The AER has published its draft decisions on proposed gas access arrangements for Victorian gas distribution networks AusNet Gas Services, Australian Gas Networks and Multinet Gas Networks for the period 1 July 2023 to 30 June 2028.
Our draft decisions on expected revenues for the 2023–28 period are ($nominal):
- AusNet: $1,205.2 million, or $55.5 million (4.4%) less than proposed
- AGN: $1,298.3 million, or $42.3 million (3.4%) more than proposed
- MGN: $1,101.4 million, or $8.9 million (0.8%) more than proposed.
We have carefully reviewed the proposals and our draft decisions ensure consumers pay no more than necessary for their gas supply. Movements in market variables such as interest rates, bond rates and expected inflation are currently acting to increase regulated revenues, and for AGN and MGN these have resulted in higher draft decision outcomes than reflected in initial proposals. Updates for these movement are a standard part of our decision making process.
AusNet, AGN and MGN now have the opportunity to respond to our draft decisions in revised proposals to be submitted by 24 January 2023. Interested stakeholders are invited to make submissions on both our draft decisions and the revised proposals (once submitted) by 23 February 2023. We are particularly interested in stakeholders’ views on our draft decision approach to accelerated depreciation and the recovery of gas meter abolishment costs, as well as our preferred revenue smoothing approach, given the high level of interest to date on these matters.