The Australian Competition and Consumer Commission has approved a request to conduct a competitive tender to bring natural gas to the Loddon Murray region.
The Swan Hill Rural City, Gannawarra Shire and Loddon Shire Councils believe that a natural gas supply to the region would boost its attractiveness to business and residents and provide a competitive alternative to electricity and LPG. To progress supply to the region they formed the Loddon Murray Gas Supply Group.
On 30 August 2001, the Loddon Murray Gas Supply Group submitted a proposal to conduct a tender for the construction of a new gas pipeline system to the Loddon Murray area in north west Victoria. It includes a new transmission and distribution system that would serve, at a minimum, Swan Hill and Kerang.
Under the National Gas Code, the ACCC regulates transmission pipelines and must approve or reject applications to use a competitive tender process to determine charges and other terms. The Office of the Regulator General Victoria has parallel regulatory responsibilities for the distribution component. Once the tender has been conducted the proposed charges will be locked in for the first regulatory period.
"The ACCC is keen to ensure that the competitive forces surrounding the tender are strong enough to lead to the lowest sustainable prices", ACCC Commissioner for energy matters, Mr Rod Shogren, said today.
"A competitive tender should produce the best outcome for consumers and provide certainty for users and suppliers.
"The ACCC is working with the Office of the Regulator General Victoria as part of its continuing commitment to promote new pipeline developments in rural and regional areas. The decision shows that new projects are supported and encouraged by the regulatory framework".
Copies of the decision are available from the ACCC's website www.accc.gov.au under the Gas link. Once the tender has been conducted, the Loddon Murray Gas Supply Group can apply to the ACCC for final approval.