The Australian Competition and Consumer Commission today issued its decision to approve APT Petroleum Pipelines Ltd's amended, revised access arrangement for the Roma to Brisbane gas pipeline.
Australian Energy Regulator* Chairman, Mr Steve Edwell, said APTPPL had submitted an amended, revised access arrangement which complied with the ACCC's requirements.
"The outcome follows extensive consultation with users and APTPPL and demonstrates that the interests of both have been balanced in the regulatory process."
"The ACCC agreed to set the value of the pipeline $45.3m above the amount it determined in its earlier decision because APTPPL had satisfied it that users which had made capital contributions as part of past expansions of the pipeline can negotiate for discounts below the reference tariff in the future."
The reference tariff for the pipeline services will initially be set at the level proposed by APTPPL but will decline over time in real terms consistent with the tariff path determined by the ACCC.
The access arrangement submitted by APTPPL removes the need for expensive litigation which has been a feature of past gas access regime arrangements.
"This outcome will benefit both investors and service users. The decision also confirms the importance of the Gas Code's dispute resolution arrangements," Mr Edwell said.
"The ACCC has accepted an APTPPL proposal that access to expanded capacity of the pipeline would be negotiated with users. This is seen as the best way to achieve timely expansion of the pipeline, reflecting the current uncertainty with costs, timing and capacity of expansions."
The ACCC has also accepted that services, other than forward haul on the existing pipeline, should be negotiable. These could include backhaul, interruptible and park and loan services. Prospective users will be able to use the dispute resolution arrangements should negotiations not provide access to these services on a timely basis."
The revised access arrangement will have effect from 12 April 2007.