On 6 December 2024, Essential Energy submitted its contingent project application to us seeking an increase to its revenue to fund its bushfire risk reclassification contingent project in accordance with clause 6.6A.2 of the NER. This bushfire risk reclassification contingent project application relates to widening vegetation corridors and installing some stand-alone power systems (SAPS) in newly identified high bushfire risk areas.
We invite stakeholders to make submissions on Essential Energy's contingent project application. Submissions close on Wednesday, 15 January 2025.
Background
Essential Energy’s bushfire risk reclassification contingent project involves undertaking works in newly identified bushfire risk areas, such that vegetation corridors are widened to comply with jurisdictional regulatory obligations for these bushfire priority zones. The project also includes the removal of some powerlines and the installation of SAPS where it is more cost efficient, and where customers agree to it.
The contingent project relates to the NSW Bushfires Coronial Inquiry that made recommendations in March 2024 regarding Essential Energy’s revision of fire risk modelling. Essential Energy’s revised fire risk modelling resulted in a material shift in where areas of highest bushfire risk exist on its network. The contingent project seeks to operationalise these revised bushfire priority zones through asset management and vegetation management works.
Our role is to review the prudency and efficiency of the proposed costs within the application to ensure consumers pay no more than necessary. We have 40 business days from receiving the application or responses to information requests to make our decision. We expect to make a decision on the application in the coming months.