The Australian Energy Regulator today released its final decisions on the access arrangements that will be used to set network charges for Victoria’s gas distribution and transmission pipelines for five years from 1 January 2018.
Our decisions for AusNet Services, Australian Gas Networks, Multinet Gas and APA’s Victorian Transmission system will result in reductions in annual gas bills of up to $28 in 2018 for residential customers and falls of up to $46 for small business customers. This will place downward pressure on customers’ gas bills at a time when other components of the gas bill, such as wholesale costs, may be increasing.
“These decisions allow for a substantial investment program, which is necessary to deliver safety, reliability and security of supply, while also managing changing demand.
“At a time when energy affordability is a serious concern for consumers, it is more important than ever that consumers have the confidence that we are carefully examining all aspects of distribution and network costs,” said AER board member Jim Cox.
Improved market conditions mean rates of return have fallen across the board, which has helped to balance the impact of this investment on prices.
“The Australian energy market is in transition and the AER’s work takes place in the context of significant technological, behavioural and systemic change. We work to make all Australian energy consumers better off now and in the future, and this decision is a key part of that work,” said Mr Cox.