Some submissions on Gas Industry Co's November 2010 Retail Competition and Transmission Capacity: Statement of Proposal expressed a strong preference for a non-regulated approach to improving competition in the retail market supplied by Vector's North Pipeline.
On 14 April Gas Industry Co held a workshop to explore ways to improve competition without regulation.
Background material:
Draft Gas Governance (Constrained Transmission Pipeline) Rules
Agenda:
Agenda for 14 April Retail Competition Workshop
Workshop presentations:
Feedback following the Workshop:
On 15 September 2010 Gas Industry Co held a workshop with a small group of participants to consider design options for addressing the current competition issue.
The agenda and presentation from the workshop are available below
15 September Vector Capacity Workshop Agenda
Gas Industry Co Introductory Presentation
Creative Energy Presentation on Evaluation Objectives and Options
Gas Industry Co Presentation on Next Steps
Note on Capacity Meeting and additional Gas Industry Co Work
Gas Industry Co invited feedback on several questions regarding several points discussed at the workshop. The questions and a summary of the responses to those questions are available below:
Capacity questions for participants
Summary of participants responses to Gas Industry Co questions
Date Published: 12 November 2010
In the paper Retail Competition and Transmission Capacity: Statement of Proposal, Gas Industry Co proposes introducing the Gas Governance (Constrained Transmission Pipeline) Rules.
The Rules are Gas Industry Co's preferred option for ensuring there are no unintended effects on competition arising from a TSO's commercial arrangements for transporting gas on constrained transmission pipeline.
Following the April Retail Competition workshop, key members of the gas industry have put in place a package of measures to address the short-term issues large end users on the constrained North Pipeline are facing. The 'Bridge Commitments' comprise seven commitments. Notably each signatory supplier has agreed that, where it supplies an end user, and that end user tenders its gas supply, it will make pipeline capacity available to competing suppliers.
Gas Industry Co has assessed the Bridge Commitments and considers that they should:
· ensure existing large end users on the constrained North Pipeline have an effective choice of supplier in the short term;
· help to facilitate development of longer term access arrangements and investment; and
· materially change the market.
As a result of these conclusions, Gas Industry Co has determined that intervention by way of Rules is not justified at this time.
Gas Industry Co will continuously monitor the effectiveness of the Bridge Commitments and update industry if anything occurs that may change its assessment.
In the mean time Gas Industry Co will continue to work with the industry on the Gas Transmission Investment Programme. For more information on this work please refer to the 'Long-term' tab.
The Bridge Commitments can be found here: The Bridge Commitments
Gas Industry Co's detailed assessment of the Bridge Commitments in the context of our short-term capacity work can be found here:
Update on the Retail Competition and Transmission Capacity Workstream
Gas Industry Co's news release on this work can be found here: News release
Vector Limited recently sent a letter to Shippers updating them on progress made under the Bridge Commitments.
A copy of the letter can be found here: Vector letter to Shippers
Gas Industry Co's first progress report on the Bridge Commitments is available below