Examination of the current test for the regulation of gas pipelines

On 19 August 2016, the Energy Council (the Council) released a comprehensive Gas Market Reform Package responding to the findings and recommendations of the Australian Energy Market Commission’s (AEMC) Eastern Australian Wholesale Gas Market and Pipelines Framework Review: Stage 2 Final Report and the Australian Competition and Consumer Commission’s (ACCC) Inquiry into the East Coast Gas Market.  

A key component of the reform package was examining, in consultation with stakeholders, whether a new test for determining if a gas transportation pipeline should be subject to economic regulation is needed. Dr Michael Vertigan AC was appointed to undertake the examination and was tasked to report back to Energy Ministers at the December 2016 Council meeting.

A consultation paper was released on 4 October 2016 seeking stakeholder feedback responding to the relevant findings of the ACCC Inquiry, the significance of the problems identified, the effectiveness of the existing regulatory test, the appropriateness of the ACCC’s proposed market power test and, if a change in regulatory arrangements is warranted, alternative means of achieving this.  Submissions closed 18 October 2016.

The final report of the Examination of the current test for the regulation of gas pipelines was released on 14 December 2016, and is available in the file list below.

The Energy Council response to the report can be found in the December meeting Communique.

Related publications

• 8th COAG Energy Council meeting communique - 14 December 2016
• 5th COAG Energy Council meeting communique – 19 August 2016
• COAG Energy Council Bulletin No 2: Gas Market Reform Package
• Gas Market Reform Package Appendix A: Energy Council response to ACCC and AEMC’s reports
• Gas Market Reform Package Appendix B: Governance Arrangements and Indicative Implementation Schedule
• COAG Energy Council Australian Gas Market Vision (December 2014)
• National Gas Law Amendment Package - Pipelines Access Arbitration 

Submissions:

All stakeholder submissions received in response to this consultation process are available below, excluding where stakeholders clearly indicated that a submission should remain confidential, either in whole or in part.
Submissions were received on a confidential basis by the following stakeholders:

• Blue Energy
• EnergyAustralia
• ERM Power
• Senex Energy
• Tas Gas Retail