SP Ausnet charge increase blocked

Company News

SP AusNet (ASX:SPN) has been blocked by the Australian Energy Regulator (AER) from increasing charges to pay for its rollout of smart meters.
 
The AER enforced the decision in an effort to prevent over spending on the electricity network.
 
SP AusNet’s proposed expenditure for the rollout of the meters has also been cut back from $410.7 to $304.1 million.
 
The AER criticised the electricity distributor for not switching to cheaper technology to avoid a cost blow out.
 
According to the AER, the expenditure originally approved in 2011 would have been more than sufficient to cover the costs of switching to alternative technology.
 
SP Ausnet generated a net profit of $255 million in its 2012 financial year. 

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