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PIAC submission to the AER's review of prices for Jemena Gas Network from 1 July 2015
Publication date:
25 August 2014
Resource type:

This submission responded to Jemena Gas Network’s five-year pricing proposal to the Australian Energy Regulator (AER). In the submission, PIAC supported Jemena’s proposal for a real reduction of 20% in the prices paid by a typical residential consumer over the five-year period. PIAC also supported Jemena’s proposal to give consumers a smooth price path over the period of the price determination and to reduce the fees associated with gaining a special meter read (prior to changing gas retailer). However, PIAC also noted that some areas of Jemena’s proposal warranted close scrutiny, and recommended that the AER undertake the necessary analysis. In particular, PIAC expressed concern that Jemena had proposed a weighted average cost of capital (WACC) that was inconsistent with the AER’s Rate of Return Guideline and recommended that the AER not approve Jemena’s proposal in this area.

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