Following the Western Australian energy regulator’s final decision on access arrangements for gas distribution systems, agn) says its tariffs for gas distribution over 2006 – 2009 should fall annually by 0.4% and will remain at their current level for 2005.

The ERA yesterday released its final decision on the terms and conditions, including prices, for third-party use of the mid-west and south-west distribution systems owned by AGN.

The main change in the final decision from the draft released on February 28 was an increase in the real pre-tax rate of return from 6.5% to 6.6%. AGN had sought a 7.75% rate of return.

Since May 31 2004, the market for small-use gas customers has become contestable. The access arrangement sets out the terms and conditions, including tariffs, under which retailers may transport gas to all customers, including small-use customers.

The AlintaGas Networks gas distribution systems consist of about 11,300 kilometres of pipelines, which distribute natural gas sourced from the Dampier-to-Bunbury Natural Gas Pipeline and the Parmelia Pipeline to industrial, commercial, small business and residential customers in the mid and south western coastal areas of Western Australia.

The distribution systems stretch from Perth to Geraldton in the north and to Busselton in the south.