The Australian Energy Regulator is seeking views on its draft decision on the access arrangement that will apply to ActewAGL Distribution’s gas network from 1 July 2016.
“The AER’s draft decision provides for reductions in revenues below those proposed by ActewAGL. This is because of a lower rate of return and reductions in forecast capital expenditure”, AER Chair Paula Conboy said.
“The AER’s role is to ensure that consumers pay no more than necessary for the safe and reliable delivery of gas by approving the overall revenue that is used to set ActewAGL’s network charges,” Ms. Conboy said.
“This means allowing sufficient revenue for ActewAGL to maintain its existing network, and to meet new growth and augment the network where necessary.”
The AER’s draft decision reflects an improved investment environment with significantly lower interest rates compared to previous years, which translates to lower financing costs necessary to attract efficient investment.
The AER is now seeking views from ActewAGL and other stakeholders. The AER will consider ActewAGL’s revised proposal and all stakeholder views provided before making its final decision in April 2016.