PIAC made a submission to the Australian Energy Regulator’s (AER) consultation on Essential Energy Cost Pass Through Application – 2019-20 Bushfires.
We supported allowing Essential Energy to recover efficient costs incurred as a result of the bushfires that were not provided for in the revenue allowance, and the proposal that cost recovery from consumers be smoothed across two years. We expect the AER to determine the efficient and prudent amount to allow and the specifics of how to smooth the recovery.
In addition, we cautioned Essential Energy’s application is a reminder that damage to network infrastructure from extreme weather events is likely to increase and that the impact of extreme weather events needs to be considered and planned for across a number of regulated processes.
