Pricing and access under National Competition Policy: the case of the natural gas pipeline sector

Article

Lawrey, Roger. 1998. "Pricing and access under National Competition Policy: the case of the natural gas pipeline sector." The Australian Economic Review. 31 (2), pp. 91-106. https://doi.org/10.1111/1467-8462.00056
Article Title

Pricing and access under National Competition Policy: the case of the natural gas pipeline sector

ERA Journal ID18190
Article CategoryArticle
Authors
AuthorLawrey, Roger
Journal TitleThe Australian Economic Review
Journal Citation31 (2), pp. 91-106
Number of Pages16
Year1998
Place of PublicationOxford, UK
ISSN0004-9018
1467-8462
Digital Object Identifier (DOI)https://doi.org/10.1111/1467-8462.00056
Web Address (URL)http://onlinelibrary.wiley.com/doi/10.1111/1467-8462.00056/abstract
Abstract

This paper reviews the development of open access and deregulation of trunk pipeline natural gas transportation in Australia and the
United States. It investigates Australian policy developments in the setting of reference tariffs for firm service, but argues that the institutional arrangements for granting third party access, and the pricing of that access on a spot or interruptible basis, are at least as important as tariffs for firm service. The paper concludes that, in the absence of an established pipeline network, pipelines may have little incentive to price their excess capacity efficiently. In this
case, attempts to promote an efficient allocative outcome through privatisation and open access in Australia are unlikely to be as successful as they have been in North America.

Keywordspricing, access, essential facilities, gas pipelines, competition policy
ANZSRC Field of Research 2020380199. Applied economics not elsewhere classified
Byline AffiliationsUniversity of Brunei Darussalam, Brunei
Institution of OriginUniversity of Southern Queensland
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