The Australian Gas Light Company and the Australian Competition and Consumer Commission have agreed on arrangements to promote competition in the newly competitive NSW natural gas market.
Access to transmission and distribution gas networks was perceived by the Council of Australian Governments as being essential to foster competition and promote free and fair trade in the supply of gas to industry and consumers and to allow other gas suppliers access to the market. The introduction of access arrangements in NSW through the recent determination, effective 1 August 1997, by the Independent Pricing and Regulatory Tribunal is an integral part of that process.
AGL had previously agreed to a transition timetable with the NSW regulator, the IPART, allowing third parties to transport gas through AGLs NSW distribution system.
A small number of industrial gas users terminated their gas supply agreements with AGL in anticipation of the implementation of the IPART determination by 1 July 1997. Since termination, those customers have been supplied on interim supply arrangements. Concerns had been raised with the ACCC about the potential application of the Industrial and Commercial Tariff to these users prior to 1 December 1997. Following discussions with AGL and the ACCC, AGL has agreed to extend interim pricing arrangements for delivered natural gas until 1 December 1997 for those customers.
AGL has acted quickly and co-operatively to allay the ACCCs concerns, Acting ACCC Chairman, Mr Allan Asher, said today. AGL are to be complimented on their speedy, sensitive and market-based resolution of the issues.
These matters deal, not with network transport charges as approved under the recent IPART determination, but with the actual delivered price of natural gas.
Other matters agreed upon by the ACCC and AGL are:
a process to resolve any similar issues which may have arisen with other customers in relation to potential application of the Industrial and Commercial Tariff and AGL will be writing to relevant customers shortly; prior to 1 December AGL shall not make any representations as to the ability or likely ability of any competitor or potential competitor to AGL to obtain and resell gas supplies; that other customers will be provided with at least two months notice of any proposal to supply them at the Industrial and Commercial Tariff Rate.
The ACCC is conscious of the need to ensure that effective competition is established in national markets such as gas, electricity and telecommunications, Mr Asher said. This agreement is indicative of the ACCCs approach to ensuring competition in nationally significant markets for the benefits of both industry and in the long term consumers.
For further information about this media release: Mr Allan Asher, Acting Chairman, (02) 6264 1138 Ms Lin Enright, Director, Public Relations, (02) 6243 1108 Mr Bill McLaughlin, Group Manager Corporate Affairs, AGL, (02) 9922 8289
Access to transmission and distribution gas networks was perceived by the Council of Australian Governments as being essential to foster competition and promote free and fair trade in the supply of gas to industry and consumers and to allow other gas suppliers access to the market. The introduction of access arrangements in NSW through the recent determination, effective 1 August 1997, by the Independent Pricing and Regulatory Tribunal is an integral part of that process.
AGL had previously agreed to a transition timetable with the NSW regulator, the IPART, allowing third parties to transport gas through AGLs NSW distribution system.
A small number of industrial gas users terminated their gas supply agreements with AGL in anticipation of the implementation of the IPART determination by 1 July 1997. Since termination, those customers have been supplied on interim supply arrangements. Concerns had been raised with the ACCC about the potential application of the Industrial and Commercial Tariff to these users prior to 1 December 1997. Following discussions with AGL and the ACCC, AGL has agreed to extend interim pricing arrangements for delivered natural gas until 1 December 1997 for those customers.
AGL has acted quickly and co-operatively to allay the ACCCs concerns, Acting ACCC Chairman, Mr Allan Asher, said today. AGL are to be complimented on their speedy, sensitive and market-based resolution of the issues.
These matters deal, not with network transport charges as approved under the recent IPART determination, but with the actual delivered price of natural gas.
Other matters agreed upon by the ACCC and AGL are:
a process to resolve any similar issues which may have arisen with other customers in relation to potential application of the Industrial and Commercial Tariff and AGL will be writing to relevant customers shortly; prior to 1 December AGL shall not make any representations as to the ability or likely ability of any competitor or potential competitor to AGL to obtain and resell gas supplies; that other customers will be provided with at least two months notice of any proposal to supply them at the Industrial and Commercial Tariff Rate.
The ACCC is conscious of the need to ensure that effective competition is established in national markets such as gas, electricity and telecommunications, Mr Asher said. This agreement is indicative of the ACCCs approach to ensuring competition in nationally significant markets for the benefits of both industry and in the long term consumers.
For further information about this media release: Mr Allan Asher, Acting Chairman, (02) 6264 1138 Ms Lin Enright, Director, Public Relations, (02) 6243 1108 Mr Bill McLaughlin, Group Manager Corporate Affairs, AGL, (02) 9922 8289