On 22 November 2021, AusNet Services submitted a cost pass through application to the AER, seeking to recover costs in relation to the 2020–21 storms in Victoria. The storms, which occurred on 9 and 10 June 2021, caused extensive damage to AusNet Services’ electricity distribution network and interrupted supply to over 230,000 customers. AusNet Services sought an increase in allowed revenue of $36.2 million to recover the costs arising from the 2020–21 storms. This includes costs associated with emergency response, vegetation management, GSL payments, and capital (replacement) works.
On the 14 January 2022, AusNet Services submitted a revised cost pass through amount of $36.5 million, which is an increase of $311,160 in GSL payments over its original application.
On 16 March 2022, the AER released its determination on AusNet Services' cost pass through application. We are satisfied that the June 2021 storms meet the definition of a natural disaster pass through event, and that the materiality threshold to constitute a positive change event has been met. The AER approved a positive pass through amount of $39,098,155 ($nominal, smoothed) to be recovered over the following four regulatory years:
- $9,739,601 to be recovered in 2022–23
- $9,762,856 to be recovered in 2023–24
- $9,786,166 to be recovered in 2024–25
- $9,809,532 to be recovered in 2025–26.
Consultation
We invited interested parties to make submissions on AusNet Services' cost pass through application by 21 December 2021. Submissions have now closed.