SoCI compliance could cost Endeavour Energy $48m opex over five years

Compliance with federal infrastructure security laws could cost Endeavour Energy as much as $48 million between 2024 and 2029, according to a regulatory submission published by the provider.

Endeavour Energy has told the Australian Energy Regulator it intends to spend $129 million on ICT capex between 2024 and 2029, a reduction of 58 percent compared to the previous five years.

The company said compliance with the Security of Critical Infrastructure Act (SoCI) could impose ongoing operational expenditure costs of $48 million, cautioning that “this is a high level estimate that requires validation”.

The capex required for SoCI compliance is not broken out as its own line item.

The spend is revealed in the company’s Draft Regulatory Proposal [pdf], launched on Friday for public comment.

Regulatory proposals are put by energy companies to the Australian Energy Regulator every five years, with the regulator then approving or asking for revisions to their planned capex.

Endeavour said the reduction in ICT capex reflects the completion of a long-needed upgrade commenced in 2019.

“After several years of under-investment below industry benchmarks, we undertook a substantive ICT transformation program over the current period," it said.

"Our focus for the next period will be maintaining these new systems and making targeted improvements where justified.

“Our recurrent ICT is expected to return to a sustainable BAU [business as usual] level that is below industry benchmarks.”

Highlights of Endeavour Energy’s planned ICT spend include $24 million to "enable and facilitate customers’ future energy choices and known preferences through the provision of
smart, seamless digital service platforms, secure connectivity to behind-the-meter devices and support for a real-time flow of data”.

There’s also $72 million to enhance the platforms providing Endeavour Energy’s network services, including “increased protection against cyber security threats”; SoCI compliance; and enhanced data and analytics.

“Better data and insights, enhanced operational capabilities and automation”, to support greenfield deployments such as around Western Sydney International Airport, will get $15 million.

The company predicts adoption of software-as-a-service to save it around $800,000 in the five year period.