The Parliamentary Secretary to the Treasurer, Chris Pearce, has today decided that the Western Australian third party access regime for electricity network services is an effective access regime under the National Access Regime for a period of 15 years.
The Western Australian regime provides a statutory avenue for third parties (such as electricity retailers and industrial users) to negotiate access to electricity network services within Western Australia.
In particular, this Western Australian regime allows for an independent regulator to approve access terms and conditions in advance for 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 services covered by the Western Australian 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 Western Australian regime is effective will enhance regulatory certainty for all parties involved with providing and using electricity services in Western Australia and should provide a positive environment for further network investment and negotiations on access terms and conditions. This is another example of the National Access Regime delivering benefits to infrastructure investors and users.’ Mr Pearce said.
Mr Pearce’s decision accords with a recommendation by the National Competition Council (NCC) on this matter. The NCC conducted public consultation as part of its examination of the Western Australian 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 July 2005, the Western Australian Government applied to the NCC for a recommendation that its access regime for electricity network services was effective under the National Access Regime. In August 2005, the NCC released a draft recommendation for comment and received no submissions in response.
In October 2005, the NCC made a final recommendation to Mr Pearce that the Western Australian access regime for electricity network services should be certified as effective for a period of 15years.
MELBOURNE
17 July 2006
Media contact: Gillian Harvey 03 9887 3890 or 0411 567 060