The Motivation and Effectiveness of Gas Industry Economic Regulation in N ew S outh W ales, 1912–39

The oldest industry in A ustralia subjected to economic regulation is the gas supply industry in the state of N ew S outh W ales. In this paper the aims and motivation of the N ew S outh W ales Government in establishing the regulatory regime in 1912 and the subsequent effectiveness in achieving them are determined. Initially the regulatory regime was based on ad hoc arrangements, but eventually a more permanent structure was devised that effectively defused political controversy over gas market pricing and stabilised prices rather than substantially lowered them.