History of an epic decision

March 1998 – Epic Energy purchased the 1,530 kilometre Dampier to Bunbury gas pipeline from the WA Government for $2.4 billion.

The purchase, Epic claims, was linked to tariffs of $1/GJ to transport gas to Perth, and $1.08/GJ south of Perth, from January 2000.

This detail is contained in the DBNGP Asset Sale Agreement.


February 1999 – The WA Government established an independent gas regulator office, OffGAR, and appointed Ken Michael as the regulator.

This meant monopoly pipelines in WA would be regulated by OffGAR, and not by the Australian Competition and Consumer Commission, as in other Australian States.


December 1999 – Epic Energy filed its DBNGP access arrangement, as required under the National Third Party Gas Access Code.

This arrangement contained the $1 and $1.08 tariffs.


June 2001 – Dr Michael issued a draft decision on Epic Energy’s access arrangement.

The decision recommended tariffs of $0.75 and $0.85, respectively.


November 2001 – Epic Energy challenged the draft decision in the WA Supreme Court.


August 2002 – The full court of the WA Supreme Court ruled there were errors of law in the draft decision, and asked the regulator to reconsider certain elements in determining a final decision.


December 2002 – The WA Supreme Court issued final declarative orders relating to its August 2002 decision.


May 2003 – The regulator issued a final DBNGP access arrangement decision.

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