EnergyAustralia's revised cost pass through application (NSW Solar Bonus Scheme)

On 2 September 2010, the AER received a cost pass through application from EnergyAustralia relating to the implementation and administration of the NSW Solar Bonus Scheme. As the NSW Energy Minister was reviewing the scheme at the time of EnergyAustralia’s application, the AER decided on 8 October 2010 to extend the time for EnergyAustralia to submit its application until 45 business days after the Minister’s review of the scheme was published.

On 24 December 2010, the AER received a revised application from EnergyAustralia to pass through to its network customers the costs that have been incurred and are likely to be incurred as a result of the introduction of the NSW Solar Bonus Scheme during the 2009‑14 regulatory control period. EnergyAustralia has proposed a pass through amount of $35.2 million for this period. Based on this amount, EnergyAustralia seeks additional revenues of $26.2 million to be recovered from its distribution network customers during the 2009‑14 regulatory control period.

EnergyAustralia’s cost pass through application is required to be assessed under clause 6.6.1 of the transitional chapter 6 rules. The AER must determine whether a positive change event has occurred and, if so, it must then determine the approved pass through amount. In making this decision, the AER must take account of the factors in clause 6.6.1(j).

EnergyAustralia’s application is confined to costs associated with implementing and administering the scheme. Payments to complying generators under the scheme are recovered outside of the distribution determination through the annual pricing proposal. The AER expects to make its determination on EnergyAustralia’s application in March 2011. EnergyAustralia’s application is available on the AER’s website.

CountryEnergy and Integral Energy have not made applications to pass through the costs associated with the implementation and administration of the NSW Solar Bonus Scheme.

Invitation for submissions

Interested parties areinvited to make written submissions to the AER on EnergyAustralia’s revised application by close of business 28 January 2011. Submissions can be sent electronically to: AERInquiryaer [dot] gov [dot] au (AERInquiry[at]aer[dot]gov[dot]au).

Alternatively, submissions can be mailed to:

In making its assessment the AER will also take into account submissions received from interested parties in response to EnergyAustralia’s September 2010 interim application.

The AER prefers that all written submissions be publicly available to facilitate an informed and transparent consultative process. Submissions will be treated as public documents unless otherwise requested. Parties wishing to submit confidential information are asked to provide both confidential and non-confidential versions of their submission. All non-confidential submissions will be placed on the AER's website.