Reader Response: Gas exception

I take great exception to last week’s column by Joe Poprzeczny, Bipartisan failure on energy policy.

Mr Poprzeczny attributes me as the source of a graph which sets out (alleged) gas transmission costs on the Dampier to Bunbury Natural Gas Pipeline (DBNGP) for the next 20 years. The graph paints a picture of rapidly increasing prices.

The illustration is quite nonsensical. It does not represent – in any fashion – the situation I outlined to Joe in our conversation. And at no stage did I attribute any dollar value to the transmission costs.

Nor am I in a position to do so. The real source of this information appears to be the fertile imagination of your columnist.

The facts are quite simple. The pipeline’s major customers have agreed to pay a higher, non-regulated tariff up until 2016, which will fund the much-needed expansion of the pipeline. After that date, the tariffs will revert to the regulated tariff applying at the time.

It should also be noted that gas transmission costs constitute a small portion of the overall cost of providing gas. The actual impact on the household gas bill will be an increase of around 40 cents a month.

I hope this clarifies the situation for your readers.

Bob Browning

CEO Alinta Ltd