On 19 May 2025, Ausgrid submitted a cost pass through application seeking to recover costs it has incurred as a result of the January 2025 storm, which impacted its network area stretching from the Sydney CBD to the Upper Hunter. 

Ausgrid is proposing an increased revenue allowance of $14.4 million ($nominal, smoothed) to be recovered over the final three years of the current regulatory period (2024–29) as follows: $6.4 million in 2026–27; $6.4 million in 2027–28; and $1.7 million in 2028–29. 

We invite energy consumers and other interested parties to make submissions on Ausgrid’s cost pass through application by close of business 18 July 2025.

The AER’s role is to determine whether a positive change event as defined in the National Electricity Rules (NER) has occurred, and if so, what is the incremental revenue amount which should be passed through to network users. In order to best assist and inform the AER in making its determination, interested parties may wish to address the following questions:

• Does the January 2025 storm event meet the definition of a cost pass through event under clause 6.6.1(a1) of the NER and Ausgrid’s current revenue determination?
• Is the increase in costs that Ausgrid has incurred as a result of the event material?
• Are the costs identified by Ausgrid (including asset replacement, emergency response, and customer claim costs) incremental to costs already allowed for in its current revenue determination, and related solely to the occurrence of the pass through event?
• Are the operational costs incurred by Ausgrid in relation to the event, such as network restoration costs and costs paid to customers for spoiled food, efficient and prudent in the circumstances? 
• Are the decisions and actions Ausgrid has taken in relation to the event efficient? 
• Are there any other factors the AER should take into account in making its determination?

Submissions should be emailed Attention: Arek Gulbenkoglu, General Manager, Network Expenditure at costpassthroughsaer [dot] gov [dot] au (costpassthroughs[at]aer[dot]gov[dot]au)

Alternatively, you may mail submissions to:

Mr Arek Gulbenkoglu
General Manager
Australian Energy Regulator
GPO Box 520
Melbourne, Victoria, 3001

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.