Quotes attributable to Dr Brendan French, Energy Consumers Australia CEO
"Energy Consumers Australia (ECA) is deeply disappointed by the South Australian Government's proposed legislation to defer changes to the National Gas Rules that would help protect the state’s existing gas customers from rising bills.
"ECA proposed the original rule change, which was widely supported by stakeholders and approved by the Australian Energy Market Commission. The change would have meant connecting customers, including developers, pay upfront for new gas connections instead of these costs being socialised among all gas consumers. This prevents further increases in gas bills for existing gas customers, including those who face barriers to electrification.
"Australian Gas Networks (AGN), the South Australian gas network operator, expects household gas demand in South Australia to decline by 21%, and household connections to decline by 2.6%, over the next five years, as consumers embrace electrification.
"Gas bills are already rising. Our modelling shows that a typical AGN (SA) residential customer who keeps their gas use constant could see their gas bills rise more than 60% over the next decade and by 265% by 2050. The South Australian Government's move risks adding up to $155 million in new connection costs for the state’s gas consumers, increasing gas bills and exacerbating already significant cost-of-living pressures they continue to face.
"ECA recognises the South Australian government’s commitment to a fully operational gas network and to consumer choice. The rule change would still enable consumers to connect to gas, but that choice would be paid by the connecting customer rather than by other consumers on the gas network.
"Consumers cannot be left paying an unfair share as the gas network declines. ECA again calls on the South Australian government to reconsider the derogation and protect households and small businesses who remain connected to the gas network from rising bills."
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Notes for editors: More information on the gas distribution network rule changes is available here.
More information on the National Gas (South Australia) (Application of Rules) Amendment Bill is available here and here.