AusNet Services

AusNet Services is a major Australian energy infrastructure company that owns and operates regulated electricity and gas networks in the state of Victoria. It manages one of the largest electricity transmission networks in the National Electricity Market, delivering power to millions of customers across eastern Australia. The company also operates significant electricity distribution and gas distribution networks, playing a critical role in the state's energy security and transition. Its primary operations are centered in Melbourne but extend throughout regional Victoria.

History

The origins of AusNet Services trace back to the privatization of Victoria's energy assets in the 1990s following reforms by the Kennett Government. In 1995, the transmission assets of the former State Electricity Commission of Victoria were transferred to a new entity, which later became part of the Singapore Power group. Following a major corporate restructure and rebranding in 2006, the company was listed on the Australian Securities Exchange as SP AusNet. It was subsequently renamed AusNet Services in 2014. A significant chapter in its history concluded in 2022 when a consortium led by Brookfield Asset Management and Singapore Power successfully acquired the company, resulting in its delisting from the ASX.

Operations

AusNet Services operates across three primary regulated utility businesses within the National Electricity Market. Its electricity transmission business manages over 6,500 kilometres of high-voltage lines and cables, connecting generators like the Loy Yang Power Station to major load centers and interconnectors such as the Victoria – New South Wales Interconnector. The electricity distribution business delivers power to approximately 780,000 customers across eastern Victoria, including regions like Gippsland and the Yarra Valley. Its gas distribution business, which it fully acquired from Australian Gas Networks in 2021, operates a network serving over 700,000 customers in western Victoria, including major centers like Ballarat and Bendigo.

Corporate structure

AusNet Services is a proprietary company, ultimately owned by a consortium comprising entities managed by Brookfield Asset Management, Singapore Power, and the Canada Pension Plan Investment Board. Day-to-day operations are led by a Managing Director and an executive team based at its head office in Melbourne. The company's structure is organized around its core regulated asset divisions: electricity transmission, electricity distribution, and gas distribution. Each division is responsible for the maintenance, development, and commercial performance of its respective network assets under the oversight of the Australian Energy Regulator.

Regulation and ownership

As a monopoly infrastructure provider, AusNet Services is heavily regulated under the national framework governed by the Australian Energy Regulator and the Australian Energy Market Commission. Its revenue for network services is determined through five-year regulatory reset processes set by the Australian Energy Regulator. The company was historically publicly listed on the Australian Securities Exchange until 2022, when it was acquired and privatized by a consortium. This consortium is jointly controlled by funds associated with Brookfield Asset Management and Singapore Power, with significant investment from the Canada Pension Plan Investment Board.

Major projects

AusNet Services has been involved in several critical infrastructure projects to modernize Victoria's energy grid and support the integration of renewable energy. A flagship project is the Western Renewables Link, a proposed high-voltage transmission line intended to connect new renewable energy zones in western Victoria to the National Electricity Market. The company is also a key partner in the EnergyConnect project, developing new interconnector capacity between South Australia and New South Wales. Other significant investments include ongoing programs to replace aging infrastructure, enhance network resilience against bushfires, and deploy advanced metering infrastructure across its distribution networks.