On 16 December 2021, ElectraNet submitted a positive cost pass through application to the Australian Energy Regulator (AER) under clause 6A.7.3 of the National Electricity Rules (NER). The application relates to the additional insurance premium costs that ElectraNet incurred in the 2021–22 financial year.
Under the NER, the AER is required to assess cost pass through applications in relation to insurance 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.
ElectraNet is seeking to recover an additional $3.38 million in the 2022–23 financial year due to additional insurance premium costs incurred in the 2021–22 financial year. ElectraNet estimates that the average bill impact to households will be a one-off cost per customer of $1.50, or 0.1%.
ElectraNet is the electricity transmission network service provider in South Australia connecting generators with distribution networks as well as large direct-connect industrial customers.
Invitation for submissions
We invite energy consumers and other interested parties to make submissions on ElectraNet’s 2021–22 insurance costs pass through application by close of business Monday, 31 January 2022.
Submissions should be emailed to AERInquiry@aer.gov.au.
Alternatively, written submissions can be sent to:
Australian Energy Regulator
GPO Box 3131
Canberra, ACT, 2601
We will take into account submissions in deciding whether or not to grant ElectraNet's application.
We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.
We request parties wishing to submit confidential information:
- clearly identify the information that is the subject of the confidentiality claim
- provide a non-confidential version of the submission in a form suitable for publication.