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Jemena, owner and operator of the Jemena Gas Network (JGN), has proposed a revised cost structure to the Australian Energy Regulator (AER) for the five-year period of 2020-2025.

Jemena’s recommended cuts to the cost of its gas distribution charges would result in a cost reduction of $292 (21 per cent) for a typical household of natural gas customers in New South Wales over a five-year period. 

The savings would increase to $460 over five years for regional residential JGN customers, who typically consume more natural gas.

The revised JGN 2020 Plan also proposes a reduction in gas prices for all commercial and industrial customers by, on average, 25 per cent – a saving of $16,296 over five years for a typical large commercial customer.

Jemena’s Executive General Manager of Gas Distribution, Dr Jennifer Purdie, said the recommended cuts are based on extensive customer engagement.

“We were pleased the AER’s draft decision recognised the considerable input our customers had in our decision making process and the 2020-2025 price plan submission,” Dr Purdie said.

“Our customers told us they want to pay a fair price for natural gas to cook, heat homes, and for hot water. They also want us to take appropriate action now to respond to uncertainty around the long term future of the gas grid.” 

The Jemena Gas Network 2020 Plan was developed during a period of unprecedented change in the Australian energy market. 

Key focus areas in the JGN 2020 Plan include:

  • Driving sustainable cost reductions, without compromising safety or reliability, to put downward pressure on bills
  • Innovating for a lower carbon gas future by readying the network to transport low-carbon gas
  • Delivering balanced outcomes across household and business customers, current and future generations, and city and regional areas of NSW
  • Connecting 135,000 new customers to the network and
  • Continuing to promote gas as a competitive fuel choice, which will help to lower bills in the future

“Our customers want to continue to use gas into the future. Our challenge is to manage the current network effectively, while taking into consideration issues such as population growth and increased urbanisation,” Dr Purdie said.

Jemena has called on the AER and energy retailers to pass on the recommended price reductions to customers. The AER will issue its final decision on 30 April 2020. The new price structure is effective from 1 July 2020.

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