In keeping with the commitments made in 1994 by the Council of Australian Governments, the NSW Government is introducing competition in the supply of natural gas. This involves a series of stages including:
• development of third party access regimes for transport systems, setting out terms and conditions for the use of distribution pipes
• the progressive introduction of contestability to customer groups
• regulation and monitoring of prices by the Tribunal until effective competition is established
This report primarily addresses the Tribunal’s approach to the last of these three stages. However, as the establishment of effective competition requires implementation of the first two stages, it is useful to first outline the current state of play with respect to these reforms.
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