The Australian Energy Regulator (AER) today published its determinations on three cost pass through applications submitted by SA Power Networks, ElectraNet and Murraylink.
Our decision is to approve the following pass through amounts:
- a positive pass through amount for SA Power Networks of $11.2 million, to recover costs incurred due to flooding of the South Australian section of the River Murray between November 2022 and February 2023
- a negative pass through amount for ElectraNet of $6.15 million, to reflect an expected reduction in the cost of providing inertia system services in 2024–25
- a negative pass through amount for Murrraylink of $1.0 million, to account for lower than forecast connection charges in 2022-23.
Background
The National Electricity Rules recognise that distribution and transmission network service providers may apply to adjust allowed revenues within a regulatory period to account for changes in costs incurred during a regulatory control period if predefined events occur. Our role is to determine whether a positive or negative 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.