South Australian distribution network business SA Power Networks has submitted a cost pass through application to the Australian Energy Regulator (AER) seeking to recover an additional $6.8 million in revenue over the last two years of its 2020-25 regulatory control period to pay for new obligations set by the South Australian Officer of the Technical Regulator.
The Technical Regulator Emergency Standards – Voltage Management and Under Frequency Load Shedding requires SA Power Networks to address power system security issues resulting from the continued high take-up of rooftop solar on the South Australian distribution network.
The additional revenue sought in the application would increase a typical South Australian residential customer's power bill by around $2.20 each year over the remainder of the 2020–25 regulatory period.
Under the National Electricity Rules, the AER is required to assess cost pass through applications in relation to regulatory change events. A cost pass through allows network businesses to recover its efficient costs, not accounted for in its current revenue determination. In making this assessment, the AER uses the principle that consumers should pay no more than necessary for safe and reliable energy. The AER is calling for submissions to assist in its determination.
Invitation for submissions
We invite energy consumers and other interested parties to make submissions on SA Power Network’s cost pass through application by 12 May 2022.