Caution on plan to speed up pipeline reforms

living-with-pipelinesSpeeding up the introduction of gas market reforms may have unintended consequences, APGA National Policy Manager Steve Davies told the Australian Domestic Gas Outlook Conference.

The Federal Government announced on Wednesday that the schedule for the two sets of reforms would be accelerated.

The reforms include legislating binding commercial arbitration for access seekers unsatisfied with negotiations; mandating day-ahead capacity auctions for contracted but unused capacity; contract standardisation; new levels of pricing transparency; and advanced capacity trading platforms.

“It’s not clear that the interactions across multiple reforms have been well thought through,” Mr Davies said.

“Many stakeholders don’t appear to understand the level of intervention being imposed on pipelines.

“High levels of intervention through multiple reforms imposed in rapid timeframes create danger of unintended consequences.

“The pipeline industry has demonstrated its capacity to deliver timely, efficient investment. This could be jeopardised if reforms are rushed.”

See the Pipeline capacity reforms presentation.

Last updated on 17 Mar 2017 by kpolglaze