On 20 June 2024, AusNet Services submitted a cost pass through application to the AER, seeking to recover distribution network costs incurred as a result of the 13 February 2024 storm in Victoria.
This weather event caused widespread damage to about 25% AusNet Services’ distribution network. At the peak of the 13 February 2024 storm, 255,000 customers experienced power outages at the same time, around 30% of AusNet Services’ customer base.
AusNet Services sought an increase in allowed revenue of $26.5 million ($2021, smoothed) to recover the costs arising from the February 2024 storm event. This included costs associated with emergency corrective works, vegetation management, and capital works, as well as Guaranteed Service Level (GSL) payments.
The AER has determined that the 13 February 2024 storm met the definition of a natural disaster pass through event, and that the incremental costs meet the materiality threshold for a positive change event. The AER has approved a positive pass through amount of $30.1 million ($nominal, smoothed) to be recovered over the following three regulatory years:
- $9.6 million to be recovered in 2025–26
- $10.0 million to be recovered in 2026–27
- $10.4 million to be recovered in 2027–28