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Revised timetable for competitive gas market
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Victoria's 1.4 million households and small business will be able to choose their gas supplier in a fully competitive market from September 2001.
Releasing a revised timetable for introduction of consumer choice (contestability), the Treasurer, Mr Stockdale, said the Government had ensured the introduction of competition for smaller users was unaffected by delays earlier this year in the gas industry privatisation process.
He said the four-stage timetable provided for the staggered introduction of competition in a process similar to Victoria's electricity industry, allowing the gas industry to confidently move to a competitive market.
"Introduction of contestability will commence in October 1999 to ensure that security of supply is given top priority in the preceding winter months," Mr Stockdale said.
The schedule allows Victoria's largest customers using more than 500,000 gigajoules, representing 35 firms and accounting for 23.6 per cent of State load, to choose their supplier from October 1, 1999.
The schedule is as follows -
Date |
Customer load |
Number of |
Cumulative |
Example of customer |
(gigajoules) |
customers |
market share (%) |
||
| Oct 1, 1999 | more than 500,000 |
35 |
24.0 |
Paper mill, brickmaker, |
food processor and |
||||
chemical producer |
||||
| Mar 1, 2000 | 100,000 to 499,999 |
110 |
36.6 |
Hospital, hotel, |
| Sept 1, 2000 | 5000 to 99,999 |
1200 |
48.2 |
Large restaurant, |
small manufacturer, |
||||
commercial building |
||||
| Sept 1, 2001 | All remaining |
1,400,000 |
100.0 |
Households and |
small business |
Users will remain with their existing supplier - Kinetik, Ikon or Energy 21 - until contestability.
Mr Stockdale said the State Government had been pleased with Vencorp's progress implementing the gas spot market despite delays caused by the recent gas emergency.
"Vencorp is working to a date of March 1, 1999 to commence the gas spot market. This date will be reviewed in due course in light of updated analysis of a number of factors including the gas supply situation for next winter," he said.
Mr Stockdale also said the sale process for the State's gas companies would begin from Monday with the placement of advertisements seeking expressions of interest from potential bidders whom had not previously registered.
The Government's financial advisers for the gas privatisation process, Credit Suisse First Boston, will accept expressions of interest until December 4.