GAS

Gas transmission pricing changes in the pipeline

THE Australian government is backing legislative changes proposed by the Australian Pipeline Indu...

Gas transmission pricing changes in the pipeline

The government had originally introduced the Trade Practices Amendment (National Access Regime) Bill without referring to pricing principles.

But APIA spoke out against the omission late last year, saying it would make it easier for the government to alter the way gas transmission charges were calculated, therefore leading to more regulatory uncertainty.

APIA argued this would in-turn threaten future investment in essential infrastructure.

"It is vital that the pricing principles, as agreed by the Government (in its response to the Productivity Commission report), be included in the legislation in order to ensure the appropriate level of regulatory certainty needed for continued investment in essential infrastructure," APIA said at the time.

But APIA now says the government has accepted the pricing principles argument in its response to the 2001 Productivity Commission review of the National Gas Access Regime, according to the Australian.

In a submission to the Senate Economic Legislation Committee, APIA said the "principles are an important model for pricing in industry-specific regimes, including the gas regime, and would enhance the certainty transparency and accountability of the national regulatory processes for access pricing".

It is expected that the legislation will go to the Senate in March.

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