The ACCC Chairman Rod Sims signalled out the pipeline sector for particular need for regulation and reform.
“While the pipeline sector is responding to a changing market dynamics and offering new services, pricing based on significant pipeline market power is prevalent. The regime regulating gas pipelines is not fit for purpose and pipeline pricing is largely unconstrained by either the threat of regulation or effective competition,” said Mr Sims.
“Pipeline pricing exacerbates the effect of supply tightness on wholesale gas prices. There are currently very few constraints on monopoly pricing by pipeline operators.”