Regulatory developments in gas

transmission to bring in more

supply to the market

Australian Domestic Gas Market Conference

Euan Morton

16 March 2017

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Evolution of Australian Pipelines

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Timeline of reform

1993

Hilmer Report

Recommended

implementation of National

Competition Policy,

including

Corporatisation of

government owned utilities

Third party access

Legislation review

1997

Gas Code

introduced

1995

Victoria DB Sales

National Access Regime

introduced in Trade

Practices Act

National Competition

Council established

COAG signs the three

intergovernmental

agreements that create

the NCP

1992

Council of Australian

Government (COAG)

established

1994

Office of Regulator-

General (Victoria)

established

1996

National

Electricity Law

introduced

1998

Productivity

Commission

established

National Electricity

Market commences

operations

20001980 19901985 1995Tariff Reductions

2008

National Gas

Law introduced

2006

COAG review of

National

Competition Policy

Resulted in

Competition and

Infrastructure

Reform Agreement

AER, AEMC,

AEMO

established

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Examination of the current regulatory test

Key recommendations:

1. Transparency &

pricing principles

2. Binding commercial

arbitration

3. GMRG be tasked

to develop detail

4. No change to

current coverage

test at this stage

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Three sets of issues arise from the

broader gas reform program

Transparency

& pricing

principles

Binding

commercial

arbitration

Capacity

auctions

Important to consider cumulative impact of reforms

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Beware of unintended consequences