The JEC made submission to the Australian Energy Regulator’s Draft Decision on the Kurri Kurri Lateral Pipeline classification.
The JEC does not support classifying the 24-kilometre storage infrastructure and compressor station of the KKLP as a transmission pipeline. Our understanding of the proposal suggests this infrastructure should more appropriately be regarded as a dedicated storage asset associated with the Kurri Kurri gas generator, with its costs recovered directly from the operator of the generator.
We are concerned that classifying the storage infrastructure as a transmission pipeline has cost implications for consumers and is, consequently, not in the long-term interests of gas consumers. Classification as a transmission asset may result in gas consumers carrying associated costs and effectively subsidising an electricity generation asset, benefitting the operators of the generator.
