The energy system is undergoing a once-in-a-generation transformation. We are operating in a period of significant uncertainty surrounding the future role of gas networks in the Australian energy landscape. This presents a complex challenge for us and our customers in determining how best to respond to the challenge in the long-term interests of consumers.

Whilst we believe that our network can play a vital role in supporting the transition to net zero, there is still much uncertainty about both the exact pathway and pace of the energy transition.

The Australian Energy Market Operator (AEMO) forecasts residential and small commercial consumption to gradually decline in the short term, with electrification to reduce natural gas usage more significantly in the medium to longer term as the economy transitions to meet net zero emissions by 2050.

This uncertainty adds complexity to our planning processes but the need to act now is imperative – the earlier we start to address the challenges presented because of the rapid energy transition, the smoother the pathway to net zero will be. Our 2025 Plan will implement initiatives based on the best available information and provides flexibility to adjust these initiatives in the future as new information becomes available.

Regardless of how we respond to the energy transition, we must also continue to meet our regulatory obligations in the areas of safety, reliability, security, and the environment, which are key drivers of our expenditure forecasts for the 2025 Plan period.

Customer and stakeholder feedback on the Draft 2025 Plan will inform our Access Arrangement Revision Proposal that we will submit to the Australian Energy Regulator (AER) on 30 June 2024.