AER approves 2020-21 SA AGN distribution tariffs

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The Australian Energy Regulator (AER) has approved the 2020-21 gas distribution tariffs proposed by Australian Gas Networks (AGN) for its South Australian network.

These tariffs comply with the requirements of the AGN (SA) 2016-21 Access Arrangement. The Access Arrangement sets the cost of delivering gas supply to customers over five years, excluding movements in wholesale gas prices.

In 2020-21 the network component of the typical annual bill compared to the previous year is $21.71 higher for AGN residential customers. The changes will come into effect from July 1, 2020.

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This increase is the minimum required for AGN to continue to provide a safe and reliable service and to meet regulatory obligations. The increased network charges are also lower than those set out in the price path set by the 2016–21 access arrangement.

The average residential energy bill consists of several cost components including retail, wholesale and network costs. This decision relates to the network cost component only. As other costs may be moving in different directions, changes in retail bills may differ from the estimates provided.

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The AER acknowledges that energy bills are a concern to many households and businesses at this time. We encourage consumers to use the AER’s EnergyMadeEasy website, our free and independent price comparison tool, to find the best deal to suit their energy needs.

The AER also acknowledges the impact COVID-19 is having on consumers and the industry. Our Statement of Expectations outlines support that can be provided to consumers who are having trouble paying their bill.