We are calling for submissions on AusNet’s cost pass through application relating to distribution network costs incurred due to the Longwood and Walwa bushfires in January 2026. The bushfires impacted more than 240,000 hectares of land, around 900 km of power lines, 350 poles and more than 10,000 customers across northern and eastern Victoria.
AusNet has identified $40.7 million ($nominal) in incremental costs (capital and operating expenditure) relating to the event. This includes $25.0 million for replacement of damaged network assets and $15.7 million for emergency response, including attending to network incidents, vegetation management, and Guaranteed Service Level payments. AusNet proposes to recover incremental revenue of $16.1 million ($nominal, smoothed) in 2027-28.
We invite stakeholder submissions on AusNet’s cost pass through application by 9 July 2026. Please refer to the AusNet January 2026 cost pass through application webpage for instructions on how to make submissions.
Background
Cost pass through applications allow network businesses to recover efficient costs, not already accounted for in current revenue determinations, associated with natural disasters such as bushfires.
Our role
Under the National Electricity Rules, the AER is required to assess cost pass through applications from network businesses, including in relation to natural disaster events. In making this assessment, the AER uses the principle that consumers should pay no more than necessary for safe and reliable energy.