Competitive tender processes carried out in accordance with the Code allow for the tender to set the tariff, and other key aspects of third party access, for a new pipeline which is to be covered under the Code. This is a two stage process. First, a party seeking a pipeline to be constructed is required to lodge a Tender Approval Request, which sets out the terms and conditions of the proposed tender, with the regulator. After this is approved, the applicant runs the tender. A Final Approval Request may then be lodged with the regulator seeking approval of the outcome of the tender. If approval is granted the proposed pipeline becomes a covered pipeline under the Code and the successful tenderer, now the service provider, is required to submit a proposed access arrangement. This access arrangement must retain the specified outcomes, such as reference tariffs, from the tender for the duration of the initial access arrangement period.
For the Central Ranges competitive tender process IPART, the NSW regulator, carried out the parallel processes relating to the distribution aspects of the proposed project.