Gas Act 1988 (SA)

(Reprint No. 3)

SOUTH AUSTRALIA

GAS ACT 1988

This Act is reprinted pursuant to the Acts Republication Act 1967 and incorporates all amendments in force as at 10 April 1997.

It should be noted that the Act was not revised (for obsolete references, etc.) by the Commissioner of Statute Revision prior to the publication of this reprint.

SUMMARY OF PROVISIONS

PART 1

PRELIMINARY

1.                    Short title

2.                    Commencement

3.                    Repeal

4.                    Interpretation

PART 2

LICENSED GAS SUPPLIERS

DIVISION 1—LICENSING

5.                    Obligation to be licensed

6.                    Application for licence

7.                    Licence fee

DIVISION 2—SPECIAL OBLIGATIONS OF LICENSED GAS SUPPLIERS

8.                    Duty to supply information

9.                    Investigations

PART 3

THE SUPPLY OF RETICULATED GAS

DIVISION 1—SPECIAL POWERS OF LICENSED GAS SUPPLIER

10.                  Compulsory acquisition of land

11.                  Power to lay pipes, etc., in a street or road

DIVISION 2—POWERS OF ENTRY

12.                  Powers of entry, etc.

13.                  Powers of inspection

DIVISION 3—PROTECTION OF PROPERTY IN GAS RETICULATION SYSTEM

14.                  Property of licensed gas supplier does not merge with land

15.                  Restriction on dealings affecting gas reticulation system

DIVISION 4—PRICE OF RETICULATED GAS

16.                  Fixation of maximum prices for reticulated gas

17.                  Power to cut off gas supply

18.                  Testing of metering equipment

DIVISION 5—TEMPORARY GAS RATIONING

19.                  Temporary gas rationing

PART 4

GAS APPLIANCES AND INSTALLATIONS

20.                  Interpretation

21.                  Approval and labelling of gas appliances

22.                  Certain gas fitting work

23.                  Powers of entry in relation to gas appliances and installations

PART 5

MISCELLANEOUS

29.                  Unlawful diversion of gas

30.                  Wilful damage

31.                  Exclusion of certain liability

32.                  Service

33.                  Summary Offences

34.                  Regulations

APPENDIX

LEGISLATIVE HISTORY

GAS ACT 1988

being

Gas Act 1988 No. 24 of 1988 [Assented to 21 April 1988]1

as amended by

Plumbers, Gas Fitters and Electricians Act 1995 No. 25 of 1995 [Assented to 27 April 1995]2 Gas (Miscellaneous) Amendment Act 1995 No. 76 of 1995 [Assented to 23 November 1995]Gas (Appliances) Amendment Act 1997 No. 4 of 1997 [Assented to 27 February 1997]3

1 Came into operation 1 June 1988:Gaz. 26 May 1988, p. 1332.

2 Came into operation 1 July 1995:Gaz. 29 June 1995, p. 2977.

3 Came into operation 10 April 1997:Gaz. 10 April 1997, p. 1457.

NOTE:

Asterisks indicate repeal or deletion of text.

Entries in bold type indicate the amendments incorporated since the last reprint.

For the legislative history of the Act see Appendix.

An Act to regulate the supply of gas; to make provision for safety and technical standards for gas appliances and installations; to repeal the Gas Act 1924 and the South Australian Gas Company Act 1861; and for other purposes.

The Parliament of South Australia enacts as follows:

PART 1

PRELIMINARY

Short title

1. (1) This Act may be cited as the Gas Act 1988.

Commencement

2. (1) This Act will come into operation on a day to be fixed by proclamation.

(2) The Governor may, in a proclamation fixing a day for this Act to come into operation, suspend the operation of specified provisions of this Act until a subsequent day fixed in the proclamation, or a day to be fixed by subsequent proclamation.

Repeal

3. The following Acts are repealed:

the Gas Act 1924

the South Australian Gas Company Act 1861.

Interpretation

4. (1) In this Act, unless the contrary intention appears—

"apparatus" includes meters, fittings and appliances;

"authorised person" means a person authorised by the Minister to exercise the powers of an

authorised person under this Act;

"consumer" means an occupier of premises to which reticulated gas is supplied;

"gas" means a gaseous fuel consisting of hydrocarbons or predominantly of hydrocarbons;

"gas reticulation system" means a system under which consumers are supplied with gas by means of pipes connecting the consumers’ premises with a gas mains that passes under a public street, road or place;

"land" includes—

(a)	any estate or interest in land;
(b)	any rights in respect of land;

"quarter" means a period of three months commencing on the first day of July, the first day of

October, the first day of January, or the first day of April;

"reticulated gas" means gas supplied by means of a gas reticulation system;

"road" means a street, road or thoroughfare (including one that is in the course of construction

and not yet available for public use);

"share" in a body corporate includes any interest in the capital of the body corporate (except

such an interest that exists only by way of security).

(2) For the purposes of this Act, a person has a significant shareholding in a body corporate

if—

(a)

that person has a legal or equitable interest in shares in the body corporate or is in a position to control or substantially influence the exercise of rights attaching to ownership of shares in the body corporate; and

(b)

those shares—

(i)	represent more than 5 per cent of the total number of issued shares in the body corporate; or
(ii)	represent more than 5 per cent of the paid-up share capital of the body corporate; or
(iii)	carry more than 5 per cent of the voting rights exercisable at a general meeting of the body corporate.

* * * * * * * * * *

PART 2

LICENSED GAS SUPPLIERS

DIVISION 1—LICENSING

Obligation to be licensed

5. A person must not carry on the business of supplying reticulated gas unless licensed to do so under this Part.

Penalty: $100 000.

Application for licence

6. (1) The Minister is the licensing authority to whom applications for licences under this Part are to be made.

(2) The Minister has a discretion to grant or refuse an application for a licence.

(3) Such an application—

(a)	must be in a form approved by the Minister; and
(b)	must be supported by such information as the Minister requires.

Licence fee

7. (1) A licence fee is payable in respect of each financial year.

(2) Subject to subsection (3), the licence fee is—

(a)	five per cent of gross revenue derived by the licensee from the sale of reticulated gas during the previous financial year; or
(b)	if the licensee did not supply reticulated gas throughout the previous financial year, or fails to supply the Minister with satisfactory evidence enabling the calculation of the fee under paragraph (a)—a fee fixed at the Minister’s discretion.

(3) The regulations may exclude gas supplied to certain consumers or certain classes of consumers from the calculation of licence fees.

(4) The licence fee is payable in equal instalments—

(a)	in relation to a financial year that commences after the grant of the licence—on or before the last day of each quarter of the financial year; or
(b)	in relation to a financial year during the course of which the licence was granted—on or before such dates in that financial year as may be fixed by the Minister.

(5) If an instalment of licence fee is not paid on or before the day on which it becomes payable—

(a)	the Minister may recover it from the licensee as a debt; and
(b)	the Minister has a discretion to suspend or cancel the licence.

(6) In proceedings for recovery of arrears of licence fee, a document apparently signed by the Minister stating the amount of the arrears will be accepted, in the absence of proof to the contrary, as proof of that amount.

DIVISION 2—SPECIAL OBLIGATIONS OF LICENSED GAS SUPPLIERS

Duty to supply information

8. (1) A licensed gas supplier must, at the request of the Minister, supply the Minister with such information as may be specified in the request relating to—

(a)	the corporate structure of the supplier and any related body corporate; or
(b)	shareholding in the supplier and any related body corporate; or
(c)	the assets and liabilities (including contingent liabilities) of the supplier; or
(d)	the acquisition and supply of gas by the supplier; or
(e)	any matter relevant to the calculation of a licence fee.

(2) A licensed gas supplier that fails to comply with a request under this section within the time allowed in the request is guilty of an offence.

Penalty: $50 000.

(3) It is a defence to a charge of an offence against subsection (2) to prove that the information sought in the request was not reasonably accessible to the licensed gas supplier.

(4) In this section—

"related body corporate", in relation to a licensed gas supplier, means a body corporate—

(a)	that is a subsidiary of the licensed gas supplier; or
(b)	of which the licensed gas supplier is a subsidiary; or
(c)	that has a significant shareholding in the licensed gas supplier; or
(d)	in which the licensed gas supplier has a significant shareholding.

Investigations

9. (1) The Minister may appoint an investigator to enquire into, and report on—

(a)

the affairs of a licensed gas supplier; or

(b)

any matter affecting presently or prospectively—

(i)	the supply of gas within the State; or
(ii)	the price of gas to consumers within the State.

(2) The Auditor-General must, at the request of the Minister, audit the accounts of a licensed gas supplier.

PART 3

THE SUPPLY OF RETICULATED GAS

DIVISION 1—SPECIAL POWERS OF LICENSED GAS SUPPLIER

Compulsory acquisition of land

10. (1) A licensed gas supplier may compulsorily acquire land required by it for the manufacture, treatment, storage or reticulation of gas.

(2) The Land Acquisition Act 1969 applies to the acquisition of land under subsection (1).

(3) This section does not affect any power to acquire land that exists apart from this section.

Power to lay pipes, etc., in a street or road

11. (1) A licensed gas supplier—

(a)	may lay or install pipes and apparatus under any public road for the purpose of reticulating gas; and
(b)	may excavate a public road for the purpose of laying or installing pipes or apparatus in pursuance of paragraph (a), or for the purpose of inspecting, repairing or replacing pipes or apparatus previously laid or installed.

(2) The supplier must, at least seven days before it exercises powers conferred by subsection (1) in relation to a road, give to the authority in which the control or management of the road is vested notice of its intention to exercise those powers and of the part of the road to be affected.

(3) Notice is not required under subsection (2) in an emergency or in circumstances of imminent danger to life or property.

(4) The supplier must, as soon as practicable, make good any damage to a road arising from the exercise of powers conferred by this section.

DIVISION 2—POWERS OF ENTRY

Powers of entry, etc.

12. (1) An authorised person may enter premises at any reasonable time for the purpose of—

(a)	examining or testing any part of a gas reticulation system or any apparatus associated with it;
(b)	testing the pressure or quality of gas in a gas reticulation system;
(c)	taking any action that may be necessary to avert danger from a fault in a gas reticulation system or from abnormal conditions affecting it.

(2) Except in an emergency, an authorised person may only enter residential premises under this section after reasonable notice to the occupier.

(3) A person who obstructs an authorised person in the exercise of powers conferred by this section is guilty of an offence.

Penalty:	$10 000.
Powers of inspection

13. (1) An employee of a licensed gas supplier, who is authorised by the supplier to do so, may at any reasonable time—

(a)	enter premises to which gas is supplied for the purpose of inspecting or repairing pipes or apparatus of the supplier in those premises; and
(b)	carry out any work necessary to obtain access to any such pipes or apparatus; and
(c)	inspect or repair the pipes or apparatus (but any structural damage to the premises resulting from the exercise of any such power must be made good).

(2) Where, in the opinion of an employee who has entered premises in accordance with this section, an apparatus is unsafe, the employee or the supplier may interrupt or disconnect the supply of gas to those premises.

(3) An employee who has entered, or proposes to enter, premises in pursuance of this section must, at the request of the owner or occupier of the premises, produce a certificate of authority, signed by an officer of the supplier, certifying that the employee is authorised by the supplier to exercise the powers conferred by this section.

(4) A person who prevents an employee from exercising powers conferred by this section, or hinders the exercise of those powers, is guilty of an offence.

Penalty: $2 000.

DIVISION 3—PROTECTION OF PROPERTY IN GAS RETICULATION SYSTEM

Property of licensed gas supplier does not merge with land

14. Unless a licensed gas supplier agrees in writing to the contrary, any pipes or apparatus laid or installed by the supplier remain the property of the supplier.

Restriction on dealings affecting gas reticulation system

15. (1) A licensed gas supplier cannot, without the Minister’s consent, dispose of its gas reticulation system or any part of its gas reticulation system (but this subsection does not prevent the disposal of apparatus or equipment in the ordinary course of its business as the operator of a gas reticulation system).

(2) The following property of a licensed gas supplier cannot be seized and dismantled in execution of a judgment—

(a)	a gas reticulation system;
(b)	any apparatus associated with a gas reticulation system.

(3) This section does not prevent the sale of a gas reticulation system as a going concern in execution of a judgment.

DIVISION 4—PRICE OF RETICULATED GAS

Fixation of maximum prices for reticulated gas

16. (1) The Minister may, by notice in the Gazette, fix the maximum prices (which may vary

according to factors stated in the notice) that a licensed gas supplier may charge for reticulated gas.

(2) Maximum prices may only be fixed under this section after consideration of a recommendation from the Prices Commissioner.

(3) If an agreement exists between the State and a licensed gas supplier as to the factors to which the Prices Commissioner must have regard in making a recommendation under this section, the Prices Commissioner is bound by the terms of that agreement.

(4) The Minister—

(a)

must, at the request of a licensed gas supplier, have the Prices Commissioner conduct a review of the maximum prices fixed under this section; and

(b)

must, within 10 weeks of the date of the request or such longer period as may be agreed by the licensed gas supplier—

(i)	inform the supplier of the result of the review; and
(ii)	make any adjustment to the maximum price of gas that the Minister considers desirable after consideration of the Prices Commissioner’s recommendation.

(5) A licensed gas supplier must not charge a price for reticulated gas in excess of the relevant maximum fixed under this section.

Penalty: $10 000.

(6) If a licensed gas supplier is convicted of an offence against subsection (5), any amount charged in excess of the permitted maximum must be credited to the accounts of the consumers against whom the excessive charges were made.

Power to cut off gas supply

17. (1) Subject to the terms of any agreement with a licensed gas supplier to the contrary, the occupier of premises is liable to the supplier for the price of reticulated gas supplied to the premises.

(2) Where—

(a)	the licensed gas supplier renders a proper account to the occupier for gas supplied to premises;
(b)	the account is not paid on or before a date for payment specified in the final notice of the account (which must be a date falling at least 7 days after the date of the notice),

the supplier may, after giving not less than 48 hours’ notice in writing to the occupier, cut off the

supply of gas to the premises.

(3) Where a licensed gas supplier cuts off the supply of gas in pursuance of this section, an employee of the supplier, who is authorised by the supplier to do so, may, after giving at least 48 hours’ notice in writing both to the owner and the occupier of the premises, enter the premises and remove pipes and apparatus belonging to the supplier.

(4) An employee of the supplier who has entered, or proposes to enter, premises in pursuance of this section must, at the request of the owner or occupier of the premises, produce a certificate of authority, signed by an officer of the supplier, certifying that the employee is authorised by the supplier to exercise the powers conferred by subsection (3).

(5) A person who prevents an employee of the supplier from exercising powers conferred by this section, or hinders the exercise of those powers, is guilty of an offence.

Penalty: $2 000.

(6) A notice under this section may be served personally, by post, or by affixing it in a prominent position on the premises to which it relates.

Testing of metering equipment

18. (1) A licensed gas supplier must, at the request of a consumer, have a test made of the accuracy of metering equipment installed to measure the consumer’s consumption of gas.

(2) A request under this section must be accompanied by the prescribed fee.

(3) The consumer must be supplied with a written report on the results of the test.

(4) If, on the test, the metering equipment does not function within prescribed tolerances of accuracy—

(a)	it must be replaced at the expense of the licensed gas supplier; and
(b)	the fee paid by the consumer must be refunded.

(5) In proceedings for recovery of the price of gas supplied to any premises, the accuracy of metering equipment installed to measure the volume of gas supplied will be presumed in the absence of proof to the contrary.

DIVISION 5—TEMPORARY GAS RATIONING

Temporary gas rationing

19. (1) If for any reason the volume of gas available for supply through a gas reticulation system is insufficient to meet the requirements of all consumers who draw gas from that system—

(a)	the Minister may, by notice in writing given personally or by post to the licensed gas supplier by which the system is operated, give directions to ensure the most efficient and appropriate use of the available gas; and
(b)	the Minister may, by notice published in such manner as may be appropriate in the circumstances, direct consumers not to draw gas from the system except for the purposes (if any) allowed by the directions.

(2) A direction under this section will operate for a period (not exceeding 30 days) specified in the notice by which the direction is given.

(3) No civil liability arises from compliance with a direction under this section.

(4) A person who fails to comply with a direction under this section is guilty of an offence.

Penalty—

(a)	if the offender is a licensed gas supplier—$50 000;
(b)	if the offender is a consumer—$2 000.

PART 4

GAS APPLIANCES AND INSTALLATIONS

Interpretation

20. In this Part—

"gas appliance" means an appliance that uses gas as a fuel, but does not include anything

declared by regulation not to be a gas appliance;

"gas installation" means fixed pipes and any fixed gas appliances, and associated equipment, installed in a place for the conveyance, control, measurement or use of gas that is, is to be, or has been, supplied (whether by a gas reticulation system or pressurised vessel) for consumption in the place, but does not include anything declared by regulation not to be a gas installation;

"label" includes a stamp or mark;

"sell" includes—

(a)	let on hire;
(b)	advertise for sale or hire;
(c)	offer or expose for sale or hire,

and "sale" has a corresponding meaning;

"trader" means a person who sells gas appliances in the course of a trade or business.

Approval and labelling of gas appliances

21. (1) A trader must not sell a gas appliance of a declared class unless—

(a)	it is of a kind approved by a declared body or the Minister; and
(b)	it is labelled, under the authority of the declared body or Minister, to indicate that approval.

Maximum penalty: $5 000.

Expiation fee: $315.

(2) No offence is committed under subsection (1) if the sale takes place within six months after the relevant class of appliances is declared.

(3) The Minister may, by notice in the Gazette—

(a)	declare a specified class of gas appliances for the purposes of this section;
(b)	declare a specified body for the purposes of this section;
(c)	vary or revoke a notice previously made under this section.

Certain gas fitting work

22. (1) A person who carries out work on a gas installation or proposed gas installation must ensure that—

(a)	the work is carried out as required under the regulations; and
(b)	examinations and tests are carried out as required under the regulations; and
(c)	the requirements of the regulations as to notification and certificates of compliance are complied with.

Maximum penalty: $5 000.

Expiation fee: $315.

(2) If a person has a licensed gas fitting contractor carry out the work, this section does not apply to the person but applies to the contractor.

(3) If a person (other than a licensed gas fitting contractor) has a registered gas fitting worker carry out the work, this section does not apply to the person but applies to the worker.

Powers of entry in relation to gas appliances and installations

23. (1) An authorised person may enter premises at any reasonable time for the purposes of—

(a)	examining or testing a gas appliance or a gas installation; or
(b)	taking action necessary to avert danger from a fault in a gas appliance or gas installation or from abnormal conditions affecting the appliance or installation; or
(c)	otherwise administering or enforcing this Part.

(2) Except in an emergency, an authorised person may only enter residential premises under this section after reasonable notice to the occupier.

(3) A person who obstructs an authorised person in the exercise of powers conferred by this

section is guilty of an offence. Maximum penalty: $10 000.

PART 5

MISCELLANEOUS

* * * * * * * * * *

Unlawful diversion of gas

29. A person who, without the consent of a licensed gas supplier diverts gas from any pipe or apparatus laid or installed by the supplier is guilty of an offence.

Penalty:	$10 000.
Wilful damage

30. (1) A person who, without the consent of a licensed gas supplier, wilfully damages, interferes with or removes any pipes, apparatus or equipment belonging to the supplier, or under its control, is guilty of an offence.

Penalty: $10 000.

(2) A person who, without the consent of a licensed gas supplier, wilfully uses apparatus or equipment belonging to the supplier contrary to instructions given by the supplier or clearly indicated on the apparatus or equipment itself, is guilty of an offence.

Penalty: $10 000.

(3) A person who, without the consent of a licensed gas supplier wilfully—

(a)	operates any equipment that is the property of the supplier; or
(b)	shuts off or restricts the flow of gas through any pipe or apparatus that is the property of the supplier,

is guilty of an offence.

Penalty: $10 000.

(4) The court before which a person is convicted of an offence against this section may order the convicted person to pay the supplier such compensation as it thinks fit.

Exclusion of certain liability

31. A licensed gas supplier is not liable for loss or damage resulting from cutting off, or failing to supply, gas to any premises.

Service

32. A notice required or permitted to be served by this Act may be served personally or by

post.

Summary Offences

33. (1) An offence against this Act is a summary offence.

(2) If, in proceedings for an offence against this Act, the defendant is alleged to have acted without a consent required by this Act, the absence of consent will be presumed unless it is established that the necessary consent was in fact given.

Regulations

34. (1) The Governor may make such regulations as are contemplated by this Act, or as are necessary or expedient for the purposes of this Act.

(2) Without limiting the generality of subsection (1), those regulations may—

(a)	require a licensed gas supplier to install and operate specified equipment to monitor the pressure and quality of gas supplied through a gas reticulation system;
(b)	prescribe (within specified tolerances) the pressure at which gas must be supplied through a gas reticulation system;
(c)	prescribe the criteria of composition and quality with which gas supplied through a gas reticulation system must comply;
(d)	require a licensed gas supplier to have metering equipment tested before installation and to have periodic tests of its accuracy made subsequently;
(e)	prescribe penalties (not exceeding $2 000) for contravention of, or non-compliance with, a regulation.

(3) The regulations may—

(a)	vary in their operation according to time, place or circumstance;
(b)	confer discretionary powers;
(c)	incorporate or operate by reference to a specified code, standard or other document as in force at a specified time or as in force from time to time.

* * * * * * * * * *

APPENDIX

LEGISLATIVE HISTORY

(entries in bold type indicate amendments incorporated since the last reprint)

Long title:	amended by 4, 1997, s. 3
Section 4(1):	definitions of "appointed day", "gas fitting", "the holding company", "PASA", "related corporation", "SAOG" and "the utility company" repealed by 76, 1995, s. 2(a)
Section 4(3):	repealed by 76, 1995, s. 2(b)
Section 8(4):	inserted by 76, 1995, s. 3
Part 4 comprising ss. 20 - 27 and headings repealed by 76, 1995, s. 4;

ss. 20 - 23 and heading inserted by 4, 1997, s. 4

Section 28:	repealed by 25, 1995, Sched. 2 cl. 1(b)
Section 34(3):	amended by 4, 1997, s. 5
Schedule:	repealed by 76, 1995, s. 5