Regulation

One of APIA’s objectives is to improve the regulatory environment in which pipeline projects are developed, constructed and operated in Australia.

A key focus of APIA has recently been the development of the new National Gas Law.

The gas transmission industry has traditionally enjoyed less intrusive regulation than have the other energy sectors (gas distribution, electricity distribution and electricity transmission), with investment and expansions of capacity typically underpinned by bilateral contracts. Therefore, the new National Gas Law, although the initial draft has been improved, through input from APIA, introduces disadvantages for the gas transmission industry through introducing increased information-gathering powers for the regulator and extra hurdles in the review process.

With regard to economic regulation, APIA considers that a market-driven approach encourages the competitively priced supply of gas. APIA expects the market to evolve naturally, over time and in line with greater possibilities for trading provided by more interconnection and greater depth of suppliers, pipelines, and users. As such, APIA strongly supports policy measures that are consistent with this market-driven approach rather than a more interventionist and tightly regulated model, as is being driven under legislative changes currently underway.
APIA continues to consult with government to ensure appropriate policies are implemented for critical infrastructure projects such as gas transmission and water pipelines.

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