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PUBLISHER'S LETTER Publisher & Editor-in-Chief Leo Simpson, B.Bus., FAICD Production Manager Greg Swain, B.Sc.(Hons.) Technical Staff John Clarke, B.E.(Elec.) Robert Flynn Rick Walters Reader Services Ann Jenkinson Advertising Manager Brendon Sheridan Phone (03) 9720 9198 Mobile 0416 009 217 Regular Contributors Brendan Akhurst Garry Cratt, VK2YBX Julian Edgar, Dip.T.(Sec.), B.Ed John Hill Mike Sheriff, B.Sc, VK2YFK Ross Tester Philip Watson, MIREE, VK2ZPW Bob Young SILICON CHIP is published 12 times a year by Silicon Chip Publications Pty Ltd. A.C.N. 003 205 490. All material copyright ©. No part of this publication may be reproduced without the written consent of the publisher. Printing: Macquarie Print, Dubbo, NSW. Distribution: Network Distribution Company. Subscription rates: $59 per year in Australia. For overseas rates, see the subscription page in this issue. Editorial & advertising offices: Unit 34, 1-3 Jubilee Avenue, Warrie­ wood, NSW 2102. Postal address: PO Box 139, Collaroy Beach, NSW 2097. Phone (02) 9979 5644. Fax (02) 9979 6503. ISSN 1030-2662 and maximum * Recommended price only. 2  Silicon Chip Auckland’s blackout is a timely lesson No doubt there have been many jokes about blackouts over the last month or so, at Auckland’s and New Zealand’s expense. But Australia and most other developed countries are in no posi­tion to laugh. It could easily happen to us. Supposedly, the reason for the failures of the four oil-filled high voltage cables supplying Auckland is that they were very old and had not been properly maintained by the NZ electricity supplier, Mercury Energy. It is true that, as with many recently privatised elec­tricity suppliers around the world, Mercury had laid off a lot of its staff and therefore it was probable that much maintenance had fallen by the wayside. Many government and privatised Australian electricity sup­pliers are going down exactly the same path of retrenchments in the name of efficiency and profits. Well, as most people would suspect, maintenance schedules and reliability of power supply must suffer. If you need any help in imagining just how bad this black­out in Auckland is, just consider how you would cope with little or no electricity for a period of several months! That is what has happened in the central business district of Auckland. The cost to big and small companies must be enormous. Already, Mercury Energy has announced that it will probably have to sell its $NZ300 million stake in its neighbouring utili­ty, Power New Zealand, to pay for the inevitable claims against it in the aftermath of the Auckland power crisis. You can expect that Australian energy authorities are taking a really close look at this disaster and the way it eventually pans out. Some people have suggested that Australian engineering staff presently in Auckland are not only there to assist but to also work out the best way to cope with a similar emergency if it happens here. And don’t think it couldn’t happen here. As I understand it, the Sydney CBD is supplied by a similar setup. Are the cables well maintained? You’d better hope so because the costs of a similar power interruption to Sydney’s CBD could run into bil­lions. One thing’s for sure. This event will make energy authori­ties reassess the real cost of power generation and supply. If electricity customers are likely to sue a supplier to recover the costs of power interruption (and why shouldn’t they?), then those costs are going to be built into power charges. Insurance companies are also likely to very closely assess electricity suppliers’ plant condition and maintenance before setting their premiums. And financial assessors such as Moody’s Investment Services and S&P are going to be equally vigilant – they could easily downgrade the credit status of many state-owned and privatised energy suppliers in this country. It’s interesting, isn’t it? Auckland’s misfortune could place the drive for “efficiency” and privatision of Australia’s utilities in a whole new light. That would be no bad thing. I feel really sorry for the people of Auckland. In our own operation here at SILICON CHIP we have suffered the occasional blackout which has lasted several hours. The sense of frustration is overwhelming. Because we are so wedded to electricity in everything we do, literally everything comes to a halt during a blackout. You can’t use the computers, you can’t use the phones after an hour or so, you can’t write with a pen (it’s too dark), you can’t work at the bench. You can’t even make a cup of tea or even go to the toilet (it’s pitch black down there!). No, to have blackouts or no power at all over a period of several months would be unthinkable. At the very least we would have to move office or bring in a diesel generator to run the SILICON CHIP offices. Multiply that scenario over thousands of Australian businesses and you’ve got a real disaster on your hands. You don’t think it could happen here? I really do hope you’re right! Leo Simpson