Victorian gas distributors Multinet Gas, Australian Gas Networks and AusNet Services are investigating incentive arrangements to improve gas network investment, according to the Energy Networks Association (ENA).
ENA Chief Executive Officer John Bradley said energy networks supported incentive-based mechanisms to promote efficient network expenditure and lower customer costs.
“Victorian gas distributors are consulting on potential changes to incentive mechanisms they could propose to the Australian Energy Regulator for their forthcoming access arrangements period,” Mr Bradley said.
“The proposals reflect reforms occurring overseas to focus on customer outcomes – in the UK they are driving businesses to be more focused on their customers than the regulator.”
Mr Bradley said that the Victorian consultation process showed that gas network businesses were trying to effectively engage with customers and to increase transparency in developing their proposals.
“Gas network incentives must support efficient expenditure through the regulatory period, ensure optimal levels of investment in network innovation can be delivered, and appropriately balance cost reduction and service delivery outcomes.
“These kind of reforms can encourage a strong focus on providing quality customer service including by better aligning incentives for gas businesses with desirable outcomes for customers,” Mr Bradley said.