The AER’s decision is to approve a cost pass through amount of $3.67 million ($nominal) to be recovered in 2027–28.
The AER has determined that the Security of Critical Infrastructure Act (SoCI Act) reforms met the definition of a regulatory change pass through event, and that Powerlink incurred materially higher costs as a result.
The increased costs incurred by Powerlink include capital and operating expenditure required for Powerlink to undertake physical security uplift activities and related changes to comply with SoCI Act obligations, which we consider to be prudent and efficient in the circumstances. However, we have excluded certain capex costs that form part of Powerlink’s broader security uplift program proposed for the 2027–32 regulatory period. These costs can be assessed through the broader 2027–32 revenue determination process, reducing the pass through amount by $1.8 million ($nominal).
On average, the estimated bill impact of this cost pass through for Powerlink customers is an increase of approximately $1 to the annual bill for both residential customers and small business customers in 2027–28.
Background
This event relates to the SoCI Act reforms, which introduce new obligations for responsible entities under the security of critical infrastructure legislative framework and require Powerlink to undertake physical security uplift activities and related changes to comply with those obligations.
Under the National Electricity Rules, the AER is required to assess cost pass through applications in relation to regulatory change 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.