Consultation now open on AusNet Services’ storms cost pass through 2020–21 application

On 22 November 2021, AusNet Services submitted a positive cost pass through application to the Australian Energy Regulator (AER) under clause 6.6.1(a1)(5) of the National Electricity Rules (NER). The application relates to the additional costs that AusNet Services incurred as a consequence of storms that occurred on 9 and 10 June 2021, causing damage to its network infrastructure that resulted in 230,000 customers being off supply.

Under the NER, 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' estimated $36.2 million additional spending caused by the storms, will result in bill increases of $6.35 for households and $58.57 for small businesses, each year from July 2022 to June 2026.

The estimated amount of $36.2 million includes the costs AusNet Services incurred as a direct result of a Ministerial Order that requires it to make GSL payments to customers affected by the storms.

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’ 2020–21 storms cost pass through application by Tuesday, 21 December 2021.

Submissions should be emailed: AERInquiryaer [dot] gov [dot] au (AERInquiry[at]aer[dot]gov[dot]au)

Alternatively, written submissions can be sent to:

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.