Australian Competition and Consumer Commission Chairman, Professor Allan Fels, today welcomed the Australian Competition Tribunal's decision to dismiss Duke Energy's appeal of the ACCC's decision on the Queensland Gas Pipeline (also known as the Wallumbilla to Rockhampton pipeline).
Duke had sought a review of the ACCC's decision to reject Duke's access arrangement (the terms and conditions on which other parties could transport their gas through Duke Energy’s pipeline), and instead issue its own. Duke argued before the Tribunal that the Queensland gas law removes the ACCC's power to include a provision in its access arrangement that would allow the ACCC to review substantial parts of the access arrangement if certain major events occur.
The Tribunal held that the ACCC retains the power to review non-price elements of Duke's access arrangement if an event such as the interconnection of a major new pipeline with the Queensland Gas Pipeline occurs.
"It is crucial that the ACCC retains the power to review non-price elements of the access arrangement before the first review date if justified by the occurrence of a major event", Professor Fels said today.
"Without the ability to review the access arrangement the important 'non-tariff' elements of the access arrangement would be effectively locked away until the first review, which may not occur until 2016. This would be to the detriment of business and, ultimately, consumers".