Australian Gas Networks to Cut Network Charges by 11%
Australian Gas Networks (AGN) on Thursday announced it will reduce gas network charges by 11 percent from January 1, 2018.
The moves will result in reduced household gas bills for company’s approximately 650,000 customers in households and small businesses segments. The company released its draft plan setting out its pricing proposal for its natural gas distribution networks for the five-year period from 2018 onwards.
AGN is required to submit its pricing proposal to the Australian Energy Regulator (AER) on 1 January 2017, for its review and ultimate approval.
“We consider it an important part of our stakeholder engagement program to ensure that anyone connected to our natural gas network has an opportunity to contribute to our business plan,” AGN Chief Operating Officer, Andrew Staniford commented on the idea behind release of the draft plan. “We are seeking submissions and feedback from interested parties by Tuesday 16 August 2016. These comments will be taken into account as we finalise our plan to submit to the AER at the end of the year.”
Staniford said the price drop would improve the affordability of natural gas, with lower network prices providing a real incentive for households to choose gas for cooking, hot water and heating. He added that households and small businesses switching to gas was also good for the environment. He said by burning gas directly in a home, carbon emissions can be reduced by up to 85 percent compared to using electricity generated from coal.
"The improved affordability of gas combined with its environmental advantages make natural gas a compelling proposition for every resident of Victoria and Albury where gas is available," Staniford said. “Natural gas is already relatively cheap in Victoria and Albury relative to other fuels.”
In May, AGN said it has planned a A$12 million investment in South Australia to boost gas supplies. AGN will build a new A$6 million pipeline to supply natural gas to the internationally renowned McLaren Vale wine and tourism district. Simultaneously the company is funding a significant A$6 million upgrade to the Seaford Aldinga high pressure network - the main gas pipeline supplying Adelaide’s southern coastal region including Seaford, Aldinga and Seaford Meadows - to improve and increase gas supplies to thousands of homes and businesses in the region.
AGN owns about 23,000 kilometres of natural gas distribution networks and 1,100 kilometres of transmission pipelines, serving over 1.2 million consumers in South Australia, Victoria, Queensland, New South Wales and the Northern Territory.
AGN has contracted APA Group to operate and maintain its gas distribution assets around Australia.