On 2 February 2024, AusNet Services submitted a cost pass through application to the AER, seeking to recover costs incurred in response to the Victorian Government introducing the Victorian Emergency Backstop Mechanism (VEBM).

AusNet is proposing an increased revenue allowance of approximately $16.1 million ($2021) in the current regulatory control period.

We invited energy consumers and other interested parties to make submissions on AusNet’s VEBM pass through application by close of business 27 March 2024.

The AER’s role is to determine whether a positive change event as defined in the NER has occurred, and if so what is the incremental revenue amount which should be passed through to network users. In order to best assist and inform the AER in making its determination, interested parties were invited to address the following questions:

• Does the introduction of the VEBM by the Victorian Government meet the definition of a cost pass through event under clause 6.6.1(a1) of the NER?
• Is the increase in costs that AusNet Services has incurred or is likely to incur as a result of the event material?
• Are the costs identified by AusNet Services incremental to costs already allowed for in its current revenue determination, and related solely to the occurrence of the pass through event?
• Are the decisions and actions AusNet Services has taken in relation to the introduction of the VEBM efficient? 
• Are there any other factors the AER should take into account in making its determination?