Mr. Ripper questions the delay in the gas access regulator's decision on Dampier to Bunbury natural gas pipeline transmission tariffs and its potential economic impact. Mr. Barnett emphasizes the regulator's independence and minimizes the delay's impact.

AnsweredQoN 395Legislative Assembly
Asked
23 November 2000
Member
Portfolio
Energy

QuestionView source ↗

DAMPIER TO BUNBURY NATURAL GAS PIPELINE, TRANSMISSION TARIFFS
(1) When will the gas access regulator make a decision on the transmission tariffs to apply on the Dampier to Bunbury natural gas pipeline. (2) Is the minister concerned about the potential impact of this $500m decision on economic development in Perth and the south west, and on confidence in infrastructure investment in this State? (3) Why has the decision been delayed for so long? Mr BARNETT

AnswerView source ↗

(1)-(3) The gas access regulator is an independent person, so it is not up to me to dictate when he will make the decision. As the minister I am very keen that the decision be made as soon as possible. It had been anticipated that it would be made around October this year. That clearly has not happened. I expect he will come out with a draft decision, I hope before the end of the year. That draft will be released for discussion and a final decision made in the middle of next year. It is an important decision, but I remind members that when the Dampier to Bunbury natural gas pipeline was privatised, regulations were put in place that brought the tariff down from $1.20 to $1, setting a base of an effective 20 per cent reduction in tariffs. I do not think the delay will have a great impact on development. It is one pipeline, and the tariff applies to all pipeline users, but I hope that transmission prices will be as low as possible. The key to even lower prices is the development of higher gas volumes through the pipeline. The Government is keen to extend south west gas pipelines, and to get new power generation infrastructure in place. Like the member for Belmont, I would like to have the regulator make his decision. It is a complex decision and should be made properly, in full consultation with industry, which is what he is doing.
(2) Is the minister concerned about the potential impact of this $500m decision on economic development in Perth and the south west, and on confidence in infrastructure investment in this State? (3) Why has the decision been delayed for so long? Mr BARNETT replied: (1)-(3) The gas access regulator is an independent person, so it is not up to me to dictate when he will make the decision. As the minister I am very keen that the decision be made as soon as possible. It had been anticipated that it would be made around October this year. That clearly has not happened. I expect he will come out with a draft decision, I hope before the end of the year. That draft will be released for discussion and a final decision made in the middle of next year. It is an important decision, but I remind members that when the Dampier to Bunbury natural gas pipeline was privatised, regulations were put in place that brought the tariff down from $1.20 to $1, setting a base of an effective 20 per cent reduction in tariffs. I do not think the delay will have a great impact on development. It is one pipeline, and the tariff applies to all pipeline users, but I hope that transmission prices will be as low as possible. The key to even lower prices is the development of higher gas volumes through the pipeline. The Government is keen to extend south west gas pipelines, and to get new power generation infrastructure in place. Like the member for Belmont, I would like to have the regulator make his decision. It is a complex decision and should be made properly, in full consultation with industry, which is what he is doing.
(3) Why has the decision been delayed for so long? Mr BARNETT replied: (1)-(3) The gas access regulator is an independent person, so it is not up to me to dictate when he will make the decision. As the minister I am very keen that the decision be made as soon as possible. It had been anticipated that it would be made around October this year. That clearly has not happened. I expect he will come out with a draft decision, I hope before the end of the year. That draft will be released for discussion and a final decision made in the middle of next year. It is an important decision, but I remind members that when the Dampier to Bunbury natural gas pipeline was privatised, regulations were put in place that brought the tariff down from $1.20 to $1, setting a base of an effective 20 per cent reduction in tariffs. I do not think the delay will have a great impact on development. It is one pipeline, and the tariff applies to all pipeline users, but I hope that transmission prices will be as low as possible. The key to even lower prices is the development of higher gas volumes through the pipeline. The Government is keen to extend south west gas pipelines, and to get new power generation infrastructure in place. Like the member for Belmont, I would like to have the regulator make his decision. It is a complex decision and should be made properly, in full consultation with industry, which is what he is doing.
Mr BARNETT replied: (1)-(3) The gas access regulator is an independent person, so it is not up to me to dictate when he will make the decision. As the minister I am very keen that the decision be made as soon as possible. It had been anticipated that it would be made around October this year. That clearly has not happened. I expect he will come out with a draft decision, I hope before the end of the year. That draft will be released for discussion and a final decision made in the middle of next year. It is an important decision, but I remind members that when the Dampier to Bunbury natural gas pipeline was privatised, regulations were put in place that brought the tariff down from $1.20 to $1, setting a base of an effective 20 per cent reduction in tariffs. I do not think the delay will have a great impact on development. It is one pipeline, and the tariff applies to all pipeline users, but I hope that transmission prices will be as low as possible. The key to even lower prices is the development of higher gas volumes through the pipeline. The Government is keen to extend south west gas pipelines, and to get new power generation infrastructure in place. Like the member for Belmont, I would like to have the regulator make his decision. It is a complex decision and should be made properly, in full consultation with industry, which is what he is doing.
(1)-(3) The gas access regulator is an independent person, so it is not up to me to dictate when he will make the decision. As the minister I am very keen that the decision be made as soon as possible. It had been anticipated that it would be made around October this year. That clearly has not happened. I expect he will come out with a draft decision, I hope before the end of the year. That draft will be released for discussion and a final decision made in the middle of next year. It is an important decision, but I remind members that when the Dampier to Bunbury natural gas pipeline was privatised, regulations were put in place that brought the tariff down from $1.20 to $1, setting a base of an effective 20 per cent reduction in tariffs. I do not think the delay will have a great impact on development. It is one pipeline, and the tariff applies to all pipeline users, but I hope that transmission prices will be as low as possible. The key to even lower prices is the development of higher gas volumes through the pipeline. The Government is keen to extend south west gas pipelines, and to get new power generation infrastructure in place. Like the member for Belmont, I would like to have the regulator make his decision. It is a complex decision and should be made properly, in full consultation with industry, which is what he is doing.

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