Regulating gas pipelines under uncertainty - Information paper

Sector: 
Category: 
Special report
Release date: 
15 November 2021

Overview

In light of the ongoing energy transition and the decarbonisation objectives committed by Australian governments, the AER has prepared an information paper on the issues relating to the regulation of gas pipelines.

This information paper Regulating gas pipelines under uncertainty aims to assist stakeholders in understanding how the current energy transition affects regulated gas networks and its implications for the economic regulation of gas pipelines and networks and in turn, for consumers. We outline a range of possible options to manage the pricing risk and stranded asset risk arising from a potential material decline in gas demand in the long-term.

The information provided and the issues raised in this paper should facilitate informed engagement between gas consumers, regulated businesses, governments and the AER. In particular, we see the information paper as being a crucial input into the upcoming Victorian gas transmission and distribution access arrangement reviews. We invite stakeholders to participate in upcoming gas access arrangement reviews and the engagement processes leading up to those reviews, and provide feedback on how we can best respond to the changes in the energy sector in a way that is consistent with the National Gas Objective.