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ARTICLE · 04 SEPTEMBER 2016

Pipeline regulation in Australia: Is it broken or just misunderstood?

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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We discuss a recent decision of the Australian Competition Tribunal relating to gas pipelines.

AustraliaEnergy and Natural Resources
Thomas Jones (Formerly With Corrs Chambers Westgarth)
Thomas Jones (Formerly With Corrs Chambers Westgarth)
Dietrich Marquardt
Dietrich Marquardt
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Since April 2016, when the Australian Competition & Consumer Commission (ACCC) published its findings in the East Coast Gas Inquiry1 (Gas Inquiry) the media has been abuzz with discussion about whether the existing regulatory regime for pipelines is effective.2 The interest has been heightened in recent days with reports of the recent meeting of the Council of Australian Governments (COAG) on the Gas Inquiry.

One of the issues COAG has been considering is the ACCC's finding that the coverage criteria in the National Gas Law (NGL) (which determine the presence and level of regulation) need to be amended to prevent monopoly rents being extracted. A working group has reportedly been formed to formulate a new coverage test before the next COAG meeting this year.3

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