Issue date
AER reference
AC 76/22

The Australian Energy Regulator (AER) has made a final revenue determination on APT Petroleum Pipelines Pty Limited’s (APTPPL) 2022–27 gas access arrangement period for the Roma to Brisbane Pipeline (RBP) in Queensland.

The decision allows APTPPL to set gas network charges for the RBP which are expected to result in the recovery of $240.7 million from its consumers over the five-year access arrangement period starting 1 July 2022.

This decision is $27.1 million (12.7%) higher than our draft decision reflecting changes in forecast gas demand, operating expenditure, and the latest market data. In this case, base interest rates and estimates of inflation have increased between our draft decision and now, leading to a higher revenue allowance than our draft decision.

The expected revenue APTPPL may recover from consumers comprises 3.4% of a typical bill, for both residential and small business consumers.

The estimated consumer bill impacts are indicative only. We do not set network charges for each consumer. The transmission network cost is one of a number of components of the overall retail gas bill that end‑consumers pay. We estimate that the final decision will:

  • increase retail prices by $2 (0.3%) for residential consumers and $10 (0.3%) for small business consumers, in the first year of the 2022–27 period;
  • increase retail prices by $1 (0.1%) for residential consumers and $4 (0.1%) for small business consumers, in each of the next four years of the 2022–27 period.

Residential and small business consumer bills are estimated to be $4 (0.7%) and $26 (0.7%) higher, respectively, by the end of the 2022–27 period.

High quality consumer engagement is essential to ensuring that proposals are driven by consumer preferences. We consider there is opportunity for APTPPL’s parent company, the APA Group, to invest more in pre-lodgement engagement to further improve the consumer engagement approach and in turn, help to shape future regulatory proposals.