The gas supply chain can be thought of as comprising three distinct sectors. Upstream gas suppliers produce gas; gas is transported through transmission and distribution pipelines to downstream users; and large users and energy retailers organise contracts and on-sell gas to consumers.
The ERA’s role in the gas supply chain in Western Australia is to:
- Approve access arrangements for three full regulated pipelines in Western Australia: the Dampier to Bunbury Natural Gas Pipeline, Goldfields Gas Pipeline, and Mid-West and South-West Gas Distribution System. Access arrangements provide the prices and terms and conditions under which third party users can access the regulated pipelines to transport and receive gas.
- Administer light regulation to the Kalgoorlie to Kambalda Pipeline.
- Enforce and monitor compliance with the non-scheme gas pipeline information disclosure and arbitration framework in Western Australia.
- Administer the gas licensing regime. This role involves issuing licences to entities that generate, transmit, distribute or retail gas in Western Australia, monitoring and enforcing compliance with licence conditions, and approving customer protection measures.
- Oversee the Gas Retail Market Scheme to ensure the market is regulated and operated in a manner that is efficient, open, competitive, and fair to gas market participants and their customers.
The ERA does not have a role in setting retail electricity and gas prices. These are set by the State Government.