The Australian Energy Regulator (AER) today published its determination on ElectraNet’s cost pass through application to recover costs related to increased insurance premiums incurred for the 2022–23 regulatory year.
Our decision is to approve ElectraNet’s proposed increase in allowed revenue of $5.3 million. This will allow ElectraNet to recover the increase in its forecast insurance premium costs from transmission network users in the 2023–24 year.
The National Electricity Rules (NER) recognise the risk that insurance premiums may increase unexpectedly during a regulatory control period. In circumstances where these increases are material, the NER allows for ElectraNet to recover its actual premium costs. We are satisfied the costs are a material increase.
The estimated bill impact of this cost pass through for residential customers in South Australia is an increase of approximately $3 in 2023–24.