Department/Agency
National Cabinet - Energy Ministers Meeting
Problem being addressed
The regulatory framework relating to gas pipelines has been subject to a number of reviews over the last five years. Through these reviews and the consultation undertaken as part of this RIS, a number of problems have been identified with the following elements of the regulatory framework:
- the threshold used to determine when a pipeline should be subject to economic regulation (including in relation to greenfield developments and pipelines that are not voluntarily providing third party access);
- the forms of regulation that can be applied to a pipeline if they are subject to regulation and how movements between the alternative forms of regulation occur;
- the governance arrangements applying to when to regulate and how to regulate decisions;
- the information disclosure obligations that service providers are subject to under the various forms of regulation; and
- the negotiation frameworks and dispute resolution mechanisms applying under the various forms of regulation.
Proposal
The reforms are intended to deliver a simpler regulatory framework that will continue to support the safe, reliable and efficient use of, and investment in, gas pipelines. The reforms are expected to provide:
- more effective constraints on market power by pipeline operators;
- better access to pipelines that would not otherwise provide such access;
- streamlined governance arrangements; and
- better support for commercial negotiations between shippers and service providers, through more transparency (including greater price transparency), and improvements to the negotiation framework and dispute resolution mechanisms.
RIS outcome
Compliant with Decision RIS requirements
Announcement date
3 May 2021
Announcement