Envestra Limited
(ASX:ENV) CEO Ian Little reportedly says more than half of the gas distributors $250 million annual capital outlay is at risk due to adverse rulings from the Australian Energy Regulator.
According to News Corp reports, up to $70 million of that figure was spent in Victoria, representing almost half of Envestra’s business.
Mr Little says the company has drawn up cost cutting focused alternate business plans to counter expected further unreasonable ruling from the regulator.
Mr Little laments the fact that if company’s don’t get reasonable regulatory outcomes, they just can’t fund spending plans.
The Australian Energy Regulator took over pricing controls in 2009 and made cuts on the gas industry’s permitted operating costs and capex strategies.
Envestra generated a net profit $73.9 million for the 2012 financial year.
