Australian Gas Networks recently advised Consumers SA’s representatives on their SA Consumer Reference Group that:

“On 17 April 2019, we submitted to the AER an annual tariff variation notice for AGN's South Australian (SA) Gas Distribution Network. The tariff variation notice sought to increase 2019-20 network charges for AGN's (SA) users from 1 July 2019. It waspublished on the AER website today.

This is a key part of our process within the current Access Arrangement period which is submitted annually. The AER’s decision (2016/2017 – 2020/2021) outlined a price path which included a 23% (or $144 for residential customers) cut (in real terms) in year one, followed by 4% increases in years 2 through to 5. This price path was designed to match tariffs with growth in our asset base. At the time the AER expected this to result in increases of 6.3% per annum in years 2 through 5 (more information here).

We are proposing an increase in our tariffs of 5.1%, or $26 on average for residential customers. It is important to note this is only the distribution component of the increase, not the retail price.

This 5.1% increase is slightly less than that approved by the regulator in 2016 because:

· our approved price increases are updated each year for our financing costs which were lower than forecast in the AER’s decision; and

· inflation has been lower than forecast in the AER’s decision.”

AuthorRay Dennis