Eastern States Price Determinations – Gas Distribution Networks

Access Arrangements & Price Determinations

Dec 11
Eastern States Price Determinations – Gas Distribution Networks

The Australian Energy Regulator (AER) is currently undertaking price determinations for two gas distribution service providers in ACT and South Australia.

Both service providers submitted their regulatory proposals at the end of June/beginning of July 2015 and the AER published both draft decisions on 26 November 2015.  Interested parties can make submissions on the draft decisions to the AER by 6 January 2016.  The AER expects to release both final decisions by April 2016.

ActewAGL (2016-2021) – ACT

This draft decision reduced forecast operating expenditure by 7.5% and forecast capital expenditure by 34%. The forecast rate of return or cost of capital was also reduced from 7.15% (proposed by ActewAGL) to 6.09%. These key changes have reduced allowable revenue over the regulatory period by 19.9%.

Australian Gas Networks (2016-2021) – SA

This draft decision reduced forecast operating expenditure by 4% and forecast capital expenditure by 43.8%. The forecast rate of return or cost of capital was also reduced from 7.23% (proposed by AGN) to 6.02%. These key changes have reduced allowable revenue over the regulatory period by 18.2%.