AER decision on AusNet Services' transmission tower collapse cost pass through application

The Australian Energy Regulator (AER) has released its decision on AusNet Services’ transmission tower collapse cost pass through application.

AusNet Services proposed a pass through amount of $2.3 million for costs it incurred because of a severe weather event on 31 January 2020. The storm caused the failure of six towers and severe damage to a seventh tower on the dual circuit Moorabool–Mortlake and Moorabool–Haunted Gully transmission lines in south western Victoria. 

The AER is required to assess cost pass through applications in relation to natural disaster events. A cost pass through allows a network business to recover its efficient costs, not accounted for in its current revenue determination, associated with natural disasters such as severe weather events.

The AER determined that AusNet Services’ application satisfies the definition of a natural disaster event as defined in AusNet Services’ 2017–22 revenue determination. The AER has approved the pass through amount of $2.3 million, which will be passed through to AusNet Services customers in 2021–22.

The pass through will increase the average residential annual bill in Victoria by about 40 cents in 2021–22. 

Issued date: 
29 September 2020
AER reference: 
AC 131/20
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