ACCC, AER issue gas access arrangement process guideline

The Australian Competition and Consumer Commission today issued its Access Arrangement Process Guideline.

The guideline has been prepared to advise service providers and other interested parties on ACCC and Australian Energy Regulator processes to meet the access arrangement approval requirements of the Gas Code including arrangements to conclude approvals within the specified six month time period.

The ACCC currently regulates natural gas transmission pipelines under the Gas Code. However, governments have agreed that this function will be undertaken by the AER, along with regulation of natural gas distribution pipelines. In developing this guideline, the ACCC has been assisted by advice from the AER.

"While there are plans for adjusting the gas access law and the Gas Code, it will be some time before these processes are complete", AER Chairman and an associate ACCC Commissioner, Mr Steve Edwell, said. "In the interim, this guideline will assist service providers and other interested parties to understand the current assessment process which may result in a reduction of assessment timeframes".

The guideline is available on the AER website or by contacting the Access Branch Administrative Officer on 02 6243 1233.

Background

The Gas Code establishes a national regime for third party access to natural gas pipeline systems. Where a pipeline is covered, s. 2 of the Gas Code prescribes that a service provider is to establish an access arrangement which complies with the terms of the Gas Code. This access arrangement is a statement of policies and the basic terms and conditions which apply to third party access to the covered pipeline.

Under s. 2.43 of the Gas Code, the ACCC is obliged to issue a final decision within six months of receiving a proposed access arrangement or proposed revisions to an access arrangement. This guideline outlines an indicative six month timetable based on the assumption that the service provider submits all information and supporting documentation considered necessary to meet the terms and conditions of the Gas Code. While the ACCC has the power under the Gas Code to extend the six month timetable by up to two months at a time (ss. 2.21 & 2.43), it is cognisant of the desire for timely decision making.