We are calling for submissions on Energy Queensland’s (Energex and Ergon Energy) cost pass through applications relating to distribution network costs incurred due to several severe weather events across Queensland between 13 December 2023 and 25 January 2024. These include Cyclones Jasper and Kirrily in North Queensland, and a series of severe storms in South East Queensland (SEQ). These events resulted in approximately 240,000 customers being off supply in total — 50,000 due to Cyclone Jasper, 60,000 due to Cyclone Kirrily, and 130,000 due to the SEQ storms.
Energy Queensland has proposed to recover the following pass through amounts for each event in 2025–26, the first year of the next regulatory period:
- Energex incurred $28.5 million ($2023–24) in incremental costs (capital and operating expenditure) due to the SEQ storms and has proposed to recover $11.1 million ($nominal, smoothed) in 2025–26. This would add approximately $4 to residential and $11 to small business customers' network charges on average in that year.
- Ergon Energy incurred $23.2 million ($2023–24) in incremental costs (capital and operating expenditure) due to Cyclone Jasper and has proposed to recover $22.1 million ($nominal, smoothed) in 2025–26. This would add approximately $13 to residential and $28 to small business customers' network charges on average in that year.
- Ergon Energy incurred $13.7 million ($2023–24) in incremental costs (capital and operating expenditure) due to Cyclone Kirrily and has proposed to recover $13.6 million ($nominal, smoothed) in 2025–26. This will add approximately $8 to residential and $17 to small business customers' network charges on average in that year.
We invite stakeholders to assist the AER in making our determinations by making a submission on Energy Queensland’s cost pass through applications by Friday, 24 January 2025.
Submissions, and requests to make a submission on the cost pass through applications via alternative methods, should be emailed to AERInquiry
aer [dot] gov [dot] au (AERInquiry[at]aer[dot]gov[dot]au).
Please refer to the cost pass though application webpages for further information.
- Cyclone Kirrily cost pass though application
- Cyclone Jasper cost pass though application
- SEQ storms cost pass though application
Background
A cost pass through application allows network businesses to recover its efficient costs, not already accounted for in its current revenue determination, associated with natural disasters such as cyclones and severe storms.
Our role
Under the National Electricity Rules, the AER is required to assess cost pass through applications from network businesses, including in relation to natural disaster events. In making this assessment, the AER uses the principle that consumers should pay no more than necessary for safe and reliable energy.