Australian Gas Networks

The Hon. S.W. KEY (Ashford) (14:12): My question is directed to the Minister for Mineral Resources and Energy. Can the minister update the house on the Australian Energy Regulator's final decision on the Australian Gas Networks' access arrangement for the period 2016-2021?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:12): As a matter of fact I can, and I thank the member for her question and her keen interest in keeping the cost of energy low in her own community. The government is doing all it can to give South Australians reliable and affordable energy.

The government is committed to working with the industry and communities to serve South Australia and make sure it will remain a place where people and business thrive. In July last year, the gas distribution business, Australian Gas Networks, submitted its 2016-2021 access arrangement proposal to the Australian Energy Regulator which proposed a significant increase in both capital and operating expenditure. Submissions were invited by the Australian Energy Regulator, and the government called on the regulator to identify any opportunities for real decreases in gas prices. I do note that the opposition put in no submission.

This morning, the regulator released its final decision to allow the Australian Gas Networks to recover $985 million over this 2016-2021 regulatory period. This is a substantial reduction in the $1.1 billion that the Australian Gas Networks proposed over the same period. This is an unambiguous win for all South Australian households which will reduce gas bills by about $144 each year, or 12.4 per cent by 1 July this year, on average. The reduction is even better for South Australian small business who can expect, on average, a saving of $750 in their gas bills.

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: Here we go. Finally, we are giving some good news to South Australian consumers and the only person upset about it is the Leader of the Opposition. Distribution charges make up about 56 per cent of the annual gas bills in this state, so the Australian Energy Regulator's determinations have a significant impact on retail bills.

Today, I have written to AGL, Origin, EnergyAustralia, Simply Energy and Alinta, urging these retailers to pass on the savings in full to households and businesses. I encourage consumers to use the Energy Made Easy website to ensure they receive a maximum benefit. If the opposition had made a submission to the Energy Regulator rather than scoffing in the chamber, perhaps they would have more credibility on the issue.

The SPEAKER: The minister is called to order for debating the matter. The leader.