Strategic Plan – the process started with a two-day forum of industry representatives in Melbourne, with polishing taking place at the April Board meeting. We are confident that it is a timely document that will serve us well. We intend to have the revised plan available in time for the 2009 APIA Convention in Cairns.

Budget – the Audit and Risk Committee reviewed the state of APIA’s finances and considered a range of scenarios, ultimately recommending that membership fees should rise, but by less than the full consumer price index. This recommendation was rigorously reviewed by the full Board and an increase of two per cent was approved. This decision was not taken lightly. It is a balance between ensuring we maximise the opportunity for everyone to attend APIA functions with having the ability to continue to provide the functions and services APIA so deftly carries out.

Pipelines Co-operative Research Council (CRC) – the most prodigious effort recently has been by the Research and Standards Committee (RSC). In particular, Leigh Fletcher and APIA Research Manager Ankie Larsson have compiled a comprehensive and detailed submission for a pipeline CRC to the Australian Government. To date, the submission has passed first base. The RSC does a very good job in ensuring that our industry is at the forefront of the safe operation and development of pipelines. A pipeline CRC would provide a further dimension, ensuring greater access to resources, enabling greater breadth and depth of research and the communication of knowledge.

Regulation – it never seems to leave us: changes to the gas law to accommodate the evolving Short Term Trading Market (STTM) and Gas Statement of Opportunities requirements (GSOO); the Weighted Average Cost of Capital (WACC), not to mention the greenhouse gas reporting requirements and the potential impacts of the Carbon Pollution Reduction Scheme (CPRS) and Renewable Energy Target (RET). The Secretariat and the Regulatory and Economic Policy Committee do a great job in keeping abreast of it all and representing our interests. Commonsense does seem to be prevailing with the way the STTM and GSOO are evolving but, as always, it will be the detail that must be carefully examined.

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Cheryl has previously and very eloquently commented on the current evolution of the CPRS and RET, so I will not expand on that. The AER’s draft WACC decision was very disappointing; however, in its final decision, the AER has at least provided a small upward adjustment. The decision applies to the electricity industry, but it would be foolhardy to believe that the regulator would not apply similar thinking to the gas industry.

While such limited returns are allowed, the regulator should not expect anything other than risk-averse activity. This is most unfortunate, given that Australia’s future economic prosperity will rely heavily on energy that is reliably delivered at a practical and cheap price. That will not come about through the heavy-handed control of regulated returns, but through the energy industry taking investment risks.

To conclude on a high note, have you responded to your invitation to the 2009 APIA Convention? Once again, the papers submitted were of very high quality and the committee had a tough job to choose the final nineteen. Of course, the papers are only part of the attraction. The exhibitors always do a great job in demonstrating the latest developments and products, the social events are innovative and fun, and most importantly we all get a chance to get together, to share experiences, ideas and the odd story or two! Get that form in now.