The Australian Energy Regulator (AER) is seeking submissions on cost pass through applications received from Endeavour Energy, Essential Energy and Ausgrid. These applications relate to incremental distribution network costs arising from the varied licence conditions due to the NSW Emergency Backstop Mechanism order.
This order requires the distribution network service providers (DNSPs) to enable remote solar curtailment during Minimum System Load events, update connection and customer processes, support flexible export limits, meet testing and reporting requirements, and integrate with the NSW Consumer Energy Resources Installer Portal.
The DNSP’s have identified total incremental costs (capital and operating expenditure) as follows:
- Endeavour Energy - $35.9 million (real, $2024)
- Essential Energy - $47.0 million (real, $2024)
- Ausgrid - $45.3 million (real, $2026)
Under the National Electricity Rules (NER), the AER is required to assess cost pass through applications in relation to service standard events. The AER’s role is to determine whether a positive or negative change event has occurred and, if so, to determine the amount of prudent and efficient costs that should be passed through to ensure consumers pay no more than necessary.
Have your say
We invite stakeholders to provide written submissions on the cost pass through applications by 21 August 2026. Feedback can be provided on one or more of the applications.
Submissions, and requests to make a submission via alternative methods, should be emailed to costpassthroughs
aer [dot] gov [dot] au (costpassthroughs[at]aer[dot]gov[dot]au).
If we do not receive any submissions from stakeholders on a cost pass through application, after reviewing the application and supporting information we may not make a determination under clause 6.6.1(d) of the NER. If we do not make a determination then, in accordance with clause 6.6.1(e) of the NER, the amount proposed in the application is taken to be the approved pass through amount.