Phase 5 - 2020-25 Revised Regulatory Proposal submitted

We submitted our 2020-25 Revised Proposal for managing the South Australian electricity distribution network with the Australian Energy Regulator (AER) on 10 December 2019.

The Revised Proposal follows an extensive engagement program with customers and stakeholders over the past three years. The Proposal will deliver an average reduction of $62 for residential customers and $276 for small-to-medium sized businesses in 2020-21. In fact our distribution network charges in 2020/21 will become the lowest they have been for a decade.

Figure 1: Key outcomes for customers

Throughout conversations with customers and stakeholders there has been a growing recognition that equity for customers is not just a matter of price. Equity also means not passing on today’s costs to future generations and doing something for customers who get a substantially worse service than others in South Australia. Our stakeholders have also made it clear that it is not equitable for us to “kick the can down the road” by deferring expenditure on an ageing network today, in order to push additional costs onto future years and generations of customers.

As a result, our Revised Proposal includes some important targeted enhancements to reliability for some of our worst-performing feeders, as well as plans to reduce the risks posed by our ageing assets.

Figure 2: Customers' key priorities and our Revised Proposal

In response to the AER’s Draft Decision on our Original Proposal, lodged back in January 2019, we have provided additional evidence to support programs in areas such as replacement of ageing assets, investment in information technology and some much needed property improvements at various sites across the business.

You can read more about our Revised Proposal in our Overview .

We submitted our 2020-25 Revised Proposal for managing the South Australian electricity distribution network with the Australian Energy Regulator (AER) on 10 December 2019.

The Revised Proposal follows an extensive engagement program with customers and stakeholders over the past three years. The Proposal will deliver an average reduction of $62 for residential customers and $276 for small-to-medium sized businesses in 2020-21. In fact our distribution network charges in 2020/21 will become the lowest they have been for a decade.

Figure 1: Key outcomes for customers

Throughout conversations with customers and stakeholders there has been a growing recognition that equity for customers is not just a matter of price. Equity also means not passing on today’s costs to future generations and doing something for customers who get a substantially worse service than others in South Australia. Our stakeholders have also made it clear that it is not equitable for us to “kick the can down the road” by deferring expenditure on an ageing network today, in order to push additional costs onto future years and generations of customers.

As a result, our Revised Proposal includes some important targeted enhancements to reliability for some of our worst-performing feeders, as well as plans to reduce the risks posed by our ageing assets.

Figure 2: Customers' key priorities and our Revised Proposal

In response to the AER’s Draft Decision on our Original Proposal, lodged back in January 2019, we have provided additional evidence to support programs in areas such as replacement of ageing assets, investment in information technology and some much needed property improvements at various sites across the business.

You can read more about our Revised Proposal in our Overview .

Discussions: All (1) Open (1)
  • Our network of poles and wires is the oldest in Australia, built in the 1950s and 1970s. That’s up to 70 years ago!  Not surprisingly, parts are now reaching the end of their working lives. To ensure we continue to safely supply reliable power to the 900,000 homes and business we service in SA, 38% of our proposed capital works program over 2020 – 2025 is dedicated to replacing and updating our ageing network assets. 

    In its recent Draft Decision, the AER has proposed we spend 20% less in the next five years on replacing ageing assets than we...

    Our network of poles and wires is the oldest in Australia, built in the 1950s and 1970s. That’s up to 70 years ago!  Not surprisingly, parts are now reaching the end of their working lives. To ensure we continue to safely supply reliable power to the 900,000 homes and business we service in SA, 38% of our proposed capital works program over 2020 – 2025 is dedicated to replacing and updating our ageing network assets. 

    In its recent Draft Decision, the AER has proposed we spend 20% less in the next five years on replacing ageing assets than we did from 2015-2020.  

    We don’t believe 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 have been talking to stakeholders about the Draft Decision and recently, we took a group of stakeholders on a tour around Adelaide to show them first-hand some of our ageing assets and why we need to replace and update them. 

    What do you think about our proposed asset replacement program, which helps us to keep the lights on for all South Australians?  We want to hear your thoughts!  Comment below.

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