Another monopolist is putting an energy gun to the East Coast economy:
The AER is inviting feedback as part of a consultation phase ahead of a final decision expected in early December.
APA chief executive Adam Watson welcomed the draft decision, having previously warned that imposing full price regulation on the SWQP would push up energy bills for residential and commercial consumers, and exacerbate the risk of gas shortages in the southern states.
He said the company was now ready to move forward with the third stage of its east coast grid expansion project which would boost capacity on its SWQP and Moomba Wilton Pipeline.
The expansion of the pipeline is good news. It’s says that beneath the surface, some sanity is prevailing around the future of QLD gas flowing south.
However, why is it we have to pay these monopoly dues every time we want to fix a critical national interest energy problem?
APA would only expand the pipeline if it is free to gouge the tariffs.
The irony should not be lost on anybody. We have to pay one monopolist (the pipeliner) to prevent another monopolist (the gas cartel) from gouging us even harder.
The pipeline was originally price regulated using the cost plus model.
But, the QLD government spiked that when APA bought the pipe in 2012, over the objections of the Australian Energy Regulator which actually uses the pipe to move gas.
Australia’s federation structure baked in so much dysfunctional over-government that it has cost the nation dearly.
