Multinet Gas (MG) announced today it has lodged an appeal relating to one aspect of the Australian Energy Regulator's (AER’s) final decision on MG's Gas Access Arrangement Review (GAAR) for the 2013-2017 period.

The AER's final decision was released on 15 March 2013 and confirmed in its “further final decision” process on 29 April 2013.

The AER's final decision excluded $30.5 million of (mostly) information technology capital expenditure incurred in 2012 from MG’s opening regulated asset base (RAB). This exclusion had the effect of reducing MG’s revenue by approximately $45 million over the 2013-2017 GAAR period.

The AER has not contested the efficiency and prudency of the capital expenditure and proposed that it be included in MG’s RAB at the next access arrangement review in 2018.

MG CEO Hugh Gleeson said: "The AER’s decision to defer recognition of part of our 2012 capital expenditure is inconsistent with the law and rules. As a result, the appropriate course of action is for us to appeal to the Federal Court and the Australian Competition Tribunal.

“We anticipate the appeal should be resolved by the end of 2013."

United Energy (UE) announced today that in addition to the A$400m raised on 24 April 2013, it has raised a further A$125 million with Westpac Banking Corporation via a forward starting five-year bank loan facility, maturing in April 2018.

The proceeds of this transaction will refinance a portion of UE’s pre-existing 2014 debt maturities.

UE CEO Hugh Gleeson said, “This second capital raising has been specifically structured to refinance a part of our October 2014 maturing debt on competitive terms. With this facility in place, we will have dealt with almost 60% of our 2014 maturities.”

United Energy (UE) announced today it has raised A$400 million via a five-year Asian syndicated bank loan facility, maturing in April 2018.

Financial close of this transaction is expected to occur later this month.

The proceeds of this transaction will primarily refinance a portion of UE’s pre-existing 2014 debt maturities.

UE CEO Hugh Gleeson said, “The size, tenor and competitive terms of this transaction demonstrate strong bank market support for UE. We have also established new banking relationships as part of this transaction, providing a broader base of support for future debt capital raisings.”

Multinet Gas (MG) notes the Australian Energy Regulator‟s (AER) final determination on its Gas Access Arrangement Review (GAAR) for the period 2013-17, which was released today.

MG is pleased to note that, relative to the draft determination, the AER‟s final GAAR determination resulted in a material increase in MG‟s capital and operating expenditure allowances. The decision sets MG‟s revenue requirement for the five year period at $863.6 million (nominal), which is a 10.5% improvement on the draft.

Multinet Gas (MG) notes the AER’s draft determination on our Gas Access Arrangement Review (GAAR) for the period 2013-2017 which was released yesterday.

Importantly, this draft determination is only the first step in a multi-stage process with the final determination not due for release until March 2013. MG has until 7 November 2012 to respond to the draft determination and will work closely with the AER to provide them with the additional expert information they need to better understand our position.

The five Victorian electricity distribution businesses, CitiPower, Jemena, Powercor Australia, SP AusNet and United Energy have delivered real price reductions and improved reliability to consumers since privatisation in the mid-1990s.

In a submission to the Senate Select Committee on Electricity Prices, Victoria’s electricity distributors outlined a number of key observations and constructive solutions based on their experience since privatisation.

Today United Energy (UE) announced it has issued a further A$65 million via its medium term note program at a fixed coupon of 6.25% per annum with a maturity of April 2017.

Settlement of the transaction is expected to occur today.

The proceeds will refinance a portion of UE’s A$260 million short term debt facility, which is currently drawn to A$92 million and matures in April 2014, and for general corporate purposes.

UE CEO Hugh Gleeson said: “This deal came about as a result of investor enquiries into our medium term note program. We are pleased with this continued investor confidence in UE.”

United Energy (UE) notes media reports in today’s Herald Sun and Geelong Advertiser suggesting the Victorian Government intends to introduce one-off legislation to close what it refers to as a ‘legal loophole’ relating to the 2010 cutover of state-based price regulation to the national framework under the Australian Energy Regulator.

If this proposed legislation is introduced, UE and other Victorian electricity distributors will not receive some of the appeal revenue they expected to receive over the coming three years. In particular, the portion of revenue related to UE’s S-factor appeal will no longer be included in the tariff calculation for the 2013-2015 period. The S-factor relates to incentive payments and penalties in connection with network performance.

UE has not yet had an opportunity to review any proposed legislation but notes via the media reports that the Government estimates the impact on UE’s 640,000 electricity customers will be $13.50 per residential customer in 2013.

UE supports the use of service incentive schemes and notes that, since privatisation, we have delivered significant benefits to Victorian customers including improved reliability of electricity supply.

DUET Group notes the attached release by United Energy regarding media reports of proposed one-off changes to legislation to be introduced by the Victorian Government. The changes relate to the cut-over from state based regulation to the national framework under the Australian Energy Regulator (AER).

Based on the Government’s estimates, the additional revenue awarded as a result of United Energy’s regulatory appeal earlier this year in relation to the network performance incentive scheme (‘S-factor’), will be around $8.6 million per annum lower than originally determined over the 2013 – 2015 period.

The AER is currently considering United Energy’s tariff proposal that will determine the allocation of the additional appeal revenue to calendar years 2013, 14 and 15. The AER is expected to publish its decision by November 2012.

Victoria’s five electricity distribution businesses (CitiPower, Jemena, Powercor Australia, SP AusNet and United Energy) today welcomed the Victorian Government’s decision to continue the rollout of smart meters to Victorian homes and businesses, with the announcement providing much needed clarity on the future of the rollout.

Speaking on behalf of the five Victorian electricity distribution businesses, Energy Networks Association (ENA) Chief Executive Malcolm Roberts said: “Upgrading Victoria’s electricity infrastructure to smart meters is the right decision now and in the long term for consumers.”

The five Victorian electricity distributors remain confident that the roll out of the Advanced Metering Infrastructure (AMI) program – or “smart meters” - is safe.

In April this year, Energy Safe Victoria, completed a comprehensive investigation into smart meters and their installation, and found that “meters are being installed safely and by qualified and trained people.”

The installation of 850,000 smart meters across Victoria so far has uncovered an estimated 6,500 faults in customer electrical wiring and other defects that have been fixed as a result of the AMI installation process...

The five Victorian electricity distribution businesses, CitiPower, Jemena, Powercor Australia, SP AusNet and United Energy have assured all Victorians that they will continue to make every endeavour to respect customers’ wishes to defer the installation of a smart meter at their property while the State Government completes its review of the advanced metering infrastructure or “smart meter program”.

The Distributors are legally obliged to roll out advanced metering infrastructure to all customers across Victoria. The Government has advised that the roll out should continue during its review...

United Energy (UE) notes that the Australian Energy Regulator (AER) has released its draft determination on UE’s Advanced Metering Infrastructure (AMI) 2012-15 budget application. The final determination is due for release on 31 October 2011 and UE will provide a formal submission addressing the draft determination within the prescribed timeframes.

The draft determination provides for significantly lower forecast operating and capital expenditures compared with UE’s proposed budget application, resulting in a revenue allowance for the 2012-2015 period that is 8.1% lower than UE’s submission...

Today United Energy (UE) announced it has appointed Tenix as service provider of operational services to its southern region, effective 1 January 2012.

This announcement follows UE’s statement on 4 February 2011, advising that it had signed a new contract for operations delivery with Jemena for services to UE’s northern region, in addition to Jemena providing some other services on a transitional basis...

United Energy Distribution (UED) notes the Australian Energy Regulator’s (AER) draft distribution determination released on Friday 4 June 2010. UED will engage with the AER in response to the draft and provide further information and submissions over the coming months. The AER’s final determination is due to be released at the end of October 2010.

The draft determination, which is subject to further public and industry review, indicates capital expenditure 33% below the levels UED has proposed...