Lyndon Rowe started off his presentation by clarifying the role of the Economic Regulation Authority (ERA) about which he said there are many misconceptions.

The ERA – the independent economic regulator in WA – is responsible for regulating monopoly infrastructure including gas pipelines, electricity transmission and distribution lines and rail services. As an independent statutory authority, it determines the terms and conditions under which third parties can access gas pipeline services.

Mr Rowe said that the ERA does not set retail or wholesale gas prices, but it does licence gas distribution and retail companies.

Mr Rowe also said that the regulatory body is responsible for pipeline access arrangements – such as is the case for two of WA’s major pipelines, the 1,489 km Dampier to Bunbury Natural Gas Pipeline and the 1,380 km Goldfields Gas Transmission – and gas distribution access arrangements.

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Mr Rowe then outlined the reasoning behind some of ERA’s recent decisions, discussing in depth the decisions about WA’s gas distribution networks, while reminding attendees that the ERA does not set retail pricing. He also added that there were aspects of the state regulatory model that could be improved.

The lunch was sponsored by Denso, Enerflex and Rosen.