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PIAC submission to the AER’s draft determination for Jemena Gas Network
Derum, Oliver.
Publication Date:
27 Mar 2015
Publication Type:

This submission responded to the Australian Energy Regulator’s (AER) draft price determination for Jemena Gas Network in NSW (the draft determination). In the submission, PIAC largely endorses the AER’s draft determination, arguing that if it was made final, consumers would benefit from lower gas network prices from 1 July 2015. More specifically, the addressed two issues: the weighted average cost of capital (WACC) and Jemena’s proposed price path over the five-year price determination period. Regarding the WACC, PIAC disagreed with Jemena’s decision not to comply with the AER’s Rate of Return Guideline. Regarding the price path, PIAC supported Jemena’s intention to use network prices to cushion consumers from the impact of expected increase in wholesale gas prices.

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