<
https://reneweconomy.com.au/death-spiral-network-blows-up-renewable-gas-claims-wants-to-hit-consumers-for-cost-of-stranded-assets/>
"Energy network company AusNet Services has torpedoed claims “renewable gas”
will be able to service households for decades in the future, and is seeking to
charge customers an extra $70 million to use its pipelines because it fears the
accelerated switch to all-electric homes will leave its assets stranded.
If the claim by AusNet succeeds, and is followed by Victoria’s other gas
distribution networks — Multinet Gas Networks and Australian Gas Networks — the
state’s gas households would have to pay about $220 million more for pipelines
over the five years to 2028 than was agreed with the regulator just two years
ago.
That would lift to more than $550 million the extra charges sought by Victorian
pipeline owners for “accelerated depreciation” in the past two years. Pipeline
owners say these claims are justified because rapid electrification will
shorten their networks’ commercial lifetimes – or the period over which they
can recoup their investments.
The Victorian government has banned gas in new dwellings, and is mulling bans
on replacements of end-of-life gas appliances and a push to accelerate
electrification in commercial buildings.
“Basically you’re looking at a couple of billion dollar’s worth of assets that
are disappearing,” says Gavin Dufty, national director of energy policy and
research at St Vincent de Paul Society.
AusNet says in its application to the Australian Energy Regulator (AER) for a
variation to its gas access arrangement for 2023-2028 that while its original
submission foresaw two possible paths – electrification or renewable gas – “the
renewable gas path is now increasingly unlikely for Victorian households”.
At stake are pipeline networks valued at about $5 billion in Victoria, which
has the biggest domestic network, and the equitable treatment of low income and
vulnerable households who will have to pay more to access gas networks after
richer households and small firms move fully electrify their homes and
premises.
“The issue is that accelerated depreciation right now seems to be the only tool
that the AER has, because this is a shit sandwich, right? says Tony Wood,
director of The Grattan Institute’s energy program.
“No one wants to eat it, and you’ve got the government, you’ve got the
shareholders and the businesses, and you’ve got the consumers. And we’ve got to
decide what we’re going to do about these assets, which are on the books of
these companies for a lot of money.”"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
