The replacement plan is part of an investment program released by Envestra on 17 February 2011, which Envestra Managing Director Ian Little said will “reduce repair costs and improve the security of supply, thereby reducing long-term costs to gas consumers.”?
Envestra Manager Corporate Services Des Petherick said “APA Group operates and maintains Envestra’s assets around Australia, and will be undertaking and managing the mains replacement program for us”?.
The AER’s has accepted Envestra’s need for expenditure in several areas to upgrade infrastructure as its final report provides the company with an extra $A100 million in revenue over five years. However, the AER also said Envestra’s proposed tariffs are still too high and revised the network charges in their final report to “better balance the interests of Envestra and network users.”?
Under the AER’s terms of the final report, South Australia network charges will now increase by 12.5 per cent from 1 July 2011 and an average of 10 per cent over subsequent years. Comparatively, in Queensland network charges will increase 15.3 per cent from 1 July 2011 and an average of approximately 7 per cent over subsequent years
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In response Envestra said “The company is accordingly reviewing the decision to determine if it will lodge an appeal to the Australian Competition Tribunal”?.