The Australian Competition and Consumer Commission has finalised its review of ring fencing compliance reports submitted by owners and operators of regulated gas transmission pipelines and is satisfied that they meet the reporting requirements imposed by the Gas Code*.
Eight companies submitted compliance reports to the ACCC this year. These companies own and operate high-pressure transmission pipelines, transporting the vast majority of natural gas from supply fields to industrial and commercial markets. The ACCC regulates the majority of interstate gas pipelines under the Gas Code and requires companies to submit annual 'ring fencing' compliance reports.
Ring fencing involves putting structures into place to prevent anti-competitive behaviour such as the sharing of information and personnel and cost shifting between related businesses, by separating or ring fencing the regulated activity where appropriate. Because gas pipelines have traditionally been owned and operated by integrated monopolies, ring fencing is an important aspect of the ACCC's role in gas regulation.
This is the second year of a continuing ongoing process in which the ACCC has been monitoring compliance with ring fencing obligations by assessing annual reports submitted by transmission companies. The ACCC considers that the reporting process has increased transparency for users and regulators as to the procedures that each transmission company has in place to prevent anti-competitive conduct in accordance with the Gas Code requirements.
"Ring fencing limits the scope for anti-competitive behaviour in the gas industry and aims to ensure that all companies compete on a level playing field", ACCC Commissioner responsible for energy matters, Mr John Martin, said today.
"The ACCC has been mindful of balancing its regulatory responsibilities with the costs of compliance", Mr Martin said. "The ACCC has obtained assurances from the board of directors of all eight companies that the reports are accurate and is satisfied that they have met their reporting obligations for this year".
*National Third Party Access Code for Natural Gas Pipeline Systems.