AER Determination - Powercor cost pass through - increase to minimum wood pole interventions - August 2022

On 29 August 2022, the AER released its decision on Powercor’s minimum wood poles interventions cost pass through application.

Our decision is to approve Powercor’s proposed pass through amount of $112.8 million (2020–21). This will allow Powercor to replace or reinforce 11,060 wood poles over and above what we have already approved as part of Powercor’s 2021–26 revenue determination.

The approved pass through amount will be recovered as follows over the next three regulatory years:

• $2,271,360 ($ nominal) to be recovered in 2023–24
• $4,636,519 ($ nominal) to be recovered in 2024–25
• $7,098,389 ($ nominal) to be recovered in 2025–26.

We also approve Powercor’s proposed adjustments to its service level targets for the Customer Service Incentive Scheme because of the higher number of planned outages that the additional pole interventions will require.

The additional wood pole replacements and reinforcements will improve safety and help to reduce the risk of bushfires arising from pole failures.