On 24 February 2011, the Australian Energy Regulator (AER) received an application from Powercor for the pass through of costs resulting from changes in the compliance framework in response to the Victorian Bushfire Royal Commission (VBRC) recommendations. Powercor proposed a positive pass through amount of $103.65 million be passed through to distribution network users during the 2011-15 regulatory control period.
On 13 May 2011, the AER decided not to approve Powercor’s pass through application. The AER considers that the events nominated by Powercor in its pass through application do not satisfy the pass through requirements under clause 6.6.1 of the National Electricity Rules. The AER notes however that Powercor may make further applications based on any administrative action that ESV may take in regard to the approval of plans prepared in response to actions taken to implement the recommendations from the VBRC.