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
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.
Current status is 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.