Last August, in a minor victory for Epic, the Supreme Court ruled that the Office of Gas Access Regulation must take into account the $2.5 billion Epic paid the state government for the pipeline when tariff charges where determined.

However, in a bizarre twist to the plot, the gas access regulator has billed Epic the $700,000 cost of fighting the case. In response, Epic has now launched a second Supreme Court action to have the government pick up the tab, or have other industry players share the cost.

Mr Ripper said the taxpayers should not have to bear the cost of legal disputes over pipeline tariffs. "The system of regulating access to gas pipeline is designed to be funded by industry participants and I would regard fighting legal actions as part of the cost of operating the system," he said.

Epic spokesman David Williams said the company believed it was unfair that it should be forced to pay the government's legal expenses. "We are simply looking for an outcome that we are not liable for these costs, because we do not believe we are liable," Mr Williams said.

Fellow gas distributor CMS Energy has also taken action, or at least supported Epic's action against the regulator.