GAS

Govt gives AlintaGas five year competition-free window

Perth-based AlintaGas has effectively been given a five year competition-free window in the West Australian residential gas market after reaching an agreement with the WA Government that will see Western Power's entry into the market delayed by up to five years.

The gas distributor and retailer said the decision made by Cabinet to enter into the agreement guarantees a fair and open market for other competitors interested in entering the retail gas market. "Prior to 1 July 2007, the Government plans to ensure a review of the appropriateness of extending the moratorium beyond that date through the proposed Economic Regulation Authority."

AlintaGas said it has been encouraging the Government for some time to ensure that the government-owned electricity utility Western Power cannot enter the retail gas market until there is open competition in electricity at the household level.

"Our research indicated that in order to have genuine energy competition for WA householders, the opening up of gas and electricity markets should occur in a manner which is fair to all participants," said AlintaGas chief executive officer, Robert Browning.

By the third quarter next year Western Power will be able to supply gas to customers who consume more than one terajoule (TJ) per annum.

AlintaGas's agreement with the WA Government also addressed funding arrangements for the introduction of practical full retail contestability in the WA gas market as well as changes to the tariff cap regulations for AlintaGas's gas tariff customers.

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