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PEG concerns with WP gas benchmarking: allowed cost instead of actual data; “comparing oranges to tangerines”

Posted by gasweek on 26 September, 2007

The Essential Services Commission (ESC) was undertaking a gas access arrangement review (GAAR) for the three gas distribution businesses (GDBs) serving Victoria (Multinet, SPAusnet, and Envestra), noted PEG partner Larry Kaufmann’s response to Worley Parsons Benchmarking Analysis, Victoria (July 2007). Read the rest of this entry »


Posted in Distribution, Gas, Regulation, Victoria, Volume 2601 | Leave a Comment »

SP AusNet, Envestra related-company contracts not acceptable for regulated cost as inter-company billing not tested by tender

Posted by gasweek on 26 September, 2007

In the Gas Access Arrangement Review 2008-2012, The Victorian Essential Services Commission, Draft Decision, 28 August 2007 explained why the Commission may not be able to accept a contract payment as evidence of the prudent and efficient costs of providing services as SP AusNet and Envestra had achieved significant reductions in expenditure in 2005 which continued into 2006. Read the rest of this entry »

Posted in Distribution, Price, Regulation, Victoria, Volume 2601 | Leave a Comment »

Victoria’s three main gas distribution businesses, Multinet, Envestra and SP AusNet subject to Draft Decision from January 2008

Posted by gasweek on 17 September, 2007

A Draft Decision, which will be finalised in November, would apply from January 2008 to Victoria’s three main gas distribution businesses, Multinet, Envestra and SP AusNet, according to a media release by the Victorian Minister for Energy and Resources.

Regulator determines balance: The Gas Access Arrangements Review occured every five years, when gas distributors made submissions to the regulator about their expected revenues, the release said. The regulator then determined average distribution charges that fairly balanced consumer and industry needs, and maintained returns that allow further capital investment.

Drought affects industry: The Minister stressed that the energy industry continued to be hit by the current drought, which had pushed up the wholesale costs of gas and electricity. He said demand for gas increased because gas-fired electricity generation was substituting for reduced hydro and coal-fired electricity generation, due to water shortages caused by drought. Gas was an effective but more expensive form of electricity generation, the Minister said.

Reference: Media release from the Minister for Energy & Resources, Victoria, 28 August 2007. Contact: Dan Ward. Phone: (03) 9651 5799. Mobile: 0407 138 680. Website:

Erisk Net, 28/8/2007

Posted in Distribution, natural gas, Policy, Price, Regulation, Retail, Victoria, Volume 2520 | Leave a Comment »