GAS

Investment risks in the pipeline

FUTURE investment in long-distance gas pipelines is under threat if draft legislation that reduce...

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“If the government gets this legislation wrong by both removing the regulatory model that is in the current Gas Code and failing to allow enough time to fully consult and consider industry issues, it will put at risk investment in future gas transmission infrastructure,” APIA chief executive Cheryl Cartwright said on Friday.

“While the Ministerial Council might want to focus on reducing costs to consumers – as it should – these same consumers will not thank governments that fail to ensure the supply of energy into the future.”

Cartwright’s comments follow a Ministerial Council on Energy meeting in Darwin last week that decided to delay release of draft legislation for consultation, and also to remove a regulatory right currently held by the gas industry.

“It is critical that this legislation introduce less intrusive regulation for energy industries and also allow for the significant and important differences between gas transmission and the other energy sectors,” she said.

“While industry accepts that complex legislation does take time to prepare, such a delay should not mean less time for consultation with industry in order to meet a pre-arranged timetable.”

Cartwright called on the government to accept the current regulatory model of the Gas Code, which she said defines the role of regulator, maintains the current right to appeal regulatory decisions and allow “reasonable time” for consultation with industry.

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