Figure 1.3: Spectrum of access regimes applying to pipelines Notes: * Subject to exemptions. Forward process The GMRG has commenced work on the development of a draft set of initial Rules. Following review and agreement by officials to release the draft Rules, stakeholders will have three weeks to provide their feedback. The stakeholder consultation period is expected to commence in late June. Following the incorporation of stakeholder feedback, the final set of initial Rules will then be provided to Council for its consideration and approval. The significant divergence of stakeholder views on key elements of the new framework and the late provision of an alternative proposal by APA Group (APA) has required the GMRG to devote additional time to consultation and consideration. As a consequence, Council consideration is now expected to take place out-of-session in early August, rather than at the mid-July meeting as previously advised. Further information on timeframes is provided in Table 1.4. Table 1.4: Timeframes Date Process 21 March 2017 Release of Options Paper 3-5 April 2017 Roundtable discussions by industry sector 13 April 2017 Stakeholder submissions on the Options Paper due Early June 2017 SCO review and approval of framework design Mid-June 2017 Officials review and approval of draft Rules to reflect the agreed design Late June 2017 Draft Rules released for public consultation (open for three weeks) Late July SCO consideration of the final Rules Early August 2017 Rules presented to Energy Council Ministers Implementation and transitional arrangements If Council approve the final set of initial Rules, the Rules will be made by the South Australian Minister for Mineral Resources and Energy. Table 1.5 provides an indication of the proposed timelines for the implementation of the new framework, which includes the time it is expected to take: non-scheme pipeline operators to publish the base level information on their websites and to start publishing independently verified financial reports and weighted average prices; and a number of guidelines and guides to be prepared, including: a binding guideline on the preparation of financial reports; and non-binding guides for the arbitrator and disputing parties on the arbitration process.
Stage 1: Shipper considers whether to seek access and assesses the reasonableness of the standing offer This stage is intended to provide a shipper that is considering whether to access a pipeline with adequate information to consider whether it should seek access to services on a non-scheme pipeline and assess the reasonableness of the pipeline operator’s standing offer, as well as terms and conditions associated with the services available. As articulated in the Examination, the information asymmetries faced by shippers can be reduced by increasing the level of disclosure and transparency of the information shippers require when: considering whether to seek access to a pipeline; and assessing the reasonableness of a pipeline operator’s offer. As evidenced by stakeholder submissions, shippers and pipeline operators alike support disclosure of information to assist shippers when considering whether to seek access to a pipeline. There is broad consensus that this information should be publicly available and readily accessible by shippers at all times, rather than being provided only in response to a specific access request. Greater transparency in this area will enable shippers to make more informed decisions about whether to seek access to a particular pipeline and facilitate more timely and effective negotiations. The information that the GMRG recommends be disclosed by non-scheme pipeline operators in this stage, include: the base level of information that shippers require when considering whether to seek access to a pipeline, which amongst other things includes: information on the services offered by the pipeline and the availability of those services; the standing offers for these services, which will include information on the price and non-price terms and conditions for the services offered by the pipeline, the methodology and inputs used to calculate the prices and any other policies the pipeline operator employs that may affect a shipper’s access or use; the pipeline operator’s access policy; demand information; and information on the technical characteristics of the pipeline that may affect a shipper’s access or use of the pipeline. the pipeline’s independently verified financial reports, demand information and the weighted average price per service offered, which shippers can use to assess the reasonableness of the pipeline operator’s standing offers. This information would be published on each non-scheme pipeline operator’s website. Non-scheme pipeline operators would be required to publish independently verified financial information for each pipeline in accordance with relevant Australian Accounting Standards and a guideline prepared under the NGR. Under the guideline for the financial reports, pipeline operators would be required to provide the information needed for parties