The proposed reforms include removing state-based regulatory reforms to establish a single national gas market operator to manage both the wholesale and retail gas markets.
“The industry fought hard to retain the right to appeal against a decision by the national regulator but it now appears that new conditions attached to that appeal mechanism could disadvantage the gas industry,” APIA chief executive Cheryl Cartwright said.
“Industry is also concerned about policy changes that will give the national regulator greater control over commercial decision making by gas pipeline owners.”
Cartwright said the APIA’s board raised a number of issues with Federal Industry Minister Ian Macfarlane before he addressed attendees at an APIA lunch in Brisbane yesterday. She said he assured there would be full consultations before legislation was introduced to parliament.
Macfarlane also told the attendees at the lunch that increasing local use of natural gas was a high priority for the Government.
“Gas production in Australia is expected to increase by 6-7% a year for the next 20 years,” he said.
“But I will be pursuing a reform process to increase that growth, hopefully by another 10% or so, on an annual basis.”
He also said a draft of the new National Gas Law would be released soon, which will detail $A4.2 billion worth of major gas pipelines either planned or currently under construction.
