The Australian Competition and Consumer Commission today issued its draft decision on the Roma to Brisbane pipeline* revised access arrangement.
In its draft decision, the ACCC proposed amendments to APT Petroleum Pipelines Limited's access arrangement.
Under the draft decision, the ACCC accepted an APTPPL proposal that access to the expanded capacity of the pipeline would be negotiated with users.
"This was accepted as the best way to achieve the timely expansion of the pipeline, reflecting the current uncertainty with costs, timing and capacity of expansions", Australian Energy Regulator** Chairman, Mr Steve Edwell, said.
For the first time since the gas code began in 1998 the reference tariff for the pipeline is being set by the ACCC. The ACCC's proposed reference tariff is 10 per cent less than that proposed by APTPPL. The tariff will apply to forward haulage using the existing capacity of the pipeline. As the pipeline is mostly fully contracted, potential users must wait until around 2012 before they can benefit from a lower reference tariff.
The lower tariff reflects the ACCC's decision that the pipeline's initial capital base should be $250.63 million rather than $346.2 million, as proposed by APTPPL.
Mr Edwell said the ACCC's value better reflected the requirements of the gas code. It allowed APTPPL to more than recover its investment in the pipeline.
APTPPL has agreed to establish an electronic register of spare and developable capacity and an electronic bulletin board to help users access details of the spare and uncontracted pipeline capacity. The arrangements will support the pipeline's timely expansion.
The ACCC proposes other services should be negotiable. These could include backhaul, interruptible and park and loan services. Prospective users will be able to use the dispute resolution arrangements under the code should negotiations not provide access to these services on a timely basis.
The ACCC invites written submissions in response to its draft decision by 25 September 2006. The draft decision is available on the AER website, www.aer.gov.au. The ACCC will take into consideration issues raised in submissions before issuing its final decision.