The Australian Energy Regulator (AER) today published its determination on AusNet Services' cost pass through application associated with storms that occurred on 9 and 10 June 2021, causing extensive damage to its network and disruption to supply.
We have determined that the June 2021 storms met the definition in the NER of a natural disaster pass through event and that AusNet Services has incurred materially higher costs as a result.
These increased costs include capital and operating expenditure required to restore supply to and repair the network, as well as Guaranteed Service Level (GSL) payments made to affected customers in accordance with the Electricity Distribution Code and the conditions of AusNet Services’ distribution licence.
Consequently, we have approved a cost pass through amount of $39.1 million ($nominal), which means AusNet Services may pass through this amount to consumers through higher network charges in the remaining years of the 2021–26 regulatory control period, as follows:
- $9.7 million to be recovered in 2022–23
- $9.8 million to be recovered in 2023–24
- $9.8 million to be recovered in 2024–25
- $9.8 million to be recovered in 2025–26
We estimate that the approved cost pass through amount will add approximately $7 ($nominal) per year to residential consumer bills, and $29 ($nominal) per year to small business consumer bills, over the remaining 4 years of AusNet Services’ 2021–26 regulatory control period.