)
- Emergency Management Act 2004 (SA)
- Emergency Management Act 2006 (TAS)
- Emergency Management Act 2013 (NT)
- Greenhouse and Energy Minimum Standards Act 2012
- National Greenhouse and Energy Reporting Act 2007
- Renewable Energy (Electricity) Act 2000
- Renewable Energy (Electricity) Amendment Act 2015
- Renewable Energy (Electricity) (Large-scale
- Generation Shortfall Charge) Act 2000
- Renewable Energy (Electricity) (Small-scale
- Technology Shortfall Charge) Act 2010
New Zealand Energy & Electricity industry legislation
Some New Zealand legislation that may be applicable to your business in the energy and electricity industry may include, but may not be limited to:
- Electricity Act 1992
- Electricity Industry Act 2010
- Energy Companies Act 1992
- Energy Efficiency and Conservation Act
- 2000Energy (Fuels, Levies, and References) Act 1989
- International Energy Agreement Act 1976
These lists are not exhaustive, and there may be additional legislation that is applicable to your business’ circumstances.
Energy & Electricity Industry Risk Management
The energy sector operates in high-risk, high-impact environments where disruption can affect not only business operations, but entire communities. Electricity generation and transmission rely on complex infrastructure, significant capital investment, and highly coordinated operations across large workforces.
Power is distributed through extensive transmission networks, making it vulnerable to a range of risks. When these systems are disrupted—whether through equipment failure, extreme weather, or operational incidents—the impact can be immediate and widespread.
Even short-term outages can result in:
- Loss of power to homes, businesses, and critical services
- Disruption to transport, healthcare, and essential infrastructure
- Safety risks to personnel and the public
- Financial loss and reputational damage for providers
In more severe events, such as bushfires, cyclones, or major storms, access to infrastructure can be limited—delaying restoration efforts and extending outage durations
Real-World Energy Sector Disruptions
- 18th January 2025 – Severe storms across New South Wales knocked out power to tens of thousands of homes, with authorities declaring a natural disaster. At its peak, the outage affected more than 260,000 properties.
- 13th February 2024 – A storm brought down transmission towers in Victoria, forcing AGL’s Loy Yang A power station offline and leaving more than 500,000 homes or businesses without power.
- 25th May 2021 – 400,000 Queenslanders lost electricity supply after a fire at Queensland’s Callide power station.
- 28th September 2016 – South Australia experienced a state-wide blackout.
- 16th January 2007 – A bushfire caused an outage of the interconnector between Victoria and New South Wales, leaving up to 200,000 people without electricity.
- 31st January 2020 – AusNet Services’ transmission’s double circuit 500 kV overhead electric line between the Moorabool Terminal Station to Tarrone Terminal Station experienced an outage.
- 28th- 29th January 2018 – Unexpected electricity outages in Victoria lead to over 94,000 people losing power supply to their homes. Resilient Services investigated the cause of the outage and co-authored a report for the Victorian Premier, a copy of which can be accessed via https://www.energy.vic.gov.au/__data/assets/pdf_file/0021/328260/Post-Event-Review-Power-Outages-28-and-29-January-2018.pdf https://www.energy.vic.gov.au/__data/assets/pdf_file/0021/328260/Post-Event-Review-Power-Outages-28-and-29-January-2018.pdf
- 29th January 2020 – A major storm that hit Perth left 50,000 homes and businesses in Western Australia without electricity.
- 1st March 2021 – Cyclone Niran resulted in the loss of electricity to the city of Cairns for several hours.
- February 2020 – 140,000 Sydney homes were left without electricity for several days after severe storms impacted transmission and distribution lines.
Emergency Management Plans, Procedures, Exercises and Training for the Energy and Electricity Industries
The energy sector operates within a highly regulated environment, where organisations must implement structured risk management systems, emergency management plans, and regular training to prepare for potential disruptions. Given the scale and impact of incidents in this industry, preparedness is not optional — it is a regulatory and operational requirement.
Resilient Services supports organisations across the energy sector with practical, compliance-aligned solutions that strengthen emergency response and overall resilience. Our experience spans government agencies, regulatory bodies, and ASX Top 100 companies, where we have delivered detailed safety reviews, regulatory assessments, and targeted training programs tailored to real-world risk environments.
We have developed and implemented a wide range of resilience frameworks, including:
- Emergency management plans
- Business continuity strategies
- Crisis communication procedures
- Scenario-based exercises and simulations
Our work spans generation, transmission, and distribution operators throughout Australia and New Zealand. Through advanced modelling, including weather-related supply interruption analysis, we have helped organisations reduce outage durations, improve response coordination, and avoid regulatory penalties.
By combining industry expertise with a structured approach to energy and power risk management, we help organisations move beyond compliance — building capability that performs under pressure.
Why Choose Resilient Services?
Resilient Services is led by experienced Emergency Management Consultants with real-world operational and emergency response experience across high-risk and critical infrastructure environments. We help energy and power operations across Australia and New Zealand strengthen emergency preparedness, response capability, incident coordination, and organisational resilience through practical, tailored emergency management consulting services.
- Aligned with recognised standards including AS 3745 and ISO 22320:2018
- Informed by energy-sector-specific legislative and regulatory frameworks, including state Electrical Safety Acts and Work Health and Safety obligations
- Tailored to your site's operational risks, including generation, transmission, distribution, and remote-asset hazards
- Practical, scenario-driven, and built around real energy sector incidents such as switching errors, plant fire and explosion, and major outage or grid failure events
- Designed to strengthen coordination, governance, communication, and response capability across operators, contractors, and emergency services
- Structured to deliver measurable organisational capability improvement, tested through site-based emergency exercises
We focus on building confidence, coordination, and operational resilience on-site, not simply on delivering plans or training hours.
Strengthen Your Energy Sector Risk Management
Speak to our team about strengthening your energy sector risk management and emergency preparedness.
Fill out an enquiry form or call us on 03 9003 9370 to find out more and to see how we can help your business prepare for the unknown.
Your Power & Energy questions answered
Common questions
What is emergency response in energy and power operations?
Emergency response in the energy sector is the set of procedures, training, and resources a site uses to manage incidents such as electrical faults, plant fire, gas or hazardous material release, or major equipment failure, with the goal of protecting personnel and limiting damage to operations and the environment.
Why is risk management important in the energy and power industry?
Energy and power sites operate high-voltage equipment, critical infrastructure, and processes where a single failure can cause serious harm, widespread outages, or environmental damage. Effective risk management identifies these hazards early and builds the controls and response capability needed to prevent incidents from escalating and to keep essential services running.
Who is responsible for emergency response planning on an energy site?
Responsibility typically sits with site management and operators, supported by safety and emergency management personnel, in coordination with contractors, network partners, and external emergency services. Clear governance and defined roles are essential given the number of parties often involved across generation, transmission, and distribution sites.
How often should an energy sector emergency response plan be tested?
Plans should be reviewed regularly and tested through site-based exercises at least annually, or more frequently where there is a change in operations, equipment, regulatory requirements, or following an actual incident, to ensure the plan remains current and personnel remain capable of responding effectively.
Book Your Free 30-Minute Business Resilience Assessment
Practical advice backed by real-world resilience & emergency management experience
- Review your current emergency preparedness and continuity capability
- Identify key risks, response gaps, and improvement opportunities
- Receive actionable next-step recommendations tailored to your organisation
What our clients are saying
“It was thoroughly enjoyable to work with the team at Resilient Services. Clearly, this team is enthusiastic, enjoys what they do, and is proud of what they produce.”
Head of Corporate Risk.
Oil and Gas Producer
“What stood out about Resilient was their practical approach. Meeting the team impressed me with their focus on practical solutions rather than theoretical consultant-driven approaches.”
Geelong Port.
General Manager for Health, Safety, Environment, & Quality
“Business continuity plan is comprehensive and flawless.”
Top 4 Australian
Accounting Firm 2021