Mr Sims said the next major focus for the ACCC is reducing the impact of Australia’s pipeline monopoly.
“We want to regulate the pipeline monopoly,” Mr Sims told Fairfax Media. “We can’t break up it as the situation is what it is, but there are actions we can take.” The majority of Australia's gas pipelines are owned by three companies, APA Group, Jemena, and Australian Gas Networks. Mr Sims said the ACCC will first ensure pipeline owners cannot stop others from accessing gas pipelines. Secondly, in terms of pricing, Mr Sims said there will now be an arbitration system put in place where issues over access exist.
“This means when contracts expire companies can seek arbitration.” He said these actions will have a direct impact on gas prices and better results for gas users. “In two to three years pipeline prices will come down, and we’ll see lower flow-on prices in Victoria and NSW,” Mr Sims said.
This could have more to do with the sell off then the expected gas supply news. BUL's main play at the moment is the APA pipeline. If anything comes out of this ACCC 'focus' on gas pipelines practices then it may add uncertainty about building our new one.
BUL Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
