The Essential Services Commission has updated its Gas Distribution Code of Practice code, which will take effect on 1 October 2024.
One of the key updates is introducing full upfront charging for residents and developers applying for a new gas connection from 1 January 2025.
A standard fee will be set for residential customers requiring a basic connection. A basic connection consists of a short service line and meter where gas mains are already laid past the property boundary. For any connection that is not a basic residential connection the charge will be based on full cost of connecting the property and the cost will vary with the nature of the connection.
Importantly, any application to reticulate a new estate with gas mains, will need to pay the full cost of that reticulation upfront. Homeowners will separately pay for remainder of the connection (the service line and meter) at a later date. Any application by developers to reticulate a new estate made before 1 January 2025, will be charged under the existing charging regime. Under the existing charging regime this reticulation is often done at no cost. However, where the cost of the reticulation is expected to exceed the additional tariff revenue AusNet will receive, then a capital contribution is required.
Industrial and larger commercial customers already pay an upfront cost for new gas connections, so no change is required for these customers.
For more information, visit the Essential Services Commission website.