The Australian Energy Regulator (AER) today published its determination on Essential Energy’s cost pass through application to recover costs associated with new licence conditions which require it to strengthen its cyber and physical security across its distribution network (critical infrastructure licence conditions).
Essential Energy sought an increase in allowed revenue of $33.2 million to recover the costs arising from the critical infrastructure licence conditions.
We have approved a total of $30.6 million that Essential Energy can pass through to its customers over two years starting in 2022-23.
Residential customers are estimated to pay an extra $11 per year, and small business customers an extra $41 per year as a result.
We consider that our approved pass through amount reflects a necessary and efficient response for Essential Energy to comply with the new critical infrastructure licence conditions, so that consumers pay no more than necessary for safe and reliable energy.
Our determination is a reduction of $2.6 million from Essential Energy’s application as we were not satisfied that some costs (perimeter fencing, vegetation management, and contingency costs) were incremental to business as usual costs and therefore incurred solely as a consequence of the pass through event.