Peak Energy Body Welcomes Aer Pricing Issues Paper

Peak Energy Body Welcomes AER Pricing Issues Paper

The Energy Networks Association (ENA) welcomed the release today of a significant Pricing Issues Paper by the Australian Energy Regulator (AER).

"Revenue for energy networks is now regulated by the AER and this is the first rate of return Review to be undertaken by the new national regulator", said Energy Networks Association, Acting CEO, Mr Michael Kilgariff.

"Australia cannot afford delays in infrastructure investment and the outcomes of the Review will be critically important to investment incentives for energy transmission and distribution networks valued at $50 billion and increasing.

"Attracting the global investment dollar requires the right incentives to be in place for energy infrastructure businesses that are competing for scarce capital in investment markets.

"The AER has a responsibility to ensure that there is sufficient investment for the continued provision of cost efficient energy to industry, business and residential customers, and a key concern for the AER will be avoiding the risk and high cost that comes with underinvestment", said Mr Kilgariff.

"On top of investment concerns, climate change obligations and continued strong demand for energy are two big challenges for Australia's energy security.

"The delivery of clean energy is dependent upon a well integrated robust energy network with the capacity to deal with potentially large shifts in energy flows and the flexibility to adapt to structural change following the introduction of an emissions trading scheme.

"A key step in ensuring energy infrastructure plays this role will be the future recognition by the AER of all the costs and risks faced by networks in making the required structural changes.

"This may mean amendments to the current regulatory framework by the Australian Energy Market Commission so that network businesses are able to adopt the most efficient and effective options for delivering secure, reliable, clean energy that underpins the Australian economy", Mr Kilgariff said.

Ends.

For further information contact
Michael Kilgariff on (02) 6272 1511 or 0418 627 995.

ENA is the peak national body for Australia's energy networks; and represents gas distribution and electricity network businesses on economic, technical, environment and safety regulation as well as national energy policy issues.

SOURCE: Energy Networks Association