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Jemena moves to lower NSW gas prices

Jemena has proposed cuts to the cost of its gas distribution charges for customers in New South Wales.

The energy infrastructure company, which owns and operates the Jemena Gas Network (JGN), has written to the Australian Energy Regulator (AER) to recommend a revised cost structure.

In October 2019, a report from the Institute for Energy Economics and Financial Analysis (IEEFA) highlighted that Australian’s have been paying 71 per cent more for gas than the export netback price.

Now, Jemena’s revised plan proposes a reduction in gas prices for all commercial and industrial customers by an average of 25 per cent over the next five-year period, equating to savings of $16,296 for the typical large commercial consumer.

Jemena Executive General Manager of Gas Distribution Dr Jennifer Purdie said the recommended cuts were based on customer engagement and the need to manage the current network effectively while taking population growth and increased urbanisation into consideration.

“We were pleased the AER’s draft decision recognised the considerable input our customers had in our decision making process and the 2020-2025 price plan submission,” Dr Purdie said.

“Our customers told us they want to pay a fair price for natural gas to cook, heat homes and for hot water. They also want us to take appropriate action now to respond to uncertainty around the long term future of the gas grid.”

Jemena said its JGN 2020 Plan includes driving sustainable cost reductions without compromising safety or reliability; delivering balanced outcomes across household and business customers; connecting 135,000 new customers to the network and continuing to promote gas as a competitive fuel choice.

“Our customers also told us that they expect us, and the energy industry, to innovate and plan for the future so that they can continue to use gas in the longer term, as we move to a lower carbon future,” Dr Purdie said.

The AER will issue its final decision on 30 April 2020 with the new price structure effective as of 1 July 2020.

For more information visit the Jemena website.

If you have news you would like featured in The Australian Pipeliner contact Managing Editor David Convery at dconvery@gs-press.com.au

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