We are calling for submissions on TasNetworks’ cost pass through application relating to distribution network costs incurred due to the August-September 2024 storm event in Tasmania. The storm resulted in over 1,920 outages that affected more than 221,000 customers, many of whom experienced multiple interruptions. Some remote and complex outages took up to 23 days to be restored.
TasNetworks has identified $9.4 million ($nominal) in incremental costs (capital and operating expenditure) relating to the event. This includes $7.0 million of capital expenditure for asset replacement and $2.4 million of operating expenditure, largely increased labour costs for emergency response. TasNetworks proposes to recover incremental revenue of $4.6 million ($nominal, smoothed), over the final three years of the 2024–29.
This approach would result in an increase in residential customer bills of approximately $3 per annum and $10.70 per annum for small business customers over that period.
We invite stakeholder submissions on TasNetworks' cost pass through application by 22 April 2025. Please refer to the TasNetworks’ storm cost pass through application webpage for instructions on how to make submissions.
Background
A cost pass through application allows network businesses to recover efficient costs, not accounted for in current revenue determinations, associated with natural disasters such as 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.
Related content
TasNetworks – August-September 2024 storm distribution cost pass through application