Western Australian Current Regulations

NATIONAL THIRD PARTY ACCESS CODE FOR NATURAL GAS PIPELINE SYSTEMS - REG 8.1

8.1         General Principles

                A Reference Tariff and Reference Tariff Policy should be designed with a view to achieving the following objectives:

            (a)         providing the Service Provider with the opportunity to earn a stream of revenue that recovers the efficient costs of delivering the Reference Service over the expected life of the assets used in delivering that Service;

            (b)         replicating the outcome of a competitive market;

            (c)         ensuring the safe and reliable operation of the Pipeline;

            (d)         not distorting investment decisions in Pipeline transportation systems or in upstream and downstream industries;

            (e)         efficiency in the level and structure of the Reference Tariff; and

            (f)         providing an incentive to the Service Provider to reduce costs and to develop the market for Reference and other Services.

                To the extent that any of these objectives conflict in their application to a particular Reference Tariff determination, the Relevant Regulator may determine the manner in which they can best be reconciled or which of them should prevail.