Endeavour Energy - Cost pass through for the 2019-20 bushfire natural disaster

Sector: 
Segment: 
Status: 
Commencement date: 
31 August 2020
Effective date: 
1 July 2021
Service provider/Asset: 
Contact: 
AER General Inquiries AERInquiry@aer.gov.au
AER reference: 
AER201074

Overview

On 31 August 2020, Endeavour Energy submitted a cost pass through application seeking to recover costs in relation to the 2019-20 bushfires. The bushfires impacted 44 per cent of Endeavour Energy’s network area, causing significant damage to parts of the network and interrupting supply to over 55,000 customers. Endeavour Energy submits their emergency restoration and subsequent response efforts, which include activities performed during and after the bushfire event, have a material impact to the cost of providing direct control services and constitutes a natural disaster pass through event. To recover these costs Endeavour Energy proposes a positive pass through amount of $31.3 million ($2019-20).

The AER determined that a cost pass through is appropriate and meets the National Electricity Rule requirements.The AER approved a pass through amount of $26.7 million ($2019-20) which is lower than the $31.3 million ($2019-20) proposed by Endeavour Energy. The resulting revenue impact totals $25.8 million ($ nominal, smoothed) for the 2019–24 regulatory control period to be recovered over the following three regulatory years accordingly:

  • $8.4 million ($nominal) to be recovered in 2021–22
  • $8.6 million ($nominal) to be recovered in 2022–23, and
  • $8.8 million ($nominal) to be recovered in 2023–24.

Consultation

Interested parties were invited to make submissions on Endeavour Energy's 2019-20 bushfires pass through application. Submissions have now close. We received two submissions