Draft report

Review into the scope of economic regulation applied to covered pipelines: draft report

27 Feb 2018

The Australian Energy Market Commission (AEMC) has made a number of draft recommendations on the application of economic regulation to full and light regulation transmission and distribution gas pipelines. These draft recommendations are intended to strengthen the regulatory framework and in doing so lower the prices and improve service terms and conditions for pipeline users and gas consumers across Australia.

Previous AEMC reforms, such as the east coast gas review that the Gas Market Reform Group is currently implementing, have made it easier to buy and sell gas in the wholesale markets. This review adds to the AEMC's reform package by making it easier and less costly to move that gas to where it is most valued.

The regulatory framework that applies to natural gas pipelines plays an important role in supporting users to negotiate gas transportation agreements that meet their needs. It also aims to address concerns about potential monopoly pricing by pipeline service providers.

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