We are now consulting on AusNet Services’ Victorian Emergency Backstop Mechanism (VEBM) cost pass through application.
The VEBM requires all new and replacement solar systems connected to distribution networks to be able to be remotely interrupted or curtailed when directed by AEMO in a minimum system load event to maintain whole of system security.
AusNet Services expects to incur total costs of $29.64 million ($2021) across capital and operating expenditure to comply with the VEBM in the current regulatory period. AusNet is proposing an increased revenue allowance of approximately $16.1 million ($2021) to commence recovery of these costs in the current regulatory control period.
We invite stakeholders to assist the AER in making our determination by making submissions on AusNet’s cost pass through application by 27 March 2024.
Background
A cost pass through application allows network businesses to recover its efficient costs, not accounted for in its current revenue determination, associated with a pass through event. AusNet Services has submitted that the VEBM constitutes a service standard event under the cost pass through provisions of the National Electricity Rules (NER). Our role is to determine whether a positive change event has occurred, and if so to determine the amount of prudent and efficient costs that should be passed through, to ensure consumers pay no more than necessary.