Ausgrid transformation key to network affordability

26 March 2018  

Ausgrid says energy customers will benefit from its ongoing network investment and operating strategies, including those contained in its upcoming submission to the Australian Energy Regulator (AER).

Ausgrid CEO Richard Gross says the business was finalising its 2019-24 regulatory submission for the AER that would help deliver a more affordable, reliable and sustainable supply of electricity to customers.

Commenting on the Grattan Institute’s report Down to the Wire: a sustainable electricity network, Mr Gross said: "Ausgrid fundamentally disagrees with Grattan's assessment of Ausgrid's network investment over the past decade. It is simply wrong.

The conclusions are driven by the time period over which the analysis is undertaken and provide no insight into whether Regulatory Asset Bases (RAB) are too big or too small,” Mr Gross said.

Ausgrid does agree with the Grattan Institute, Dr Alan Finkel and the broader investment community that stable regulatory environments are a pre-requisite for cost-effective investment, especially in facilitating the transition to a lower carbon future.

We need to make sure that we are an attractive, secure place to invest that does not change the rules on a whim. “Ausgrid’s customers want and expect affordable and reliable electricity. We believe we have the right business transformation strategies in place to help keep prices down.

Over the last 2 years we have reduced operational expenditure by $100 million per year.” “We have listened to customer concerns about affordability and we are working hard to continue to drive down costs and increase efficiencies so our customers benefit in the long term,” he said.