Phase 4 - 2020-25 Regulatory Proposal

AER releases its Draft Decision on our 2020-25 Regulatory Proposal

On 8 October, the AER released its Draft Determination on our 2020-25 Regulatory Proposal. We agree with the Australian Energy Regulator (AER) that customers should pay no more than necessary for our electricity distribution services, and we consistently have delivered on that. We have held our costs below CPI for 20 years and the AER’s own benchmarking data shows we provide the most efficient distribution services in the NEM on a state-wide basis.


We acknowledge the AER has accepted many aspects of our plans, including how we will work to ensure the network can support the integration of more solar, batteries and electric vehicles to 2025.However, we are concerned that in its draft revenue decision for the 2020-2025 period, the AER has not fully recognised the very specific challenges of managing South Australia’s ageing distribution network – the oldest in the National Electricity Market (NEM).

Our plans were developed following extensive engagement with customers, stakeholders and the community and balancing what they told us was important to them – keeping prices down, maintaining safety and reliability and transitioning to the new energy future.

The AER draft decision means we would spend 20% less in 2020-25 on replacement of assets (Repex) than we invested in 2015-2020, on assets that are five years older. We don’t believe that this is sustainable for a network of this scale and age. It will make it difficult to maintain reliability and safety.Running down the electricity network through short term cost cutting will push increasing costs on to customers in the future.
Had the AER accepted our proposal in full for a measured ongoing replacement of ageing assets, that would add about $3 per annum to the bill for the average residential customer.

We will review the AER’s specific decisions in greater detail and engage further with our customer representatives and other stakeholders before submitting a revised proposal to the AER in December.
The AER is due to make its final decision on 2020-2025 revenue in April 2020.

You can read the full Draft Decision on the AER’s website.

AER releases its Draft Decision on our 2020-25 Regulatory Proposal

On 8 October, the AER released its Draft Determination on our 2020-25 Regulatory Proposal. We agree with the Australian Energy Regulator (AER) that customers should pay no more than necessary for our electricity distribution services, and we consistently have delivered on that. We have held our costs below CPI for 20 years and the AER’s own benchmarking data shows we provide the most efficient distribution services in the NEM on a state-wide basis.


We acknowledge the AER has accepted many aspects of our plans, including how we will work to ensure the network can support the integration of more solar, batteries and electric vehicles to 2025.However, we are concerned that in its draft revenue decision for the 2020-2025 period, the AER has not fully recognised the very specific challenges of managing South Australia’s ageing distribution network – the oldest in the National Electricity Market (NEM).

Our plans were developed following extensive engagement with customers, stakeholders and the community and balancing what they told us was important to them – keeping prices down, maintaining safety and reliability and transitioning to the new energy future.

The AER draft decision means we would spend 20% less in 2020-25 on replacement of assets (Repex) than we invested in 2015-2020, on assets that are five years older. We don’t believe that this is sustainable for a network of this scale and age. It will make it difficult to maintain reliability and safety.Running down the electricity network through short term cost cutting will push increasing costs on to customers in the future.
Had the AER accepted our proposal in full for a measured ongoing replacement of ageing assets, that would add about $3 per annum to the bill for the average residential customer.

We will review the AER’s specific decisions in greater detail and engage further with our customer representatives and other stakeholders before submitting a revised proposal to the AER in December.
The AER is due to make its final decision on 2020-2025 revenue in April 2020.

You can read the full Draft Decision on the AER’s website.

  • Our 2020-25 Regulatory Proposal was submitted on 31 January 2019

    22 days ago

    On 31 January 2019, we submitted our 2020-25 Regulatory Proposal for managing the SA electricity distribution network with the Australian Energy Regulator. Our plans explain how we are looking to deliver electricity distribution services across South Australia into the future, and how we're delivering better outcomes for helping to make electricity more affordable for all.

    If approved, the Proposal will deliver an average reduction of $40 for residential customers and $111 for small-to-medium-sized businesses from 1 July 2020. This is broadly consistent with likely outcomes outlined last August when our 2020-25 Draft Plan was released for consultation.

    The amount of...

    On 31 January 2019, we submitted our 2020-25 Regulatory Proposal for managing the SA electricity distribution network with the Australian Energy Regulator. Our plans explain how we are looking to deliver electricity distribution services across South Australia into the future, and how we're delivering better outcomes for helping to make electricity more affordable for all.

    If approved, the Proposal will deliver an average reduction of $40 for residential customers and $111 for small-to-medium-sized businesses from 1 July 2020. This is broadly consistent with likely outcomes outlined last August when our 2020-25 Draft Plan was released for consultation.

    The amount of savings individual customers received in 2020-21 will depend on the outcome of the regulatory process, how customers use energy, and to what extent retailers pass on the reduction in network charges.

    The AER has published all 2020-25 Regulatory Proposal documentation here. Submissions on our 2020-25 Regulatory Proposal are now open - more information regarding this process can be found on the AER's website here.

    The key documents that have been submitted include:

    Thank you for being a part of this important conversation.