Power networks have welcomed reductions in gas network charges for customers in South Australia and the ACT.
Energy Networks Association (ENA) CEO John Bradley said the Australian Energy Regulator’s (AER’s) final decision on access arrangements for gas distributors highlighted a bright future for natural gas.
“The reductions in gas network prices for households and small businesses is welcome, given our homes and businesses rely on gas for cost-effective, low emission and convenient hot water heating, space heating and cooking,” Mr Bradley said.
The AER’s decisions on Australian Gas Networks’ and ActewAGL Distribution’s access arrangements for the five year period 2016 to 2021 will see gas prices fall from July 1, 2016.
The decisions released yesterday will mean a decrease in the network component of a typical household’s gas bill of $144 in South Australia and $79 in the ACT.
For small business customers, the decrease in the network component of the typical gas bill will be $750 in South Australia and $338 in the ACT.
“This is not only good news for customers – it is good news for the environment given the environmental benefits of gas,” Mr Bradley said.
“Natural gas from a distribution network delivers energy that can be less than one-sixth of the carbon intensity of coal-fired electricity.
“Natural gas is an economic and environmentally sound choice and an important part of a complementary energy mix for many Australian households and small businesses.”