1. South Australian Energy Market Briefing A distributor’s view of the future of natural gas and regulatory changes required 17 June 2002

2. 2 Our World

3. 3 Growth opportunities for Envestra

4. 4 Transmission Acquisition/merger opportunities 50+ entities Generation (production) Distribution Gas NSW Vic SA Qld WA NT Retailing    Electricity Envestra’s operations 

5. 5 Regional projects considered (SA only) Projects will not materialize without Government support or a change in the rules

6. 6 Greenfield projects - the dilemma Under recovery Profitable

7. 7 Organic growth (SA only) Natural gas is a fuel of choice

8. 8 The benefits of natural gas * * + + Annual greenhouse gas emissions based on 200 litres daily water use + cool climate receives 60% solar contribution, e.g. Melbourne * warm climate receives 75% solar contribution, e.g. Brisbane Source: Global Warming: Cool It! A Home Guide to Reducing Energy Costs and Greenhouse Gases, Australian Greenhouse Office, 2000.

9. 9 Importance of SEA Gas Proposal

10. 10 Future prospects for natural gas Natural gas is a fuel of choice

11. 11 Four messages for Regulators (and Governments)