Gas network plan - Evoenergy

Following the release of a draft plan for the gas network in February, we’ve now finalised and submitted our plan for the five-year period starting 1 July 2021 to the Australian Energy Regulator for review.

This plan sets out our forecast operating costs and capital expenditure, our forecast gas connections and usage and how much revenue we expect we’ll require each year over the next five year period.

During the consultation period for our plan, we received feedback from the community about their views on our gas network and how it should operate over the coming five-year period and, where we could, we have factored this feedback into our plan.

What’s new since the draft plan?

Since we published our draft plan in February 2020, we have updated our forecasts and considered the feedback we’ve received regarding the transition of the gas network to meet the ACT Government’s 2045 net zero greenhouse gas emissions target.

Based on new information, the forecast revenue requirement for our gas network has gone down from $300 million to $294 million (in constant 2020/21 dollars). This reduction is driven mainly by a reduced expected rate of return due to financial market conditions, partially offset by slightly higher operating costs due mostly to updated forecast assumptions for government charges.

We have also refined our customer number and demand forecasts and, with input from consumers, made decisions on the performance measures to include in the proposed capital expenditure sharing scheme (CESS).

Over the past year, we have received feedback from consumers and key community representative organisations such as community councils, the Conservation Council and ACTCOSS, as well as Evoenergy’s Energy Consumer Reference Council and Citizens’ Jury. We also heard from other key stakeholders including the ACT Government, the Australian Energy Regulator Consumer Challenge Panel, and industry partners such as Jemena and Energy Networks Australia.

We thank those in the community who’ve taken the time to learn more about the gas network access arrangement review process and get involved to shape our plan.

The Australian Energy Regulator will conduct public consultation on our plan in July and August 2020 and provide us with feedback and their draft decision around November 2020. For more information on the consultation process run by the Australian Energy Regulator or to make a submission, visit https://www.aer.gov.au/networks-pipelines/determinations-access-arrangements/evoenergy-access-arrangement-2021-26.

See more information about the gas five year plan regulatory process or read our gas network 2021 plan summary for consumers.

COVID-19 impacts

During the last four months of finalising our 2021–26 gas network access arrangement, we completed our engagement program digitally as we adjusted our operations in response to COVID-19. Most of the inputs and assumptions that have informed our forecasts were developed before the impact of COVID-19, so it’s difficult to determine at this stage how our plan may be affected. We will continue to monitor, assess and refine our plan as more is known about the effects of COVID-19 on demand and cost forecasts.