The Australian Competition and Consumer Commission today issued its Final Decision approving NT Gas Pty Ltd’s ring fencing waiver application, again proving the flexibility offered by the Gas Code.
"The ACCC concluded that the cost of NT Gas complying with the ring fencing obligations - which prevent flows of information and personnel between related businesses in the gas industry - currently outweighs any associated public benefit", ACCC Commissioner, Rod Shogren, said today.
"The waiver therefore will enable NT Gas to share marketing staff with its subsidiary, NT Gas Distribution Pty Ltd (NTGD). In this particular instance, I am satisfied that this better reflects the spirit of the Gas Code".
Ring fencing is designed to assist the introduction of effective competition into industries traditionally supplied by integrated monopolies such as gas and electricity. It involves putting structures in place to prevent flows of information and personnel within an integrated utility and between related businesses. NTGD carries on a related business to NT Gas, of selling natural gas.
"It is important to note that the granting of this waiver will not preclude the ACCC from reviewing the situation if market conditions change substantially at any time in the future", Commissioner Shogren said.
The ACCC’s Final Decision is made under the National Third Party Access Code for Natural Gas Pipeline Systems, which included a public consultation process. It was established that customers of NT Gas were not opposed to the waiver.