The Australian Competition and Consumer Commission has authorised market arrangements designed to benefit consumers by promoting more efficient and competitive retail gas markets.
The Retail Energy Market Company (REMCo) is required to publish rules that currently govern the conduct and operations of the retail gas markets in South Australia and Western Australia.
The Retail Market Rules are designed to provide efficient arrangements for customers to transfer between retailers. The swing service provisions of these rules enable gas pipeline users to borrow and loan pipeline capacity. There is an incentive for users to be accurate in their daily gas forecasts as the swing service requires them to pay for inaccuracies.
"The ACCC considers the swing service provisions will contribute to more efficient gas retail markets in Western Australia and South Australia," ACCC Chairman, Graeme Samuel, said.
Authorisation provides protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC has granted authorisation to the REMCo arrangements for 10 years in Western Australia. In South Australia, the ACCC has granted authorisation for 10 years or until the Australian Energy Market Operator takes over REMCo's operations (currently scheduled to take place on 1 October 2009).
The ACCC's determination will be available from the ACCC website and by following the links to this matter.