Imposing heavier price regulation on a key gas pipeline in south-west Queensland will push up energy bills for households and industry, and worsen the risk of shortages, APA Group chief executive Adam Watson warns.

The Australian Energy Regulator’s review of regulation for the South West Queensland pipeline, announced in February, has already forced APA to pause about $200 million of investment planned for the third phase of expansion of its east coast gas grid, said Mr Watson.