On 23 December 2024, AusNet Services submitted a cost pass through application seeking to recover the costs it has incurred as a result of the September 2024 storm in Victoria.
This weather event caused severe damage to AusNet Services' distribution network, including fallen and damaged powerlines, power poles and transformers due to fallen trees and branches. This, in turn, caused widespread power outages throughout AusNet’s distribution network affecting 180,000 customers, around 20% of AusNet Services’ customer base.
AusNet Services submitted that it had incurred total incremental costs of $18.7 million ($2021) across capital and operating expenditure. As a result, AusNet Services proposed to recover an increased revenue allowance of $11.4 million ($2021, smoothed). This included costs associated with emergency corrective works, vegetation management, and capital works, as well as Guaranteed Service Level (GSL) payments.
The AER has determined that the September 2024 storm met the definition of a natural disaster pass through event, and that the incremental costs meet the materiality threshold for a positive change event. The AER has approved a positive pass through amount of $12.9 million ($nominal, smoothed) to be recovered over the following two regulatory years:
- $6.3 million to be recovered in 2025–26
- $6.6 million to be recovered in 2026–27.