We are calling for submissions on Ausgrid’s cost pass through application relating to distribution network costs incurred due to the January 2025 storm event. The storm resulted in power outages affecting more than 210,000 customers, with the heaviest impact in Northern Sydney, Port Stephens, the Sydney Basin, and the Central Coast.
Ausgrid has identified $19.6 million ($2023-24) in incremental costs (capital and operating expenditure) relating to the event. This includes $9.3 million of capital expenditure for asset replacement, and $10.2 million of operating expenditure for network repair and restoration, removal of fallen trees and customer claims. Ausgrid proposes to recover incremental revenue of $14.4 million ($nominal, smoothed), over the final three years of the 2024–29 regulatory control period.
We invite stakeholder submissions on Ausgrid’s cost pass through application by 18 July 2025. 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 the Ausgrid’s distribution cost pass through application – January 2025 storm webpage 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 natural disasters such as severe storm events.
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.