The Minister for Financial Services and Regulation, Joe Hockey, today moved to boost competition in the Australian Capital Territory's gas industry by certifying its Third Party Access Regime for Natural Gas Pipelines for 15 years.
The ACT regime provides a legal avenue for third parties (such as gas retailers and industrial users) to negotiate access to natural gas pipelines under the ACT's jurisdiction. Typically, this sort of infrastructure involves significant construction costs but is relatively inexpensive to use once in place.
"This decision will promote competition in the ACT gas industry with the prospect of greater choice, better service quality and lower prices for business and households," the Minister said.
The ACT regime will also provide incentives for pipeline owners to expand the market and provide innovative and competitive pipeline haulage services. The ACT regime is based on the National Gas Access Regime and complies with National Competition Principles.
"The National Gas Access Regime, endorsed in November 1997 by the Council of Australian Governments, is a key component of boosting competition in the natural gas sector. Enhanced competition will establish the basis for the best possible use of Australia's gas resources and the lowest possible prices for all gas consumers," the Minister said.
The framework established by the National Regime also aims to develop an integrated national gas market and an interconnected pipeline grid, allowing gas to be freely traded across jurisdictions.
The ACT Government submitted the Territory's access regime to the National Competition Council (NCC) for assessment. After examining the ACT's submission, the NCC have recommended it be certified as an effective access regime under Section 44N of the Trade Practices Act 1974.
A copy of the NCC's recommendation is available from its website at www.ncc.gov.au.