South Australians are set to pay less for gas, with the average household to save $47 from next year.

Australian Gas Networks Ltd (AGN) is proposing to cut its distribution charges which it says account for about half of the average domestic gas bill.

The 11 per cent fall would apply from 1 July next year.

The lower charges have been submitted to the Australian Energy Regulator by AGN as part of its plans for the SA gas distribution network over the five-year period from 1 July 2016.

AGN chief executive officer Ben Wilson said the company was “very conscious that the cost of living, including utility bills, is a major concern for many people in South Australia”.

“Distribution prices make up for around half the average domestic natural gas bill, so we have a role to play in the affordability challenge.”

AGN’s submission to the regulator also includes plans to replace all cast iron and old steel gas mains in the network by 2021, as well as replace the “oldest” plastic mains.