The AER has today released the final decision on Evoenergy’s gas access arrangement for the 2026-31 period.
Distribution gas networks are required to submit access arrangement proposals outlining the services they will provide, the tariffs for those services, and other terms and conditions on which the services will be provided to their customers over the next 5 years.
AER Board Member Lynne Gallagher said the decision balances the need for continued investment in safe and reliable services during the transition, while limiting unnecessary price increases.
“Our decision recognises that, as the ACT transitions to full electrification and gas use declines, Evoenergy still needs a level of efficient investment in its network. But it’s critical that customers who remain on the network pay no more than necessary for a safe, reliable and secure supply, both now and in the future,” said Ms Gallagher.
The final decision for Evoenergy allows for $412.8 million ($nominal, smoothed) in total revenue to be recovered from consumers over the 2026-31 period. This total revenue is $42.2 million (9.3%) lower than Evoenergy’s revised proposal ($nominal).
Compared with the current period, it is $8.6 million ($2025-26, 2.3%) higher (after accounting for the impact of inflation), primarily driven by a range of factors including a higher allowed rate of return and increased regulatory depreciation.
This increase is partially offset by a lower forecast operating expenditure which has decreased by $9.5 million (5.2%) compared with the current period.
Under this final decision, Evoenergy’s tariffs will rise by an average of 8.2% a year in nominal terms over 2026–31, reflecting both higher revenue and lower demand.
We estimate this will result in the distribution component of an average annual gas bill increasing by $43 for residential customers and $436 for small business customers ($nominal).
With the ACT gas network expected to be decommissioned by 2045, the asset lives for Evoenergy’s pipelines in our final decision have been shortened to align with the ACT Government’s net zero transition policy.
This provides Evoenergy with $30 million accelerated depreciation – that is, when costs are brought forward to be shared by customers currently on the gas network rather than the smaller future customer base – to recover efficient investment in its network.
However, Ms Gallagher acknowledged the limitations of accelerated depreciation, encouraging open discussion between consumers, network businesses and governments about who should pay for the costs of a declining gas network, and when and how these costs are best shared.
“Accelerated depreciation is a limited tool and does not resolve the challenges of declining gas demand on its own. As long-term demand for Evoenergy’s network declines, we need to exercise caution by retaining flexibility in the way we apply further accelerated depreciation to limit price impacts on consumers,” said Ms Gallagher.
Today’s decision will come into effect from 1 July 2026.