February 25, 2019 Read More →

Northern Gas Pipeline’s exemption from National Gas Rules in question

Energy Magazine:

The Australian Energy Market Commission has made a draft determination not to make a rule to remove an exemption in the National Gas Rules that applies to the Northern Gas Pipeline.

The pipeline is exempt from the framework for arbitration and information disclosure due to a derogation in the National Gas Rules.

Environmental Justice Australia and the Institute for Energy Economics and Financial Analysis sought to revoke the derogation so the Northern Gas Pipeline would need to comply with the requirements for providing information, as well as the dispute resolution procedures, set out in Part 23 of the National Gas Rules.

The AEMC’s draft determination finds the existing regulatory regime for the pipeline – which was put in place by the Northern Territory Government as part of a binding contract – is effective. Also, adding new regulatory requirements for the pipeline would be costly and potentially confusing for both Jemena and users.

In not making a draft rule, the AEMC notes the unique circumstances at the time the derogation was made, in particular, that Part 23 of the National Gas Rules was not yet in place. To provide protections for pipeline users, the Northern Territory Government included a range of conditions in the binding contract. In particular, Jemena must offer any potential pipeline users services at a set price.

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