Gas Industry Framework

The existing Victorian gas industry was restructured from a State-owned monopoly to a competitive industry, based on providing the lowest possible cost and better service to customers. In March 1997 the Government announced the decision to disaggregate Gascor (formerly Gas and Fuel) into at least three businesses, each comprising a distributor owning pipes in a defined geographical area, with a related or "stapled" retailer. The new businesses commenced operation as divisions of Gascor on 1 July 1997, were fully corporatised in December 1997, and then sold to the private sector early in 1999. Multinet was issued with a licence to distribute gas in Victoria on 11 December 1997.

The Essential Services Commission (ESC) regulates gas distribution and retailing in Victoria pursuant to the Gas Industry Act 2001, the Essential Services Commission Act 2001, and the National Third Party Access Code for Natural Gas Pipeline Systems (the Code). Monopoly gas distributors are primarily regulated by Access Arrangements that have been approved for a fixed period by the Commission consistent with the Code.

The current Access Arrangements for Multinet Gas, approved by the ESC and shown on the Public Register, sets out fair and reasonable terms and conditions for third parties to access the monopoly distribution gas networks for the calendar years 2003-07. Further information on Multinet's Access Arrangement is available here. Multinet is subject to licences , Codes and Guidelines issued by the Essential Services Commission (ESC). The ESC also sets minimum technical performance standards with which all distributors must comply.

Gas is not currently distributed throughout all of Victoria. The regulatory framework provides scope for extensions of the gas network. On 8 November 2004 the State Government of Victoria announced agreement with Multinet Gas to make reticulated natural gas available to Yarra Glen, Wandin, Seville, Seville East, Woori Yallock, Launching Place, Yarra Junction, Wesburn and Millgrove. For more information on this project go to Natural Gas to the Yarra Ranges.

On 5 August 2005 the State Government of Victoria announced that Multinet Gas, with the support of the State Government of Victoria's $70 Million Natural Gas Extension Program, will reticulate natural gas in five South Gippsland towns: Inverloch, Korumburra, Lang Lang, Leongatha and Wonthaggi. For more information on this project go to Natural Gas to South Gippsland.