The AER has published its draft decision on APA’s proposed gas access arrangement for the Victorian Transmission System.
We have approved key investments in the Western Outer Ring Main and South West Pipeline. Our draft decision confirms our view that expansion of capacity on the South West Pipeline is an appropriate response to the short term risk of supply shortfalls in Winter 2023.
APA’s proposal, which covers the period 1 January 2023 to 31 December 2027, would have allowed it to set gas transmission charges resulting in the recovery of an expected $644.1 million ($ nominal, smoothed) in revenues from consumers from 1 January 2023 to 31 December 2027. The draft decision reduces this by $32.6 million (5.1%) to $611.5 million.
This draft decision marks the mid-point of the AER’s consultation on APA’s proposal. Final decision outcomes are likely to differ. APA will now have until 10 August 2022 to respond to the draft decision in a revised proposal.
Stakeholders are invited to attend an online forum on the draft decision on Monday, 25 July 2022. Submissions on both the draft decision and revised proposal are invited by 6 September 2022.