We broadly support the AER’s draft decisions to reject AGN’s proposed accelerated depreciation and to reduce Evoenergy’s proposal. We remain concerned that accelerated depreciation increases bills for current consumers, while doing little to reduce long-term asset stranding risk.
Independent modelling undertaken by Dynamic Analysis for Energy Consumers Australia, shows accelerated depreciation would increase typical residential bills by around $170 over 2027–31, while reducing the regulatory asset base by only 2.8 per cent. The modelling also highlights significant long-term bill increases for remaining gas customers as demand continues to decline, and clear economic benefits from electrification.
Our submission urges the AER to:
- Not approve accelerated depreciation in the absence of a broader framework for sharing stranding risk
- Carefully scrutinise capital and operating expenditure in light of declining demand
- Ensure that the costs of network decline are not disproportionately borne by household and small business consumers
Page last updated:
20 February 2026
