The AER has published its 2024 Gas transmission network performance supplementary report. The supplementary report is published alongside the 2024 Electricity and gas networks performance report, which was published in September 2024.
The supplementary report presents analyses of the key outcomes and trends in the operational and financial performance of three gas transmission pipelines regulated by the AER – Amadeus Gas Pipeline, Roma Brisbane Pipeline and Victorian Transmission System. Data included in the report and supporting tables relates to up to 30 June 2023 for the Amadeus and Roma Brisbane pipelines and up to 31 December 2023 for the Victorian Transmission System.
The analysis found that:
- Demand for gas decreased by 18% compared to 2022. The decrease in gas demand was driven by warmer winter weather in Victoria, decommissioning of a large customer in Queensland and supply problems from the Blacktip field.
- Revenue for the Victorian Transmission System declined by 16% and was 1.5% above forecast levels. Lower revenue in 2023 was driven by lower demand.
- Return on assets for the Victorian Transmission System decreased to 1.8% and was 0.8 percentage points lower than the allowance of 2.6%. The Victorian Transmission System fell short of the allowed return on assets due to higher than forecast operational expenditure.
- Return on regulated equity decreased to 11.6% and was 7.9 percentage points higher than the allowance of 3.7%. Pipeline businesses have increased their return on regulated equity by decreasing the amount of equity they hold and by earning more revenue than forecast. Higher inflation than forecast also contributed to higher returns on regulated equity.