AER announces Draft Decision on our 2020-25 Regulatory Proposal
The Australian Energy Regulator (AER) response accepted a number of our plans, including work to ensure the network can support the integration of more solar, batteries and electric vehicles to 2025.
However, we are concerned the AER did not fully recognise the very specific challenges of managing South Australia’s ageing distribution network – the oldest in the National Electricity Market (NEM).
If the AER draft decision stands we will spend 20% less in the next five years on replacing aging assets than we invested in 2015-2020. We don’t believe that this is sustainable for a network of the scale and age of South Australia’s and it will make it more difficult to maintain reliability and safety. It also 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, it would add about $3 per annum to the bill of a residential customer.
We also are disappointed, as are some of our stakeholders, that the AER has not supported a plan to improve reliability of some of our worst-performing power lines mainly in regional locations including the Eyre Peninsula and Adelaide Hills.
Our future plans were developed following extensive engagement with customers, stakeholders and the community who indicated they had three priorities – keeping prices down, maintaining safety and reliability and transitioning to the new energy future.
We are in the process of reviewing the AER’s specific decisions in greater detail. We are also engaging further with our customer representatives and other stakeholders before submitting a revised proposal to the AER in December.
You can read the full Draft Decision on the AER’s website.