Competition in Gas Pipeline Markets: International Precedent for Regulatory Coverage Decisions
Prepared for the National Competition Council of Australia
The National Competition Council (NCC) is in the process of considering whether the Eastern Gas Pipeline (EGP) owned by subsidiaries of Duke Energy International (Duke) should be “covered” under the National Third Party Access Code for Natural Gas Pipeline Systems. The application for coverage of the EGP was filed by AGL Energy Sales and Marketing Limited, the current majority owner and operator of the EAPL pipeline. EAPL is the incumbent pipeline serving NSW. EAPL has indicated that it may apply to the NCC for revocation of coverage. Coverage under The Code would imply that the EGP’s pricing and services would be governed by the regulatory regime specified in The Code, under specific rules promulgated and administered by the Australian Competition and Consumer Commission (ACCC). As an alternative to such regulation, Duke has filed an Undertaking to the ACCC under section 44ZZA of Part IIIA of the Trade Practices Act, which sets out for ACCC approval Duke’s “voluntary” third party access arrangement under which it would operate if not covered by the Code.
