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Envestra seeks price rise to support capital works program

The average charge for delivering gas to domestic customers would rise by approximately $1.40 per week in South Australia and $1.60 per week in Queensland if the company’s proposal is accepted by the AER.

Envestra Managing Director Ian Little said “Subject to the AER allowing an acceptable, market-related investment return, we will spend around $675 million on capital projects over the next five years.

“The proposed increase in revenue of around $40 million per year would be used to support the significant capital program.”?

The works program aims to replace gas mains, improve network reliability and enhance gas supply capacity across Envestra’s assets in South Australia and Queensland.

The requested increase comes as part of the review of the company’s access arrangements. The revised access arrangements are for the five years commencing 1 July 2011.

It is expected that the AER will issue its draft determination in early 2011 and the final determination in April 2011.

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