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https://reneweconomy.com.au/not-fair-to-force-consumers-to-pay-for-gas-death-spiral-says-advocate/>
"Anger over rising fees to pay for future stranded gas infrastructure is
building, with another consumer advocate demanding regulators better manage the
new cost on customers.
The Justice and Equity Centre (JEC) says in a new submission that it’s not fair
to charge today’s gas users for tomorrow’s problems when gas network owners
can’t even identify what the exact cost to future consumers might be.
It’s arguing that “accelerated depreciation” – dropping the value of assets
faster so customers can be charged more, earlier – is being used to pay for
more than just stranded asset risk, and gas networks need to give a full
accounting to justify risk-based hikes.
“Accelerated depreciation has inappropriately been presented as a tool to
manage intergenerational equity, often to the exclusion of any other
consideration,” says the JEC’s rule change request to the Australian Energy
Market Commission (AEMC).
“We contend it is inherently inequitable for today’s consumers to bear
investors’ potential future costs, particularly when there is no certainty as
to what specific asset risks these costs relate to.
“If the fair cost to future consumers is not established, then it is not
reasonable for existing consumers to assume an increased cost.”
The push for electrification is causing a death spiral for gas networks, as
rising gas prices and an awareness of the benefits of electric appliances is
resulting in more households and customers moving off gas.
The problem for industry and regulators is who will pay for stranded gas
pipelines and other infrastructure when a dwindling number of people remain
using them – most likely renters, apartment dwellers, and others who cannot
afford to make the switch to electrify their homes.
But consumer advocates say it’s just as unclear which assets will be stranded,
and when."
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
