On 21 December 2022, Essential Energy submitted a cost pass through application to the AER, seeking to recover costs in relation to the widespread flooding which occurred throughout the North Coast of New South Wales during the period of late February and early March 2022. A period of severe weather caused significant and widespread flooding which severely impacted Essential Energy's electricity distribution network. Essential Energy sought an increase in allowed revenue of $3.8 million in 2023-24 to commence recovery of costs arising from the 2022 flood event.
On 30 March 2023, the AER released its determination on Essential Energy’s 2022 North Coast flooding cost pass through application. We are satisfied that the 2022 North Coast flooding met the definition of a natural disaster pass through event, and the materiality threshold to constitute a positive change event. The AER has approved a positive pass through amount of $2,197,283 ($nominal, smoothed) to be recovered in 2023-24.
We invited interested parties to make submissions on Essential Energy's 2022 flood cost pass through application by 10 February 2023. No submissions were received.