And the gas debacle deepens.
AER board member Lynne Gallagher said the regulator’s analysis suggested APA can exercise market power over the supply of services on the pipeline, but that the ruling also considered the power of major users and the potential for customers to substitute the services they receive on the line in the future.
“Concerns about investment uncertainty came through loud and clear during the consultation on our draft decision,” Gallagher said in a statement. “Very few stakeholders that participated in our consultation process, including users of the SWQP, were in favour of scheme regulation.”
Gallagher said that prices and returns for APA on the pipeline still “appear to be higher than the AER would expect in a workably competitive environment” and said it would like to see downward pressure on prices paid, particularly for smaller customers.
She said the AER would closely monitor how services are provided on the pipeline as part of its new powers on gas pipeline monitoring and reporting.
SWQP is the key pipeline for shipping gas south from the gas export cartel in the Bowen Basin.
APA is now free to gouge the desperation of southern states as it runs short of gas and the energy crisis explodes.
Why would the AER ask “stakeholders” what to do? Why wouldn’t it realise that prices are too high because (artificial) resource scarcity has set in?
Regulators should do their own calculations in the national interest.
The energy crisis is now in thermal runaway towards economic disaster.
We needed an emergency National Security Energy Summit to smash failed markets back into service of the public.
Odds: zero. There is no leader.
