Notice of Inquiry into the Australian gas market

Overview

The Australian government has enacted the Competition and Consumer Act 2010 to address issues of transparency and market monitoring within the gas industry. On 19 April 2017, the Treasurer, the Hon Scott Morrison MP, mandated the Australian Competition and Consumer Commission (ACCC) to conduct an Inquiry into the Australian gas market. This Inquiry aims to improve the transparency of gas supply arrangements and monitor the supply and demand of natural gas within the country. The ACCC is required to submit interim reports at least every six months and a final report by 30 April 2020, focusing on various aspects such as pricing, availability, and the supply of natural gas for both domestic and export markets. The policy objective of this Inquiry is to ensure a balanced and transparent gas market in Australia.

Scope and Application

The Notice of Inquiry into the Australian gas market issued on 19 April 2017 by the Treasurer, the Hon Scott Morrison MP, mandates the Australian Competition and Consumer Commission (ACCC) to conduct an investigation aimed at enhancing transparency and monitoring the supply of gas in Australia. This inquiry applies to the gas industry in its entirety, encompassing all gas producers, retailers, pipeline operators, and other entities involved in the supply or transportation of natural gas within Australia. The geographic reach of this Act extends across the entire nation, including the supply and demand dynamics of both domestically extracted or produced gas and that which is imported into Australia. The inquiry is not limited to specific persons or entities but rather casts a wide net over the entire industry to ensure a comprehensive review of market conditions and practices. The ACCC is obligated to submit interim reports every six months and a final report by 30 April 2020, providing ongoing updates and insights into the state of the gas market.

Key Provisions

The Notice of Inquiry into the Australian gas market, issued on 19 April 2017 by the Treasurer, the Hon Scott Morrison MP, mandates the Australian Competition and Consumer Commission (ACCC) to hold an Inquiry into gas supply in Australia (subsection 95H(1) of the Competition and Consumer Act 2010). This Inquiry is intended to enhance transparency and monitor gas supply arrangements, focusing on the supply and demand of natural gas extracted, produced, or imported into Australia, as well as the supply of natural gas transportation services within the country. The ACCC is required to conduct this Inquiry by examining various factors, including pricing and availability of gas supply offers, the volumes of gas supplied or available for supply, and the pricing, volume, and availability of gas for domestic supply compared to that for export. Additionally, the Inquiry will consider the pricing, volume, and availability of other goods or services related to gas supply and transportation, such as drilling, storing, or processing services. Under this legislation, the ACCC has specific obligations. Firstly, the Inquiry must be conducted in a manner that does not target any particular person or entity, nor any State or Territory authority. The ACCC must submit interim reports every six months, providing updates and insights into the market as appropriate. The Inquiry must be concluded by 30 April 2020, at which point the ACCC is required to submit a final report to the Treasurer. This ensures that the findings and recommendations are available for consideration and action by the relevant authorities within the specified timeframe. The legislation also outlines consequences for breaches of the obligations set forth. While the specific offences, penalties, or consequences for non-compliance are not detailed within the text provided, it is reasonable to infer that any failure to comply with the mandated reporting and Inquiry requirements could potentially result in legal repercussions. In Australian legal practice, non-compliance with legislative mandates can lead to civil or criminal penalties, depending on the severity of the breach and the specific provisions of the Act. However, the exact nature of these penalties is not specified in the notice, and would likely be detailed in other sections of the Competition and Consumer Act 2010 or related legislation. Nonetheless, the requirement to submit interim and final reports suggests a formal and structured approach to ensuring adherence to the Inquiry’s obligations.