Some proposals improve transparency, others less helpful
Initiatives in the COAG Energy Council Regulatory Impact Statement on Measures to Improve Transparency in the Gas Market are in some areas a step in the right direction, APGA said in its submission to consultation on the RIS.
The RIS proposes transparency reforms to all parts of the gas sector rather than just focusing on pipelines and APGA welcomes efforts to improve transparency provided that they result in net benefit to consumers.
However, APGA has concerns over a recommendation that companies should be required to provide AEMO with information on ‘proposed’ or ‘committed’ infrastructure development projects.
Reporting information on proposed infrastructure developments in these circumstances will only serve to create market noise and additional uncertainty in the gas market. The information is subject to change at any time – companies can and do decide against proceeding with new proposals at any point in the development process – and is therefore unreliable.
· Unreliability of this information is compounded by likelihood that multiple companies in the competitive gas pipeline sector will be considering a potential new pipeline route simultaneously.
· For example, there is currently a lot of activity around potential new pipelines to open up or further develop the Beetaloo, Galilee and Bowen basins. It is unclear which of these would be included as ‘proposed’ in accordance with the recommendation.
· Requiring companies to disclose “proposed” infrastructure developments also exposes them to reputational risk and hinders freedom to consider new projects and undertake necessary due diligence before making position public.
Read more in the submission.