On 7 June 2024 Powercor submitted a cost pass through application to the AER, seeking to recover costs incurred in response to the Victorian Government introducing the Victorian Emergency Backstop Mechanism (VEBM).
The VEBM requires all new and replacement solar systems connected to distribution networks to be able to be remotely interrupted or curtailed when directed by AEMO in a minimum system load event to maintain whole of system security.
Our decision is to approve a positive pass through amount of $11.5 million (nominal, smoothed). This is a decrease of $0.1 million (nominal, smoothed) from Powercor’s proposed pass through amount. Powercor will be able to recover this amount in the 2025–26 regulatory year.