Distribution prices to fall: Jemena Gas
Jemena welcomed the recent Federal Court decision that largely validates the Australian Competition Tribunal’s determination for Jemena Gas Networks for the period commencing 1 July 2015 to 30 June 2020.
Jemena’s Executive General Manager of Customer and Markets, Shaun Reardon, said the decision reinforces the importance of being able to independently review regulatory decisions.
“Jemena Gas Networks remains committed to placing downward pressure on gas distribution prices in New South Wales, and notes that appeal bodies will only overturn decisions of the regulator that promote consumers interests,” said Mr Reardon.
“We welcome the ruling of the Federal Court, noting it will take time to review and implement. Despite this, we know that gas distribution prices will decrease for residential and small business customers of Jemena Gas Networks.”
Mr Reardon said Jemena Gas Networks will review the detail of the Court’s decision and work with the AER to implement its findings.
Lowering gas distribution prices since 2015
Mr Reardon said yesterday’s decision does not impact gas distribution prices for the 2017-18 Financial Year.
“Jemena currently has a proposal with the AER which will reduce the price to deliver gas to consumers across New South Wales by 5.6 per cent for 2017-18 or by approximately $18 for an average household.”
“This is in addition to price reductions on average of $156 since 2015.”
Mr Reardon said customers will likely see the price reduction reflected in the gas distribution portion of their energy bills.
“Gas distribution costs account for approximately 30 per cent of household gas bills. We anticipate active competition in the retail sector will result in this reduction being transferred to customers and reflected in a lowering of this portion of their gas bill.”