Michelle Slater
AusNet Services customers could be slugged extra coin on their power bills from next year to recoup the cost of damage to powerlines caused by the savage June 9 and 10 storms.
The severe storm and floods plunged 230,000 AusNet customers into blackouts with some off supply for weeks due to widespread network damage.
AusNet provides electricity in the northern and eastern Melbourne metropolitan area and the eastern half of rural Victoria.
AusNet estimates the damage would cost $36.2 million, resulting in bill increases of $6.35 for households and $58.57 for small businesses each year from July 2022 to June 2026.
A part of this $36.2 million in damages also includes costs AusNet incurred through having to make guaranteed service level payments to impacted customers as required by a ministerial order.
AusNet has asked the Australian Energy Regulator (AER) for a positive cost pass through to help recover its damages.
Network customers ultimately pay for energy infrastructure that needs to be restored and rebuilt after a storm.
But the AER will assess AusNet’s application on the principle that consumers should pay no more than necessary for safe and reliable energy.
Member for Morwell Russell Northe said it was “grossly unfair” for customers to bear the costs after sitting through days in darkness after this year’s blackouts.
Mr Northe suggested the repair bill should instead be covered under a recently-announced $73 million state government fund to help with ongoing storm recovery from June.
He also pointed to a $750 million Powerline Bushfire Safety Program formed out recommendations handed-down from a Royal Commission into the 2009 bushfires.
“Why can’t the works be undertaken through these particular programs rather than impost the cost on households and businesses?” Mr Northe said.
“This year there were customers without power for days and weeks and now these people will be asked to pay for upgrades, after they have already borne enough inconvenience.
“I’d be disappointed if this was approved by the regulator.”
The AER is inviting customers to provide feedback on the AusNet cost pass through application by Tuesday, December 21.
The AER will take submissions into account in deciding whether or not to grant AusNet Services’ application.
To make a submission, email AERInquiry@aer.gov.au.