On 10 March 2022, AusNet Services submitted a cost pass through application to the AER, seeking to recover costs in relation to the storm which occurred on 29 October 2021 in Victoria. This severe storm event caused extensive damage to AusNet Services’ electricity distribution network and interrupted supply to over 230,000 customers. AusNet Services is sought an increase in allowed revenue of $5.7 million ($2020–21, smoothed) to recover the costs arising from the October 2021 storm event. This includes costs associated with emergency corrective works, vegetation management, and capital (replacement) works.
On 22 June 2022, the AER released its determination on AusNet Services' October 2021 storm cost pass through application. We are satisfied that the October 2021 storm met the definition of a natural disaster pass through event, and that the materiality threshold to constitute a positive change event has been met. The AER has approved a positive pass through amount of $6,166,728 ($nominal, smoothed) to be recovered over the following three regulatory years:
- $2,050,676 to be recovered in 2023–24
- $2,055,572 to be recovered in 2024–25
- $2,060,480 to be recovered in 2025–26
We invited interested parties to make submissions on AusNet Services' October 2021 storm cost pass through application by 12 April 2022. Submissions have now closed