110Requirements for making, or not making, a greenfields price protection determination

110 Requirements for making, or not making, a greenfields price protection determination

110 Requirements for making, or not making, a greenfields price protection determination

(1) The AER must not make a greenfields price protection determination unless—

(a) the pipeline the subject of the determination is also the subject of a greenfields incentive determination; and

(b) the AER is satisfied—

(i) that—

(A) the pipeline has been developed following a competitive process; and

(B) the prices and non-price terms and conditions for pipeline services that will be made available to prospective users during the operative period for the greenfields price protection determination have been set as a result of that process; or

(ii) that—

(A) one or more form of regulation factors effectively constrained the exercise of market power by the service provider when the prices and non-price terms and conditions for pipeline services that will be made available to prospective users during the operative period for the greenfields price protection determination were determined; and

(B) the making of the determination will, or is likely to, contribute to the achievement of the national gas objective.

(2) For the purposes of subsection (1)(b)(i)(A), a pipeline is taken to have been developed following a competitive process if the AER is reasonably satisfied from the information provided to it by the applicant for the greenfields price protection determination that there was competition (whether formal or informal) to develop the pipeline between 2 or more prospective service providers that—

(a) were not related bodies corporate of each other; and

(b) did not include a related body corporate of the applicant

Example

Competition between prospective service providers could involve the service providers competing on the basis of—

(a) different pipeline routes; or

(b) an expansion of an existing pipeline and the development of a new pipeline.

(3) A greenfields price protection determination or a decision not to make a greenfields price protection determination must—