Economic Regulation
Gas transmission pipeline regulation
Australia has a national, industry specific access regime in place which governs third party access to natural gas pipeline systems. This national regime is contained within the NGL which includes the National Gas Rules 2008 (“Gas Rules”). The NGL and Gas Rules set out principles for third party access to natural gas transmission and distribution pipeline systems throughout Australia. The NGL and Gas Rules establish the rights and obligations of pipeline owners and users in relation to ‘covered’ (i.e. regulated) pipelines and provide a mechanism for third parties to obtain access to covered pipelines within an independent regulatory framework, including a resort to arbitration to resolve access disputes. The Gas Rules aim to provide a degree of certainty as to the terms and conditions of access to the services of covered pipelines in the event of a dispute, while preserving the ability for parties to negotiate access on commercial terms. Key features of the NGL and Gas Rules are discussed below.
Coverage
The third party access rights and obligations of pipelines owners and users contained in the NGL and Gas Rules only apply to pipelines that are covered. Certain pipelines were automatically covered when the regime commenced and other pipelines may become covered if they meet certain criteria set out in the Gas Rules. Covered pipelines may also become ‘uncovered’ if they no longer meet those criteria.
Access Arrangements
Under the Gas Rules, the owner or operator of a covered pipeline must submit a compliant access arrangement (“Access Arrangement”) to an independent regulator for approval. A full Access Arrangement must set out the terms and conditions of access, including the pipelines to which the Access Arrangement relates, proposed pipeline services that are likely to be sought by a significant part of the market (“Reference Services”), tariffs for those Reference Services (“Reference Tariffs”), capacity trading requirements, queuing requirements (if applicable) to determine user priorities for spare capacity, how the pipeline is to be expanded or extended, and how access requests are to be dealt with. A more limited Access Arrangement can be lodged for ‘Light Regulation’ pipelines. The regulator undertakes a consultation process in deciding whether to approve a proposed Access Arrangement and may require amendments. These Access Arrangements are subject to periodic revision.
The Australian Energy Regulator (“AER”) regulates covered gas transmission pipelines in Australia (except those in Western Australia, which have a state-based regulator).
South West Queensland Pipeline
Coverage of Epic Energy's South West Queensland pipeline was revoked by the then Minister for Energy, the Hon Geoff Wilson MP on 2 July 2008. As such, an Access Arrangement is not required for this pipeline. For a summary of the services provided on our pipelines and the associated key terms, please contact Epic Energy's General Manager Commercial on (03) 8626 8466 for more information.
Moomba to Adelaide Pipeline System
On 15 March 2005, Epic Energy filed an application with the National Competition Council (NCC) for revocation of coverage of the Moomba to Adelaide pipeline system. The NCC undertook a comprehensive public consultation process, consistent with its obligation. On 16 September 2007, the South Australian Minister for Energy, the Hon. Patrick Conlon MP, released his decision to revoke coverage of the MAPS. The revocation took effect from 1 October 2007.
As this pipeline is not covered, an Access Arrangement is not required. For a summary of the services provided on our pipelines and the associated key terms, please contact Epic Energy's General Manager Commercial on (03) 8626 8466 for more information.
Pilbara Pipeline System
The Pilbara Pipeline System is not covered. Given this, an Access Arrangement is not required. For a summary of the services provided on our pipelines and the associated key terms, please contact Epic Energy's General Manager Commercial on (03) 8626 8466 for more information.
South East Pipeline
The South East Pipeline System is not covered. Given this, an Access Arrangement is not required. For a summary of the services provided on our pipelines and the associated key terms, please contact Epic Energy's General Manager Commercial on (03) 8626 8466 for more information.
