Investor Presentaiton
Regulatory developments - COVID-19
Ausgrid participated in the ENA package to assist small business and residential customers for the three months
ended 30 June 2020. We are also discussing additional support options with the AER going forward
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Background
Key details
1 ENA relief package
⚫• Developed through consultation with retailers
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Key focus to provide immediate relief to retail customers - well
received by retailers with 22 retailers signed up
Combination of waiver and deferrals of network charges
Smaller retailers can defer 20% of all network charges in respect of
residential customers until September 2020 and receive a rebate for
residential customers in hardship and small businesses in financial
distress due to COVID-19
Larger retailers are able to defer network charges for residential
customers on hardship arrangements and will also receive a rebate
for distressed small business customers
Scheme ends on 30 June 2020
2
AER rule changes in response to COVID-19
AER has commenced work on potential rule changes in response to
COVID-19
Two rule changes are currently being examined
1. Extending payment terms from 10 days to up to 6 months where
a customer enters into a payment plan, deferred debt or other
hardship arrangement because of COVID-19
2. Ability to smooth true-ups for COVID-19 related revenue under-
recovery over multiple years or regulatory periods
The first rule change has been initiated by the AEMC and is under
consultation
Potential
impact
•
Measures have had an estimated $36 million¹ impact in FY20, most
of which is deferred revenue
$13 million waiver component, this revenue is forgone in FY20
$23 million deferral component, this revenue will be recognised
in FY20 but won't be received until September 2020
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Rule change 1 - AEMC has released a directions paper which limits
expected cash flow consequences of revenue deferrals to small
customers and small retailers. Ausgrid has boosted liquidity by
increasing the working capital facility limit in March 2020
Rule change 2 - Will enable networks to minimise potential for price
shocks
Applicability
to network
charges
31 Mar
2020
3 months
Better
Ausgrid Together
1. Estimates based on latest available data
30 Jun
2020
6 months +
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