We are seeking submissions on Evoenergy’s cost pass through application to recover incremental costs arising from the Australian Energy Market Commission’s (AEMC’s) Unlocking consumer energy resource (CER) benefits through flexible trading arrangements (FTA) rule change made on 15 August 2024.
Evoenergy expects to incur $4.5 million (nominal) in incremental costs across 2025–26 and 2026–27 to undertake system and business process changes to its billing and market systems platform to implement flexible trading arrangements and comply with consequential updates to retail market and business-to-business procedures. Evoenergy has proposed an increased revenue allowance of approximately $1.5 million (nominal, smoothed) to commence recovery of these costs in 2026–27.
We invite stakeholder submissions on Evoenergy’s cost pass through application by 2 March 2026. Submissions, and requests to make a submission on the cost pass through application via alternative methods, should be emailed to costpassthroughs
aer [dot] gov [dot] au (costpassthroughs[at]aer[dot]gov[dot]au). Please refer to Evoenergy - Cost pass through application - Flexible trading arrangement rule change for further information.
Background
A cost pass through application allows network businesses to recover efficient costs, not accounted for in current revenue determinations, associated with certain specified events such as changes in regulatory obligations or service standards.
Under the National Electricity Rules, the AER is required to assess cost pass through applications from network businesses where such events result in a material change in the cost of providing services. In making our assessments, the AER has regard to relevant factors in the National Electricity Rules and seeks to ensure that consumers pay no more than necessary for safe and reliable energy.