The Parliamentary Secretary to the Treasurer, Chris Pearce, has today decided that the Tasmanian third party access regime for natural gas pipeline services is an effective access regime under the National Access Regime for a period of 15 years.
The Tasmanian regime provides a statutory avenue for third parties (such as gas retailers and industrial users) to negotiate access to natural gas pipeline services within Tasmania.
In particular, the Tasmanian regime allows for an independent regulator to approve access terms and conditions in advance for pipeline services covered by the regime through transparent and robust processes. Such regulatory guidance is designed to help guide negotiations and reduce the need for, and cost of, individual dispute resolutions. The regime also provides a mechanism for independent dispute resolution.
Certification of this regime as effective means that prospective users of pipeline services covered by the regime can no longer seek to gain access through the alternative route of having the service ‘declared’ under the National Access Regime.
‘This decision that the Tasmanian regime is effective will enhance regulatory certainty for all parties involved with providing and using gas pipeline services in Tasmania and should provide a positive environment for negotiation on access terms and conditions and further pipeline investment. This is another example of the National Access Regime delivering benefits to infrastructure investors and users,’ Mr Pearce said.
‘In adopting the National Gas Access Regime model, which all other jurisdictions have applied, the Tasmanian regime also provides a consistent framework for businesses operating in different jurisdictions.’
Mr Pearce’s decision accords with a recommendation by the National Competition Council (NCC) on this matter. The NCC conducted a public consultation process as part of its examination of the Tasmanian regime. Mr Pearce is satisfied that the consideration given by the NCC to its recommendation was careful and comprehensive.
Background
State and Territory governments may submit their access regimes to the NCC for a recommendation that a regime is ‘effective’ under the National Access Regime (Part IIIA of the Trade Practices Act1974).
A decision that a state or territory access regime is effective provides regulatory protection for services covered by the regime against the risk of declaration under the National Access Regime.
In October 2004, the Tasmanian Government applied to the NCC for a recommendation that its access regime for natural gas pipeline services was effective under the National Access Regime.
In February 2005, the NCC released a draft recommendation for comment and received no submissions in response.
In April 2005, the NCC made a final recommendation to Mr Pearce that the Tasmanian access regime for natural gas pipeline services should be certified as effective for a period of 15 years.
MELBOURNE
17 July 2006
Media contact: Gillian Harvey 03 9887 3890 or 0411 567 060