Cost Pass-through Applications

The Queensland Competition Authority's 2005 Final Determination: Regulation of Elecricity Distribution incorporated a number of cost pass-through mechanisms aimed at providing electricity distributors with a more flexible regulatory environment and greater investment certainty.

Some of these cost pass-through mechanisms addressed specific areas of uncertainty about the level of capital expenditure that might be necessary for the distributors to invest in their networks by allowing future capital expenditure requirements to be considered and, if necessary, incorporated into the revenue requirements within the regulatory period.

The Authority has also retained a general pass-through mechanism to provide for the consideration of any costs associated with unanticipated major changes in the operating environment of the distributors.