Gas - Distribution

With a consumption of about eleven per cent of the national total, Queensland has a small but developing gas market. Consumption is dominated by the industrial sector where usage has more than doubled over the past 10 years.

Queensland currently has two primary natural gas distribution companies:

• APT Allgas (previously Allgas Energy Ltd) (providing service to south Brisbane, the Gold Coast, Toowoomba, and Oakey) and
• Envestra (servicing north Brisbane, Gladstone, Ipswich and Rockhampton).

The Queensland Competition Authority regulates the gas distribution networks to ensure that owners provide access to infrastructure on fair and reasonable terms, avoiding unproductive duplication of such facilities while creating the potential to increase competition and improve economic outcomes.

The Authority's responsibilities in relation to the Gas industry are to:

• assess and approve third party access arrangements to gas distribution networks;
• regulate pricing for gas distribution services;
• report on ring-fencing compliance between distribution entities and contestable activities;
• monitor service quality standards; and
• assess competitive neutrality complaints.

Regulatory Framework

 The main sources of regulation, as relevant to the Authority’s role in the gas sector are:

• The National Third Party Access Code for Natural Gas Pipeline Systems;
• The Gas Pipelines Access (Queensland) Act 1998;
• The Gas Supply Act 2003 ;
• The Gas Industry Code;
• The Petroleum Act 1923; and
• The Gas Pipelines Access (Commonwealth) Act 1998.

The National Third Party Access Code establishes a national access regime for natural gas pipelines. Under the code:

• the Australian Competition and Consumer Commission (ACCC) has the regulatory responsibility for transmission pipelines (except WA); and
• State Regulators are responsible for distribution networks.

The Gas Pipelines Access (Queensland) Act establishes the Authority as the Queensland regulator for third party access to Queensland gas distribution networks.

Issues

The Authority's responsibilities encompass the following gas issues:

• The 2006 Access Review into Allgas Energy and Envestra's access arrangements;
• Monitoring Service Quality;
• Approving Reference Tariffs; and
• Monitoring Ring-Fencing compliance.