West Australians can expect lower gas prices after approval today of the West Australian Third Party Access Regime for Natural Gas Pipelines, the Minister for Financial Services & Regulation, Joe Hockey, said.
"This is a significant achievement of National Competition Policy," the Minister said. "Businesses and households are the winners from lower natural gas prices and improved choice."
Reforms in the West Australian gas industry have already seen huge cuts in gas transport tariffs. Following gas deregulation in the Pilbara in 1995, charges for large industrial users fell by more than 50 per cent. Gas prices from the West Australian Goldfields pipeline have fallen by 25 per cent due to competition in the gas supply market.
The WA regime is one of a number of important National Competition Policy reforms, which provide a legal avenue for companies to access 'nationally significant' infrastructure, like gas pipelines, airports, electricity grids and railway lines. Typically, this sort of infrastructure costs a lot to build but is relatively inexpensive to use once in place.
The National Gas Access Regime has been enacted in the West Australian regime as part of a 1997 agreement by Commonwealth, State and Territory Governments.
It sets out a uniform national framework for third parties, such as suppliers, retailers and users, to access natural gas pipelines for haulage services.
"The gas access regime will allow businesses to benefit from increased competition and productivity in the gas sector," the Minister said. "With the development of new pipelines, many households and businesses will have their first opportunity to be supplied with natural gas."
The WA Government submitted the States access regime for natural gas pipelines to the National Competition Council for assessment in March 1999.
A copy of the NCC's recommendation is available from at www.ncc.gov.au