North west power operator faces calls for compensation over power outage

Approximately 10,000 customers were left without power for about three hours on the morning of May 20, the state's power distributor Ergon Energy confirmed, after the Diamantina Power Station's gas turbines were shut down by the plant's safety system.

APA Group which owns the Diamantina Power Station in Mount Isa confirmed it was in the process of undertaking a detailed review of the incident as the company faces calls to compensate businesses and residents affected by the outage.

"We apologise to our customers and the community for the inconvenience caused by the outage," a spokesman for APA said.

"On those occasions where interruptions to power occur, our teams are focused on ensuring power is returned safely and as quickly as possible."

Traeger MP Robbie Katter called on APA to provide compensation for affected businesses who reportedly lost revenue while the power station was down.

"It would be very difficult to determine the real direct costs on businesses, but there should at least be a pathway for some of these businesses so they've got some recourse," he said.

It comes after a power outage in March earlier this year again left 10,000 customers affected.

Mr Katter said mass power outages had become normalised in Mount Isa and its surrounding communities.

"A few years back, they (APA) made some upgrades that really improved its reliability," he said.

"But still clearly not enough ... I'm sure there's capacity to enhance that further."

According to APA, there have been four occasions in the past five years where the company's north west power supply assets have suffered system interruptions.

APA has contractual agreements in place with energy retailers such as Ergon Energy, large industrial and resource companies as well as small customers on gas distribution networks.

The company does not provide compensation to end users in circumstances where power supply is disrupted.