APIA would support a campaign against over-regulation and the Australian Competition and Consumer Commission’s (ACCC) role, she said. The move follows a decision by the Australian Competition Tribunal to value the Moomba-to-Sydney pipeline at more than its owners and the ACCC have done. After earlier rejecting the valuation methods proposed by pipeline-owner Australian Pipeline Trust and the ACCC, the tribunal used its own model to value the asset at A$834.66 million. The new regulatory value, which affects the tariff that can be charged to transport gas, is 53% higher than the initial capital base of the A$545 million the ACCC estimated, and also substantially higher than the A$740 million valuation arrived at by APT. Ms Cartwright said the decision demonstrated a poor understanding of infrastructure valuation and investment. “The pipeline industry has connected the eastern states, creating a working gas market, and the industry should be rewarded, not penalized, for this investment,” she said.
