Review Report
The Minister for Energy has tabled in Parliament a report following a review of the operation and effectiveness of the Energy Co-ordination (Gas Tariffs) Regulations 2000. The findings of the Review, as detailed in the Review Report, are that there is insufficient competition in the “small use” gas market in Western Australia to warrant the removal of the Tariff Regulations.
The Tariff Regulations Review Report also concludes that given the limited potential for
competition in the short-term, a more detailed study of the level and
structure of gas tariffs should be undertaken by an expert consultant
engaged by the Office of Energy.
Background
The Tariff Regulations cap the retail price of gas to small use customers (households and small business customers using less than 1 terajoule of gas per year) in the areas to which the Tariff Regulations apply. This includes the Mid-West/South West (including the Perth metropolitan area), Albany, and Kalgoorlie-Boulder areas.
Clause 8 of the Tariff Regulations requires that the Minister conduct a review of the operation and effectiveness of the Tariff Regulations by 18October 2007; and that, in the course of the review, the Minister must give consideration to the need for continuation of the Tariff Regulations, having regard to:
the interests of gas customers generally or of a class of gas customers;
the legitimate business interests of the holders of trading licences;
the effectiveness of the Tariff Regulations in achieving appropriate consumer protection outcomes; and
any other matter that the Minister considers relevant.
The Minister requested that the Office of Energy conduct the Tariff Regulations Review, having regard to the above matters.The Tariff Regulations also require that the Review Report be laid before each House of Parliament as soon as practicable after it is prepared.
Public Consultation
The Office of Energy released a Gas Tariff Regulations Review Issues Paper for a four week consultation period and sought submissions from all interested parties.Download the Issues Paper.PDF
Four submissions were received in response to the Issues Paper, which can be downloaded from the following links:
Further Information
For further details on the Tariff Regulations Review contact Mr Matthew Martin, A/Senior Manager, Markets, Office of Energy, (08) 9420 5683 or email: matthew.martin@energy.wa.gov.au
