The Australian Energy Regulator (AER) wishes to advise interested parties that the release date for its draft decision on proposed revisions to the Roma to Brisbane Pipeline (RBP) gas transmission access arrangement has been revised to June 2017. As a consequence, release of our final decision has also been revised, to November 2017.
The RBP, operated by APA Group, supplies natural gas to Brisbane industrial and retail consumers. It also supplies gas to electricity generators, supports gas market trading at the Wallumbilla hub west of Brisbane and contributes to gas export via Gladstone LNG facilities.
Australian gas markets are undergoing an unprecedented period of change. This is occurring in the context of increasing reliance on gas for electricity generation as some coal generators close. These market dynamics emphasise the importance of comprehensive consultation and careful assessment of issues arising from APA Group's proposed access arrangement revisions. We have extended our assessment period to ensure these matters are appropriately addressed.
An interval of delay will arise between the access arrangement revision commencement date of 1 July 2017, and the date on which revisions to the access arrangement will actually commence. Under r. 92(3)(a) of the National Gas Rules, the current reference tariffs will remain in force during the interval of delay. Under r. 92(3)(b) of the National Gas Rules, we propose to reconcile RBP reference tariff revenues to account for the interval of delay. This is consistent with both our past practice and, we consider, good regulatory practice.