icon-gas Australian Gas Networks' jurisdictional service standards for the 2016-2021 regulatory period

  • Project Released: 07 Mar 2014
  • Project Closes: 04 Jun 2015
  • Contact: Amber Miller

Overview

The Commission consulted on the jurisdictional service standards to apply to Australian Gas Networks for the 2016-2021 regulatory period in 2014-15.  The jurisdictional service standards were set in advance of Australian Gas Networks providing its Regulatory Proposal to the Australian Energy Regulator to allow for consideration of the expenditure required to deliver service levels determined by the Commission.

This was the third review undertaken by the Commission, with previous reviews completed in 2006 and 2010.

Status

Current status is Final

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Final

This review has determined that AGN has performed satisfactorily over the five year period 2009-10 to 2013-14 and that current service levels are appropriate and should be maintained for the 2016-2021 regulatory period.  This decision is supported by participants in AGN’s stakeholder engagement program, who were generally satisfied with AGN’s gas distribution services and reluctant to pay for improvements to current service levels.  High levels of customer satisfaction were further supported by the consistently low number of complaints received by AGN and the low proportion of complaints that required escalation to the Energy and Water Ombudsman SA.

Instead of setting binding service standards, the Commission will continue the existing practice of using the regulatory tools of monitoring and publicly reporting on performance outcomes.  AGN will be required to report to the Commission on its responsiveness to public reports of potential gas leaks and customers experiencing poor reliability outcomes.  This will maintain an appropriate public focus on AGN’s performance and provide an enhanced data set on which any future standards (if required) can be based.

A Guaranteed Service Level Scheme will not be introduced for the 2016-2021 regulatory period as the costs of such a scheme (which are borne by all customers) outweigh the likely benefits at this time.  The Commission will monitor the instances of multiple interruptions and long duration interruptions in the network during the period to provide an evidence base for future decisions on whether a GSL scheme is warranted in the future.

Publications