We are calling for submissions on Essential Energy’s cost pass through application for distribution network costs arising from the 2025 North Coast Weather Event. The event included Tropical Cyclone Alfred in March and the mid-North Coast floods in May. Between March and May 2025, severe rain, wind, coastal erosion and flooding caused significant damage to Essential Energy’s network in NSW.
Essential Energy has identified $19.9 million ($2024) in incremental capital and operating expenditure related to the event. As a result, Essential Energy proposes to recover $8.5 million in incremental revenue (nominal, smoothed) including $4.1 million in 2027–28 and $4.5 million in 2028–29.
We invite stakeholder submissions on Essential Energy’s cost pass through application by 29 October 2026. Please refer to the Essential Energy 2025 North Coast Weather Event 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 extreme weather 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 follows the principle that consumers should pay no more than necessary for safe and reliable energy.