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APGA: Gas market inquiries must present new solutions

The Australian Pipelines and Gas Association has used a Queensland event to implore gas market inquiries to avoid covering old ground.

Speaking at the Queensland Power and Gas Forum 2015, Australian Pipelines and Gas Association (APGA) National Policy Manager Steve Davies said the inquiries, being spearheaded by the Australian Energy Markets Commission (AEMC) and the Australian Competition and Consumer Commission (ACCC), must present new solutions in their recommendations.

He also acknowledged that gas market reform tends to move slowly, but that this wasn’t a major problem.

“The market is working, and everyone who needs gas today is getting it,” said Mr Davies.

“The problem is that reform keeps revisiting the same issues. In the case of capacity trading, the Council of Australian Governments Energy Council conducted a three-year process to determine the way forward.

“The outcomes of that process haven’t even been implemented yet and we have both the AEMC and the ACCC reviewing capacity trading again.”

Mr Davies also told the Forum it was likely that the problem of access to secondary capacity was not as severe as reported.

“Given that some market participants are able to put flexible arrangements in place, it is likely the extent of the issue is being overstated.

“Both reviews have a lot of work to do and revisiting issues that are being dealt with is not the best use of this opportunity.”

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