CHANGES TO GAS ACCESS LEGISLATION—POLICY RATIONALE AND IMPLICATIONS FOR INDUSTRY

The introduction of a national gas access regime has coincided with a rapid expansion in the Australian market for gas transportation services. The threat of regulation and the approach of regulators, however, have influenced both the configuration of pipelines and the nature of transportation contracts. The recent introduction of reforms to the National Third Party Access Regime for Natural Gas Pipelines (Gas Access Regime), and to part IIIA of the Trade Practices Act 1974 (Cth), has the effect of introducing part but not all of the reforms recommended by the Council of Australian Governments’ Independent Review of Energy Market Directions, and the Productivity Commission’s Review of the Gas Access Regime. The principal amendments, relating to the insertion of an objects clause and the introduction of regulatory holidays for certain greenfield projects are also likely to influence the configuration of pipelines and the nature of pipeline contracts. These amendments are precursors to a major restatement of National Gas Access legislation that will, if enacted, have the effect of creating greater uniformity between the National Electricity Law and the regulatory environment that will apply to gas, but, will also open up the opportunity for pipeline owners and operators to submit to a lighter form of regulation.