Heatwave and Bushfires Trigger Widespread Power Outages, Prompting Government Relief Payments

MELBOURNE, 27 January 2026 – A record-breaking heatwave and devastating bushfires have plunged parts of southeastern Australia into darkness, causing prolonged power outages for thousands. In response, the Australian and Victorian Governments have announced emergency payments for households left without electricity for a week or more, as energy experts warn the crisis underscores the urgent need to accelerate the transition to renewable energy.

Extreme Weather Drives Grid Failures

A severe heatwave, with temperatures soaring above 45 degrees Celsius in parts of Victoria and nearing 50 degrees in South Australia, has placed immense strain on the electricity network. The conditions have fuelled fierce bushfires, which have scorched over 350,000 hectares in Victoria alone, destroying critical infrastructure including powerlines. Separately, network operator Powercor is investigating whether space weather, including solar flares and geomagnetic storms, contributed to a separate outage on Tuesday 20 January that briefly cut power to nearly 8,000 customers in western Victoria.

Key Outage Statistics

Government Announces Prolonged Power Outage Payments

For Victorian households severely affected by the bushfires and heatwave, financial relief is on the way. The Prolonged Power Outage Payment will provide $2,380 per week, for up to three weeks, to eligible customers who have been without power for seven cumulative days from 7 January 2026. Applications, administered by AusNet Services, are open until 31 March 2026. Customers are advised to have their National Metering Identifier (NMI) and bank details ready to apply.

Energy Transition Under the Microscope

The crisis has intensified debate about Australia’s energy future. Energy analyst Tim Buckley criticised the recent extension of the Eraring coal-fired power station as a “short-term fix,” arguing that ageing, unreliable coal plants are the primary cause of system instability. “We’ve had 20 outages at Callide C in Queensland in just four years,” Buckley said. He pointed to record renewable energy generation in late 2025 as proof the grid can handle clean energy, noting South Australia averaged 72% renewables for the year without major blackouts.

This view is supported by data from the Clean Energy Council, which shows coal breakdowns are a major driver of wholesale price volatility. The organisation warns that delays in building renewable energy, storage, and transmission could add 20% to household bills by 2030 if the system remains dependent on failing coal generators.

Frequently Asked Questions

How can I check if there is a power outage in my area?

Residents should visit their local electricity distributor’s website or use their outage tracker app. For Victorians, AusNet’s Outage Tracker provides real-time updates. You can also report faults to your distributor’s emergency line.

Who is eligible for the Prolonged Power Outage Payment?

Eligibility is for residential electricity account holders within the AusNet distribution network in Victoria who lost power for seven cumulative days between 7 and 10 January 2026 due to the severe weather. The account holder must apply via AusNet’s online form by 31 March 2026.

What is being done to prevent future outages?

Network companies like SA Power Networks are establishing taskforces to address issues like “insulator pollution,” where dirt and salt build-up on powerlines causes faults during dry, humid conditions. At a systemic level, experts and industry bodies are calling for accelerated investment in renewable generation, grid-scale batteries, and modernised transmission infrastructure to build a more resilient grid.