The Australian Energy Regulator (AER) has published for consultation its draft decision on the Roma to Brisbane Pipeline (RBP) gas access arrangement for the five‑year period starting 1 July 2022 to 30 June 2027.
The RBP, owned and operated by APT Petroleum Pipelines Pty Limited (APTPPL), is a transmission pipeline transporting natural gas between the Wallumbilla gas supply hub (near Roma) and Brisbane, including regional centres in between.
As with other covered gas pipelines, we regulate APTPPL's reference tariffs for the RBP and, through this, the amount of revenue it can recover from users of the pipeline under an approved access arrangement.
The draft decision allows APTPPL to set gas network charges for the RBP which are expected to result in the recovery of $213.5 million (nominal) in revenue in the 2022–27 period from consumers. This is a $26 million (10.9 per cent) decrease in revenue compared to that proposed by the business primarily due to a lower approved forecast for operating expenditure by the AER.
We estimate that if this draft decision is implemented, estimated nominal retail gas bills would decrease by $4 (0.6 per cent) for residential consumers and $25 (0.6 per cent) for small business consumers by the end of the 2022–27 period.
The AER’s draft decision acknowledges the 8 November 2021 announcement by RBP large gas consumer, Incitec Pivot, to cease manufacturing at its Gibson Island Plant in December 2022. We expect the impacts of this closure will be considered by APTPPL in its revised RBP proposal and subsequently addressed by the AER in the final decision. Consequently, the estimated retail gas bill impacts set out in the draft decision are subject to change.
APTPPL now has the opportunity to consider the draft decision and submit a revised RBP proposal by 14 January 2022. The AER will make a final decision by 29 April 2022.
Invitation for submissions
We invite energy consumers and other interested parties to make submissions on our draft decision and the revised RBP proposal (once submitted) by 18 February 2022.
Submissions should be sent to: RBP2022@aer.gov.au
Alternatively, you may mail submissions to:
Mr Sebastian Roberts
Australian Energy Regulator
GPO Box 3131
Canberra ACT 2601
We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.
We request parties wishing to submit confidential information:
- clearly identify the information that is the subject of the confidentiality claim
- provide a non-confidential version of the submission in a form suitable for publication