<
https://reneweconomy.com.au/regulator-agrees-to-smooth-cost-of-gas-network-death-spiral-as-electrification-reality-dawns/>
"Western Australian households can expect to start paying more for their annual
gas bills as early as January next year, as authorities move to “smooth” out
the cost of the gas network death spiral being wrought by the electrification
of everything.
The WA Economic Regulation Authority (ERA) says gas network tariffs will
increase by 7.8 per cent a year over the next five years, under its final
decision on the access arrangement for ATCO’s Mid-West and South-West Gas
Distribution Systems, which supplies more than 800,000 households and
businesses.
The ERA says the increase in tariffs – which is expected drive up residential
gas bills by around 7% in 2025 – has been influenced by economic factors
including high interest rates and inflation, but will also allow for
“accelerated depreciation” of ATCO’s investment in its network of gas
pipelines.
The issue of “accelerated depreciation” is a critical one for the industry and
consumers, as regulators seek to resolve the problem of who should bear the
cost of stranded gas pipelines and other infrastructure left behind by the
rapid push to electrification.
While gas companies scramble to claw back the billions they have invested, it’s
up to regulators and governments to ensure that low income and vulnerable
households aren’t left to foot the bill.
The issue is further confused by some gas industry claims that existing
networks of gas pipelines will not be stranded, but rather upgraded for use to
supply green hydrogen-based “renewable gas” to homes and businesses of the
future.
But these claims are getting less and less believable, particularly when major
gas distribution companies are actively seeking regulator approval to recoup
their costs."
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
