VENCorp to oversee Qld gas deregulation -


Victorian gas market operator VENCorp has been appointed to oversee Queensland's gas retail market in the lead-up to full competition.
Deputy Premier Anna Bligh said the appointment completes another step towards the full deregulation of Queensland's gas market from July 1, 2007.
Under full competition, retailers would be obliged to publish gas prices to encourage transparency and competition in retail pricing.
Ms Bligh said VENCorp had a well-established track record - as shown by its operation of Victoria's gas market, the largest by volume in Australia.
"Choosing an experienced market operator like VENCorp means they are not only tried and tested in a large market, but they will bring knowledge that will smooth the transition to full retail contestability in Queensland," Ms Bligh said.
VENCorp (Victorian Energy Networks Corporation) was established in 1997 and plays a key role in Victoria's gas and electricity industries.
Queensland Energy Minister John Mickel said VENCorp's expertise in managing contestability would be critical to cost-effective implementation of full retail competition, for both industry and consumers.
He said the company offered the most suitable market rules, day-to-day operational arrangements and the lowest overall running costs.
"Lower operating costs and efficient market operation will benefit gas suppliers, distributors and customers," Mr Mickel said.
"VENCorp also has the ability to deliver market systems by the FRC implementation date, including the information technology systems necessary for customer transfer to occur once the market is open to full competition.
"The selection of VENCorp means Queensland will also be well positioned for the future introduction of a national gas market operator being considered by state and territory ministers."
Mr Mickel also announced the Energy Competition Committee (ECC) would investigate duplicating the Brisbane section of the Brisbane-Roma pipeline.
"Duplicating the Brisbane or metro section of the pipeline will increase its capacity between Ellengrove and Gibson Island, opening up access for industrial customers in the TradeCoast area and improving access on the Allgas and Envestra consumer networks," he said.
Natural gas is delivered to Brisbane from the high-pressure Roma-to-Brisbane gas pipeline.
This pipeline feeds both the Allgas Energy and Envestra distribution networks in south-east Queensland.
"Increasing the capacity of the metro section of the Roma-Brisbane pipeline has the potential to grow the gas market, stimulate competition, encourage investment in commercial and industrial developments and support the development of the state's gas resources," Mr Mickel said.