Gas market principles submission

Client: Australian Pipeline Industry Association (APIA)
Sector: Energy

Synergies prepared a submission on behalf of APIA in response to the Gas Market Principles Consultation Paper, released by the MCE, which posited a number of high level principles to underpin the development of the Australian gas market. Read more...

The submission developed by Synergies and the Australian Pipeline Industry Association (APIA) considers current gas market conditions in Australia, the optimum market model that may be introduced, and makes more specific comments about issues raised in the MCE’s consultation paper.

The submission reviews the relative merits of both the market carriage and the contract carriage systems for operating the wholesale gas market. It argues that the contract carriage model would be the most desirable market structure for the Australian gas market at this stage of market development. It also argues that gas market development initiatives should focus on mitigating upstream market power. It concludes that the regulation of the gas market in Australia should be conducive to investment and that regulatory certainty is a critical condition for such investment.

Click here to read the entire submission