On 28 October 2024 Energex submitted a cost pass through application to the AER, seeking to recover costs incurred as a result of severe storms experienced in South East Queensland (SEQ) over an 11 day period from December 2023 to January 2024.
This severe weather event caused extensive damage to Energex’s network and interrupted supply to approximately 130,000 customers.
Energex submitted that it had incurred total incremental costs of $28.5 million ($2023–24) across capital and operating expenditure. As a result, Energex proposed an increase in its revenue allowance of approximately $11.1 million ($nominal, smoothed) to be recovered in 2025–26, the first year of its next regulatory control period.
The AER determined that the South East Queensland storms met the definition of a natural disaster pass through event, and that the incremental costs meet the materiality threshold for a positive change event. We consider the approved pass through amount should be recovered by Energex in 2025–26 and 2026–27.