Gas pipeline owners are being allowed to fast-track the process for writing down the value of their networks as the electrification trend gathers pace. Consumers are paying hundreds of millions of dollars extra each year to compensate the companies for the risks associated with owning and operating the pipes that transport gas to your home.
Category
📺
TVTranscript
00:00Like millions of Australians, retired physiotherapist Sonia Hicks uses a lot of gas in winter for heating.
00:09She's bracing for a bill that could be as high as $700 a year.
00:13Being retired, we do need it on during the day as well, so that probably doesn't help.
00:18We try and avoid putting it on until the evening, but sometimes it's just too cold.
00:24Those costs are set to increase further, courtesy of little-known changes washing their way through Australia's gas systems.
00:30Faced with declining use of their assets as more people switch to electricity,
00:34gas pipeline owners are fast-tracking the process of writing down the value of their networks.
00:39But instead of wearing the costs themselves, they're getting consumers to pick up the tab.
00:44What they're saying right now is households have to pay all the costs today, and we don't think that's fair.
00:49Under Australia's energy laws, gas pipeline owners can effectively pass on any costs deemed efficient by the regulators.
00:56In this case, critics say it's bringing forward billions in costs
00:59and will add between $100 and $200 to consumers' bills over the coming few years.
01:04And they warn the risks will grow larger as more people get off gas
01:08and those left behind have to pick up ever-increasing costs.
01:12If we don't get on top of this problem now, it becomes a much more difficult problem to solve into the future.
01:17Critics say Australia's gas network rules are unreasonable
01:20and lead to consumers shouldering virtually all of the risks.
01:24But the companies that own the gas pipelines say the system is fair and their returns are modest.
01:30When you invest in regulated utilities, there are trade-offs for investors and consumers.
01:37But we're dealing with an environment where the returns that investors receive is dictated by government.
01:46For Pinjarra retiree Sonia Hicks, the changes might just accelerate her transition away from the fuel.
01:52There is a finite point where you've got to say,
01:54hey, you know, you might have issues but I can't afford your type of heating anymore.
01:59Consumers facing cold comfort ahead of winter.
02:03I'm going to ask youiß.
02:04You're not going so far.
02:06I'm going so far.
02:07I'm going to ask you to wrap it up here.
02:11I'm going to ask you to wrap it up here.
02:13Responding up your time and go.
02:16You're 15 minutes before you take a number of gold,
02:18so you can keep an image of your grid.
02:20You're 15 minutes before you get into your grid.
02:22You're 15 minutes.
02:24I'll try and reach out the colors.