We have commenced a form of regulation review for the South West Queensland Pipeline (SWQP). The SWQP is a non-scheme pipeline, which is subject to light regulation, and is owned and operated by APA Group.
This review will consider whether to make a scheme pipeline determination which would change the level of regulation applying to the SWQP. If we decide to make such a determination, the SWQP will become a scheme pipeline, subject to full price regulation. If we decide not to make the determination, the SWQP will remain a non-scheme pipeline.
The review of the SWQP is the first of a series of self-initiated form of regulation reviews the AER is planning to undertake over the several years. The SWQP was chosen as the first pipeline for a review due to its importance to the east coast gas system in transporting gas between northern and southern states.
The AER has not yet formed any views on whether the form of regulation of the SWQP should change. We will shortly commence consultation for the review with the release of a Discussion Paper outlining the key issues for the review and seeking stakeholder views.
Background
The AER gained the responsibility for determining the form of regulation of pipelines in March 2023, when reforms to the gas pipeline regulatory regime commenced. Since this time the AER has been considering whether to conduct a review of any pipelines. We did so because the changes to the gas pipeline regulatory regime (including the AER’s ability to conduct form of regulation reviews) were intended to address the risk of under-regulation of gas pipelines in Australia, and to ensure that the level of regulation applying to gas pipelines is appropriate and that the long-term interests of consumers are promoted.
The AER will conduct a program of form of regulation reviews over several years. We have not yet formed views about whether the regulation of any pipelines should change, but considered that there is a need to look into the form of regulation of pipelines more closely.