Envestra : Consumers to benefit from deregulation of Wagga Wagga gas network

9 April 2014

Consumers to benefit from deregulation of Wagga Wagga gas network

Envestra Limited welcomes the decision by the NSW Minister for Resources and Energy, the Hon. Anthony Roberts MP, to revoke regulatory coverage of the Company's Wagga Wagga gas distribution network, effective immediately. The impact of this decision is that gas distribution charges for the region will no longer be regulated by the Australian Energy Regulator (AER).
The Wagga Wagga gas distribution network serves around 20,000 consumers and accounts for about 2% of Envestra's revenues.
Managing Director, Ian Little said, "The revocation decision will not materially affect Envestra's revenue, or financial performance, but represents an important step in removing the regulatory burden on business, where it is not warranted."
"We intend to pass on to gas consumers in the region the saving in regulatory costs arising from this decision, estimated to have otherwise been in excess of $1 million in the coming year."
"Envestra intends to limit any adjustment to its distribution charges for the 5-year period commencing 1 July 2014 to no more than the annual rate of inflation, and will continue to publish on its website the charges and terms and conditions governing access to the network."

For further information, please contact:

Des Petherick, Company Secretary
Telephone: [phone]

About Envestra

Envestra is one of Australia's leading natural gas distribution businesses.

The Company owns gas distribution networks in South Australia, Victoria, Queensland, New South Wales and Northern Territory which deliver this environment friendly fuel to almost 1.2 million consumers.