The decision formally recognises competition between CMS Gas Transmission's Parmelia pipeline, which runs from Dongarra to Pinjarra and Epic Energy's Dampier to Bunbury natural gas pipeline (DBNG).
"The cost of regulation is a reasonable portion of our expenses and that cost will no longer need to be passed on to users," said CMS general manager, Mr David King.
Mr King added customers would now have access to a more competitive supply of natural gas from the three producing gasfields in the Perth Basin and any new discoveries in the area.
In recent months the Perth Basin has been the scene of a number of discoveries at North Beharra, Hovea and Cliff Head. Proposed drilling at Woodada field could add significantly to reserves in the region.
