On 10 March 2022, AusNet Services submitted a positive cost pass through application to the Australian Energy Regulator (AER), relating to additional network infrastructure costs incurred from storm damage on 29 October 2021 that resulted in 230,000 customers being off supply.
Under the National Electricity Rules, the AER is required to assess cost pass through applications in relation to natural disaster events. A cost pass through allows network businesses to recover its efficient costs, not accounted for in its current revenue determination, associated with natural disasters such as severe storms.
Network customers ultimately pay for energy infrastructure that needs to be restored and rebuilt after a storm and the AER’s role is to carefully assess how businesses propose their spending. In making this assessment, the AER uses the principle that consumers should pay no more than necessary for safe and reliable energy.
AusNet Services is seeking to recover $5.7 million ($2021, smoothed) in additional revenue, which it claims will result in an increase of $2.30 to the average customer’s bill, each year from July 2023 to June 2026.
AusNet Services is the electricity distribution network service provider for customers in the northern and eastern Melbourne metropolitan area and the eastern half of rural Victoria.
Invitation for submissions
We invite energy consumers and other interested parties to make submissions on AusNet Services’ October 2021 storms cost pass through application by Tuesday, 12 April 2022.
Submissions should be emailed: Attention: Arek Gulbenkoglu, General Manager, Network Expenditure at AERInquiry
aer [dot] gov [dot] au
Alternatively, written submissions can be sent to:
Mr Arek Gulbenkoglu
General Manager, Network Expenditure
Australian Energy Regulator
GPO Box 3131
Canberra, ACT, 2601
We will take into account submissions in deciding whether or not to grant AusNet Services’ application.
We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.
We request parties wishing to submit confidential information:
- clearly identify the information that is the subject of the confidentiality claim
- provide a non-confidential version of the submission in a form suitable for publication.