The AER approves the 2015 Victorian gas network tariffs

The AER has approved the Victorian gas transmission and distribution tariffs, for the period 1 January to 31 December 2015. The AER received tariff variations for the APA GasNet transmission network and the four distribution networks; Australian Gas Networks (Victoria and Albury) (formerly Envestra), Multinet Gas and AusNet Services.

The 2015 tariff variations submitted by the network service providers comply with the requirements of their respective gas access arrangements for the period 2013–17.

In Victoria, distribution charges make up approximately a third of an average residential customer's gas bill, while transmission charges make up approximately seven per cent. The price change for the transmission component is expected to reduce the annual average residential bill by 0.04 per cent or $0.40. For the distribution component, the annual average retail bill is expected to increase modestly by:

  • 2.70 per cent for Australian Gas Networks (Albury)
  • 3.9 per cent for Multinet; and
  • 3.24 per cent for Ausnet Services.

For Australian Gas Networks (Victoria), however, prices will rise by 7.62 per cent. This increase is due to the recovery of the mains replacement cost pass through which the AER approved on 21 November 2014. This allows reference tariffs to be adjusted in certain circumstances, including if additional mains replacement occurs over the period. This was seen as appropriate to address gas safety concerns.

Sector: 
Issued date: 
1 December 2014
AER reference: 
AC 199/14