The AER has approved the 2013–14 proposed annual tariff variations and cost past throughs for the non Victorian gas distribution and transmission pipelines.
Gas pipeline service providers are required to notify the Australian Energy Regulator (AER) of their proposed annual tariff variations, consistent with their individual access arrangements. In April and May 2013 the AER received notifications to vary tariffs from the non-Victorian gas distribution and transmission businesses. The proposed tariffs apply from 1 July 2013.
We must approve a proposed tariff variation if it complies with the National Gas Rules and the price or revenue requirements set out in the applicable access arrangement.
We have approved the 2013–14 proposed annual tariff variations for the following non Victorian gas distribution and transmission pipelines:
Distribution – annual tariff variations
- ActewAGL gas distribution network
- Jemena Gas Networks (NSW) gas distribution network
- APT Allgas gas distribution networks
- Central Ranges Pipeline gas distribution network
- Envestra Wagga Wagga gas distribution network
- Envestra (Qld) gas distribution network
- Envestra (SA) gas distribution network
Transmission - annual tariff variations
- Amadeus Gas Pipeline
- Roma to Brisbane Pipeline
- Central Ranges Pipeline gas transmission network
- Dawson Valley Pipeline
The reasons for these decisions and the tariffs allowed for 2013–14 are provided in the AER’s Statement of Reasons.
Distribution – cost pass through
The current five-year access arrangements for ActewAGL and Jemena Gas Networks (NSW) (JGN) contain cost pass through mechanisms allowing approved reference tariffs for each network service provider to be adjusted in certain circumstances. Under these access arrangements, ActewAGL and JGN are entitled to submit cost pass through applications to the AER for assessment if an unexpected cost arises or, in some cases, if actual costs are different to the allowances included in the original access arrangements.
Each application is, in effect, a request to pass through to customers costs which were not included in the access arrangement. Not all cost pass throughs lead to higher prices for customers. Sometimes actual costs incurred are lower than allowances or pass throughs calculated using forecasts, meaning revenues must be returned to customers in a subsequent regulatory year. We are required to approve a cost pass through application provided that it satisfies the relevant requirements in the access arrangement.
We have approved cost pass-throughs for the following service providers. These pass throughs have been included in approved tariffs for 2013–14.