Fast track for radical gas, electricity changes | Business | The Australian

INDUSTRY will have only six weeks to comment on radical changes to legislation covering gas and electricity that are expected to come into effect from January 1.
Australia's energy ministers meeting in Darwin yesterday agreed that legislation for a new National Gas Law and amendments to the existing National Electricity Law would be introduced into the South Australian Parliament in late October or November.

Other states will pass mirror legislation once it has become law in South Australia.

The legislation will affect industries with assets of more than $100 billion.

Key components of the legislation will be the transfer of retail and distribution regulation (other than retail pricing) from the states to the recently established Australian Energy Regulator, and arrangements for the certification of energy access regimes on a nationally consistent basis.

Last night Cheryl Cartwright, chief executive of the Australian Pipeline Industry Association, warned the energy ministers they risked future investment in long-distance gas pipelines by reducing the time for full consultation on the legislation.

"Legislation to establish a new energy market regime is complex, but it is also critical to energy industries," she said.

"It therefore needs to be well considered and appropriate for the gas transmission industry."

The Ministerial Council meeting in Darwin also agreed to an extensive period of public consultation on rules for retail competition.

Retail price control will be retained by the states unless they choose to transfer their powers to the AER and the Australian Energy Market Commission.

Queensland and Western Australia have said they will introduce full retail competition from July next year, but neither state is happy to user the models that currently apply to NSW or Victoria.

Both these states ran into difficulties with electricity retailers when they refused to allow the full costs of creating new billing systems to be passed on to consumers.

The Darwin meeting did not produce the expected fireworks when new NSW Energy Minister Joe Tripodi, attending for the first time, declined to respond to allegations from federal Resources Minister Ian Macfarlane that NSW was holding back on energy reform because it was revisiting the prospect of privatising its electricity system.

In line with the commitment of the Council of Australian Governments earlier this year, rules framing retail competition are required to be harmonised between the states to avoid duplication.

The meeting also reviewed COAG's commitment to a progressive rollout of electricity smart meters in a program that looks to costs and benefits.

The ministers agreed the rollout would take into account different market circumstances in each state and territory