How our pricing works

Like most energy distribution network businesses in Australia, the prices we charge are regulated.

Every 5 years, we propose a price and services plan with the Australian Energy Regulator (AER) and the total revenues we require to deliver that plan. The regulator evaluates this proposal to ensure the prices we charge are reflective of our costs and that we are managing our business efficiently.
 

Our 2020-2025 Plan

What Jemena Gas Networks will deliver over the 2020-25 period

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On 5 June 2020, Jemena welcomed the Australian Energy Regulator’s (AER) Final Decision on its pricing proposal for the 2020-2025 period.

The AER confirmed that from 1 July 2020, the amount charged for the distribution of gas to homes and businesses via the Jemena Gas Network in New South Wales will fall. The gas distribution charge is typically 35 percent to 40 percent of a residential gas bill.

A typical NSW residential customer is set to save $254 (19%) over the next five years, and those living in regional areas, who typically consume more natural gas, will save around $369 over the next five years. The savings for small and medium commercial customers will be approximately $1,585 and $15,516 respectively over the next five years.

In addition to cost savings, the 2020-2025 period will also deliver customer benefits through improvements to the Jemena Gas Network (JGN), including:

•    Maintaining the safety and reliability of the network
•    Connecting more than 145,000 homes and businesses to the network
•    Streamlining customer experience
•    Renewing 105 kilometres of mains to avoid costly leaks and maintain safety and reliability.

We presented our proposal for the 2020-2025 period after an extensive customer engagement program across New South Wales. This included multiple meetings across suburban Sydney and regional NSW. We gave customers an opportunity to say what they wanted and they were clear in their expectations of wanting access to natural gas for cooking, heating and hot water at a fair price, and that is what we have delivered.

To read the AER’s Final Decision media release, visit here.
To watch the Jemena Gas Network engagement forum video, click here.

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Customer consultation

To ensure customers had the opportunity to influence gas distribution costs over the next five years, we arranged a series of deliberative forums commencing in 2017 through to March 2019, across the Jemena Gas Network.

Customers met with members of our Board and Leadership Team, other senior managers and staff to have the opportunity to have their say on issues of affordability, reliability and the sustainability of our gas network. It was a consultative and inclusive process from beginning to end and lead to our Plan being ultimately supported by our customers.

 

Connecting with diverse customers

We held two customer consultation sessions designed specifically for customers from Culturally and Linguistically Diverse (CALD) backgrounds in Sydney. These sessions were organised in conjunction with the Ethnic Communities Council of NSW (ECCNSW) a member of Jemena's Customer Council.

In an energy-industry first, the sessions were held completely in Arabic and touched on a range of themes related to Jemena's Gas Network. CALD customer feedback from these forums helped shape our proposal to the energy regulator.

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Keeping costs down and planning for the future

During consultations, customers highlighted that affordability of energy was a pressing issue, and through our proposal, we are doing our bit to bring down costs to ensure we deliver price reductions over the next 5 years.

We are also proposing to deliver more sustainable energy across our network by testing out new technologies such as the Jemena hydrogen trial in Western Sydney.