Western Australian Current Regulations

NATIONAL THIRD PARTY ACCESS CODE FOR NATURAL GAS PIPELINE SYSTEMS - REG 3.28

3.28

                The Relevant Regulator must decide to approve a Tender Approval Request if satisfied of all of the following and must decide not to approve a Tender Approval Request if not satisfied of all of the following:

            (a)         ( new pipeline ): that the proposed Pipeline will be a new Pipeline;

            (b)         ( public interest and Reference Tariff objectives ) : that using the tender process as outlined in the Tender Approval Request to determine Reference Tariffs is in the public interest and is an appropriate mechanism in the circumstances for ensuring that Reference Tariffs achieve the objectives in section 8.1;

            (c)         ( tender process will be competitive ): that the number and character of tenders likely to be received would be such as to ensure a competitive outcome; and

            (d)         ( exclusion of certain tenders ): that the proposed procedures and rules to be followed in conducting the proposed tender will result in a tender being excluded from consideration if it:

                  (i)         does not include a statement of the Reference Tariffs the tenderer proposes and the Reference Services to which those Reference Tariffs would apply;

                  (ii)         does not include a policy on whether the additional revenue which would result if the volume of gas actually transported by the proposed Pipeline exceeds a certain volume will either be retained by the Service Provider or returned in whole or in part to Users in the form of lower charges or some other form (an Additional Revenue Policy);

                  (iii)         does not provide that the residual value of the proposed Pipeline after the expiration of the initial Reference Tariff will be based on depreciation over the Pipeline’s economic life;

                  (iv)         limits or purports to limit the Services to which access might be sought under this Code; or

                  (v)         otherwise includes elements inconsistent with this Code except as contemplated by section 3.34;

            (e)         ( consideration of all conforming tenders ): that the proposed procedures and rules to be followed in conducting the proposed tender will result in no tender being excluded from consideration except in the circumstances outlined in paragraph (d) or if the tender does not conform to other reasonable requirements in the request for tenders or does not meet reasonable prudential and technical requirements;

            (f)         ( selection criteria ): that the selection criteria to be applied in conducting the proposed tender:

                  (i)         will result in the successful tender being selected principally on the basis that the tender will deliver the lowest sustainable tariffs (including but not limited to Reference Tariffs) to Users generally over the economic life of the proposed Pipeline; and

                  (ii)         are likely to result in Reference Tariffs that meet the criteria specified in section 3.33(c);

            (g)         ( determination of items with the Reference Tariffs ): that the tender documents specify which items required to be included in an Access Arrangement other than Reference Tariffs will be determined by the tender and that those items are directly relevant to the determination of Reference Tariffs;

            (h)         ( configuration of Pipeline not limited ): that the tender documents published by the person conducting the tender will not specify the configuration of the proposed Pipeline, including the areas the proposed Pipeline will service, pipeline dimensions, level of compression or other technical specifications, unless the Relevant Regulator is satisfied it would be appropriate to do so;

                  (i)         ( other documents ): that any document supporting or relating to the tender process is consistent with this Code and does not purport to limit:

                  (i)         the Services which the Service Provider may provide or to which access may be sought under this Code;

                  (ii)         the configuration of the proposed Pipeline including the areas the Proposed Pipeline will service, pipeline dimensions, level of compression and other technical specifications unless the Relevant Regulator is satisfied it would be appropriate to do so; or

                  (iii)         the construction or operation of other Pipelines which could deliver gas to the same gas market as the proposed Pipeline.