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.
Powercor expects to incur total costs of $19.7 million ($2021) across capital and operating expenditure. As a result, Powercor is proposing an increase in its revenue allowance of approximately $12.7 million ($2021) in the current regulatory control period.