The AER has today published the first Gas pipeline monitoring and transparency report that provides insights into the behaviour and compliance of pipeline service providers.
We are firmly committed to enhancing the availability of information on key gas pipelines to ensure greater transparency and monitoring of market behaviour.
Why this report is important to us
Stemming from the gas pipeline regulations that commenced operation in March 2023, the AER obtained new monitoring and reporting powers aimed to address concerns of under-regulation and the potential market power of gas pipeline service providers.
We use these powers to monitor the behaviour of service providers and are a critical tool to inform our power to initiate form of regulation reviews. These reviews ensure the appropriate level of regulation is applied to pipelines to promote access.
Key findings
Transparency
There is limited transparency in the prices and non-price terms and conditions set by service providers due to the complexities and inconsistencies of published information. This limits the assistance the information provides to pipeline users when negotiating with service providers for pipeline access. As a result, we are considering implementing a standard template which service providers must use.
Bargaining power
Pipeline users reported different experiences and bargaining power to negotiate terms and conditions for pipeline services. This was supported by our own analysis that also indicated some users may have limited ability to negotiate across pipelines.
Additional information
The 2023 regulations have not yet been fully implemented as additional information is due to be published from December 2025. This information is expected to deliver improved transparency by providing pipeline users with cost-based pricing benchmarks.
Compliance
While compliance with the publishing of the actual prices payable information requires improvement, there were only a few instances of non-compliance among service providers relating to other obligations. These instances were self-reported and primarily due to a lack of understanding of new obligations under the regulations. We anticipate any confusion will be rectified following the release of the AER Compliance procedures and guidelines and the Gas ring-fencing decision guide.
Go to the Gas pipeline monitoring and transparency report
Our next report will be released in May 2026 and will align with the release of our inaugural Wholesale gas market performance report. Our second report will provide a more complete assessment of the extent to which the new gas pipeline reforms are delivering against their intended aims.