On Wednesday August 2, we held our third Gas Networks 2050 Tariff Structures Customer Forum.

Our first and second Gas Networks 2050 Tariff Structures Customer Forums were held on Wednesday July 5 and Tuesday July 18.

The first session focussed on introducing participants to Jemena, how the gas network operates and what the significant challenges are for gas.

The second session allowed participants to interrogate four industry experts in gas network planning, economics and customer engagement, to better understand the two key questions we are asking them; who bears the financial risk and should we encourage future gas usage given the net zero targets.

To set the amount of revenue that Jemena can collect over the 5-year period, the AER sets a pricing control. All gas distribution networks in Australia are regulated via a price control called the weighted average price cap.

The pricing methods are complex and relate, broadly speaking, to who bears the financial risk, how fair are the measures to customers and to Jemena, and how they can help create a certainty of gas supply into the future.

Most participants agreed that either Jemena should bear the financial risk or there should be a hybrid model where there was some cost sharing with customers. It was noted that Jemena was in a better position to manage the risk, but that to ensure the ongoing business viability of Jemena, that customers felt they should share some portion.

In terms of thoughts on a tariff structure encouraging more gas use, there was a split across the groups, with three groups clearly agreeing that more gas usage should not be encouraged due to environmental reasons. The other two noting that the supply charge component should change in some way and that the current way works well now.

Thank you so much to everyone who attended and for giving up your time on a weeknight to be part of the journey.