Australian Pipeline Trust (ASX Code: APA) has welcomed today’s decision by the
Australian Competition Tribunal to uphold its appeal against the Australian Competition and Consumer Commission’s determination on the Moomba to Sydney Pipeline Access Arrangement.
The Tribunal set aside the ACCC’s determination, finding the ACCC’s valuation of the
pipeline, which affected the tariff that could be charged, had fundamental errors in principle.
APA Managing Director Jim McDonald said the decision underscored the need for a robust appeals process.
“It shows the need for a merits appeal process to apply across the access pricing of all infrastructure,” he said.
“The industry has appealed when we feel the Gas Access Code has been wrongly applied and on balance, the appeals have been overwhelmingly in favour of the industry.
“The Code requires the ACCC to balance the rights of consumers and pipeline investors.
“The regulator has broad discretion and errors have been made. This Tribunal decision has corrected another major error.”
The Productivity Commission has just completed an inquiry into the application of the Code which addressed this regulatory discretion and the difficulties it has caused the industry.
The Commission’s report has been delivered to the Minister and is expected to be
considered during the next sitting of Parliament.
“Today’s decision shows the industry was right to ask the Productivity Commission to
narrow the discretion of the regulator.”
Mr McDonald said he anticipated no change to APA’s tariffs on the Moomba to Sydney
pipeline, which supplies about two thirds of the gas for the Sydney market.
“We believe our tariffs are right where they should be and the Competition Tribunal today has supported the principles that underscore our tariffs in its judgement,’’ he said.