Victorian electricity distributor AusNet has submitted a proposal to the Australian Energy Regulator (AER) to approve $3.5 billion in investment to upgrade the distribution network to improve its reliability and resilience for customers.
It follows more than two years of engagement and research involving more than 16,000 customers to seek feedback on the investment proposals.
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The $3.5 billion comprises:
- $1.35 billion to replace ageing assets so the network can continue to operate safely and reliably.
- $770 million to increase the capacity of the network, support customer growth and enable more customers to electrify their gas appliances and transport.
- $430 million to improve reliability for problem areas on the network and to make the network more resilient to extreme weather.
- $430 million on digital systems to maintain core services, improve AusNet’s responsiveness to extreme weather events, and uplift customer experience.
- $240 million to integrate rooftop solar and large-scale wind and solar generators, putting downwards pressure on wholesale energy prices.
AusNet executive general manager electricity distribution Andrew Linnie said this investment would provide the funding necessary to continue to meet customer and community needs to support reliability, safety and electrification.
“We know our customers are facing cost-of-living pressures and we believe we have struck a balance between investing in the network, while keeping energy prices as affordable as possible,” Linnie said.
“We have seen a significant increase in frequency and severity of extreme weather events and it’s important we make the network more resilient to these occurrences. We also want to improve reliability for many of our regional customers.”
“The initiatives and investment proposed are an important step to enable our network to meet future needs,” he added.
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This proposal comes following feedback from AusNet customers on the draft plan late last year.
AusNet plans are approved by the AER every five years through the Electricity Distribution Price Review (EDPR) process.
