Gas Variation Regulations 2004 (SA)
South Australia
Gas Variation Regulations 2004
under the Gas Act 1997
Contents
Part 1—Preliminary
Short title
Commencement
Variation provisions
Part 2—Variation of Gas Regulations 1997
Variation of regulation 4—Interpretation
Variation of regulation 5—Interpretation of certain terms used in Act
Insertion of Part 1A
Part 1A—Administration
6Functions and powers of Commission
Variation of regulation 6A—Exemption from requirement to hold licence
Insertion of regulation 8AA
8AALicence condition requiring retailers to match available gas to customers' estimated aggregate demand
Insertion of regulation 8AB
8ABLicence condition requiring pricing information for small customers
Revocation of regulation 8C
Insertion of Parts 2A, 2B and 2C
Part 2A—Price regulation
8EPrice regulation—prescribed class of customers
Part 2B—Standard terms and conditions
8FStandard terms and conditions—prescribed class of customers
Part 2C—Default contracts
8GInterpretation
8HProvisions relating to default contracts
Substitution of regulations 11 and 12
11Obligations of distribution system operator in relation to quality of gas
12Obligations of retailer in relation to quality of gas
Revocation of regulations 16 and 17
Variation of Schedule 1A—Gas specifications
Part 1—Preliminary
1—Short title
These regulations may be cited as the Gas Variation Regulations 2004.
2—Commencement
These regulations (other than regulations 10 and 11) come into operation on the day on which they are made.
Regulations 10 and 11 will come into operation on the day on which section 34B of the Gas Act 1997 (as inserted by section 29 of the Statutes Amendment (Gas and Electricity) Act 2003) comes into operation.
3—Variation provisions
In these regulations, a provision under a heading referring to the variation of specified regulations varies the regulations so specified.
Part 2—Variation of Gas Regulations 1997
4—Variation of regulation 4—Interpretation
Regulation 4—after the definition of AS 4551 insert:
AS 4564 means AS 4564/AG 864—Specification for General Purpose Natural Gas published by The Australian Gas Association, as in force from time to time (including any code or standard called up by or under AS 4564);
Regulation 4—after the definition of AS 5601 insert:
business day means a day other than a Saturday or a Sunday or other public holiday;
Regulation 4—after the definition of distribution system operator insert:
flame speed factor means the flame speed factor determined in accordance with the formula set out in Schedule 1;
inset distribution system means a distribution system that serves only a group of premises or parts of premises in the same ownership or subject to the same community plan or strata plan under the Community Titles Act 1996 or Strata Titles Act 1988;
Regulation 4—after the definition of liquefied petroleum gas insert:
natural gas has the same meaning as in AS 4564;
prescribed transmission pipeline means a pipeline in respect of which any of the following licences has been granted under the Petroleum Act 2000:
PL1
PL3
PL4
PL6
PL11
PL13;
Regulation 4—after the definition of retailer insert:
sooting index means the sooting index determined in accordance with the formula set out in Schedule 1;
Regulation 4—after the definition of Type B appliance insert:
Wobbe Index has the same meaning as in AS 4551.
5—Variation of regulation 5—Interpretation of certain terms used in Act
Regulation 5(1)(a)—delete paragraph (a) and substitute:
, prescribed transmission pipelines are declared to form part of a distribution system.
Regulation 5(3)—delete subregulation (3) and substitute:
(3)For the purposes of the definition of retailing in section 4 of the Act, retailing does not include—
(a)a customer charging for the supply of gas if the charge forms an unspecified part of rent or charges for the occupation or use of premises; or
(b)a customer charging for the supply of gas if—
(i)the charge is a specified amount for gas supplied by the customer to another person during a period through an inset distribution system; and
(ii)the charge does not exceed an amount determined as follows:
where—
A is the amount to be determined;
B is the cost to the customer of the gas supplied to the inset distribution system during the period;
C is the quantity of gas drawn from the system by the other person during the period (or a reasonable estimate of the quantity);
D is the total quantity of gas drawn from the system during the period; and
(iii)the customer gives the other person, when charging the other for the supply of gas, written notice of—
(A)the cost to the customer of the gas supplied to the inset distribution system during the period; and
(B)the quantity of gas drawn from the system by the other person during the period (or if the quantity is estimated, the quantity estimated and the basis of the estimate).
(3a)For the purposes of the definition of retail market rules in section 4 of the Act, interactions between any of the following persons is prescribed as a matter to which the rules may relate:
(a)persons referred to in paragraph (a) of the definition;
(b)persons who operate prescribed transmission pipelines;
(c)persons who acquire, hold or dispose of rights to prescribed transmission pipeline capacity;
(d)persons who contract for the conveyance of gas with persons having rights to prescribed transmission pipeline capacity.
(3b)For the purposes of the definition of retail market rules in section 4 of the Act—
(a)the following provisions govern the process for approval by the Commission of amendments of retail market rules:
(i)the retail market administrator may submit a proposed amendment of a rule to the Commission;
(ii)the proposed amendment must be accompanied by a statement of reasons and other information as required by the Commission by condition of the retail market administrator's licence;
(iii)the Commission then has an initial period of 30 business days from its receipt of the material referred to in subparagraphs (i) and (ii) to consider the proposed amendment and notify the retail market administrator of its response;
(iv)however—
(A)the Commission may notify the retail market administrator that it requires further information to be submitted to it by the retail market administrator, in which case, the period for consideration of the proposed amendment is suspended until the Commission receives the further information; and
(B)the Commission may notify the retail market administrator that it requires further time to consider the proposed amendment, in which case, the period for consideration of the proposed amendment is extended by a period not exceeding 20 business days specified by the Commission;
(v)the Commission's response to the proposed amendment must take the form of rejection of the proposed amendment or approval of the proposed amendment or approval of the proposed amendment on the condition that a specified change is made to the proposed amendment;
(vi)material must be submitted to the Commission by the retail market administrator by writing delivered to the office of the Commission or sent by facsimile transmission or e-mail to a number or address specified by the Commission;
(vii)a response or other decision must be notified to the retail market administrator by the Commission by writing delivered to the office of the retail market administrator or sent by facsimile transmission or e-mail to a number or address specified by the retail market administrator;
(b)a proposed amendment will be deemed to have the approval of the Commission if—
(i)having been submitted to the Commission in accordance with paragraph (a), the Commission fails to notify the retail market administrator of its response within the period allowed for that purpose under that paragraph; or
(ii)having been approved by the Commission in accordance with paragraph (a) on the condition that a specified change is made to it, the retail market administrator makes the amendment with that change.
6—Insertion of Part 1A
After Part 1 insert:
Part 1A—Administration
6—Functions and powers of Commission
Pursuant to section 6A of the Act, the Commission has (in addition to the Commission's functions and powers under the Act and the Essential Services Commission Act 2002) the function of determining, in accordance with a process specified by the Minister by notice in the Gazette, and at the expense of one or more of the entities, any matter in dispute between 2 or more gas entities that falls within a range of matters specified by the Minister by notice in the Gazette.
7—Variation of regulation 6A—Exemption from requirement to hold licence
Regulation 6A(1)—delete subregulation (1) and substitute:
(1)A person who carries on the operation of a distribution system is not required to be licensed under the Act if the system consists only of an inset distribution system.
Regulation 6A(2)—delete "pipeline referred to in regulation 5(1)(a)" and substitute:
prescribed transmission pipeline
Regulation 6A(4)—delete "An exemption" and substitute:
Subject to these regulations, an exemption
8—Insertion of regulation 8AA
After regulation 8 insert:
8AA—Licence condition requiring retailers to match available gas to customers' estimated aggregate demand
The Commission must make a licence authorising the retailing of gas subject to a condition requiring the gas entity to ensure that at all times the quantity of gas available to it for delivery to its customers from a distribution system is sufficient to meet reasonable forecasts of its customers' aggregate demand for gas from the distribution system.
9—Insertion of regulation 8AB
After regulation 8A insert:
8AB—Licence condition requiring pricing information for small customers
For the purposes of section 26A(2)(d) of the Act, 1 January 2005 is the prescribed date.
10—Revocation of regulation 8C
Regulation 8C—delete the regulation
11—Insertion of Parts 2A, 2B and 2C
After Part 2 insert:
Part 2A—Price regulation
8E—Price regulation—prescribed class of customers
For the purposes of section 33(1)(a) of the Act, each customer whose annual gas consumption level for a metered delivery point equals or exceeds one terajoule but is less than 10 terajoules is a customer of a prescribed class in relation to gas supply to the customer through the delivery point.
Part 2B—Standard terms and conditions
8F—Standard terms and conditions—prescribed class of customers
For the purposes of section 34(1) of the Act—
(a)each customer whose annual gas consumption level for a metered delivery point equals or exceeds 10 terajoules is a customer of a prescribed class in relation to gas supply to the customer through the delivery point;
(b)each customer whose annual gas consumption level for a metered delivery point equals or exceeds one terajoule but is less than 10 terajoules is a customer of a prescribed class in relation to gas supply to the customer through the delivery point.
Part 2C—Default contracts
8G—Interpretation
In this Part—
default contract means a retail contract under which a gas entity to which section 34B of the Act applies sells gas at the entity's default contract price and subject to the entity's default contract terms and conditions;
default contract price and default contract terms and conditions have the same respective meanings as in section 34B of the Act;
excluded area means an area that is for the time being determined by the Minister to be an excluded area;
market contract means a retail contract other than a standing contract or default contract;
standing contract means a retail contract under which a gas entity to which section 34A of the Act applies sells gas at the entity's standing contract price and subject to the entity's standing contract terms and conditions;
standing contract price and standing contract terms and conditions have the same respective meanings as in section 34A of the Act.
8H—Provisions relating to default contracts
(1)If a person receives gas supply through a metered delivery point otherwise than under a retail contract—
(a)that person; and
(b)the gas entity that was last a party to a retail contract in relation to that delivery point,
become parties to a default contract in relation to that delivery point for the purposes of section 34B(2) of the Act.
(2)Subregulation (1) does not apply in relation to a metered delivery point situated within an excluded area.
(3)The default contract continues until—
(a)the customer becomes a party to a market contract or standing contract (whether with the same entity or some other gas entity) in relation to the delivery point; or
(b)some other person becomes a party to a retail contract in relation to the delivery point; or
(c)the occurrence of an event of a kind determined by the Commission.
(4)On the gas entity becoming aware that it has become a party to the default contract, the entity must, within 5 business days, give the customer a written notice setting out the terms and conditions of the default contract and describing, in general terms, the other contractual options that may be available to the customer for the purchase of gas.
(5)The gas entity must, in giving notice under subregulation (4), comply with any requirements imposed by a code made by the Commission under the Essential Services Commission Act 2002, relating to the contents of the notice or the manner in which the notice is to be given.
(6)For the purposes of the definition of default contract price in section 34B(3) of the Act, the prescribed period is—
(a)before 1 September 2004—5 days; or
(b)on or after 1 September 2004—28 days.
12—Substitution of regulations 11 and 12
Regulations 11 and 12—delete the regulations and substitute:
11—Obligations of distribution system operator in relation to quality of gas
(1)A distribution system operator must ensure that the following requirements are complied with in relation to gas distributed by the system:
(a)the gas must—
(i)be at a safe temperature and pressure and safe in all other respects for the purposes of the system; and
(ii)contain sufficient odorant that it has a distinctive smell to a person with a normal sense of smell at one-fifth of the lower explosive limit in air; and
(iii)comply with the relevant specifications set out in Schedule 1A (unless otherwise agreed between the Technical Regulator and the operator);
(b)before connection or reconnection of a gas supply to a place, steps must be taken to ensure that the gas supply is suitable for each gas installation situated in the place that will be connected to the gas supply;
(c)the gas must be supplied so that—
(i)the operating pressure of the gas at the outlet of each meter set for recording a customer's consumption of gas is 1kPa or more but less than 3kPa subject to any written requirement of the customer or agreement between the Technical Regulator and the operator for gas to be supplied at more than 3kPa; and
(ii)the pressure of the gas at each such meter set is within the meter set manufacturer's designated pressure operating range.
(2)For the purposes of ensuring compliance with subregulation (1)(b), reliance may be placed on a certificate of compliance issued for the purposes of section 56 of the Act in relation to the gas installation.
(3)Despite regulation 6A(4), a person who operates a prescribed transmission pipeline is not bound to comply with subregulation (1)(a)(ii).
12—Obligations of retailer in relation to quality of gas
(1)A retailer must ensure that the following requirements are complied with in relation to gas supplied by the retailer to a customer:
(a)before connection or reconnection of a gas supply to a place, steps must be taken to ensure that the gas supply is suitable for each gas installation situated in the place that will be connected to the gas supply;
(b)the heating value of the gas must, when measured at each measuring point approved by the Technical Regulator for that purpose, be within a margin of plus or minus 1 per cent of the claimed heating value used by the gas entity as the basis for its charges to the customer for the gas;
(c)the measured heating value of the gas must not show systematic bias within that margin.
(2)For the purposes of ensuring compliance with subregulation (1)(a), reliance may be placed on a certificate of compliance issued for the purposes of section 56 of the Act in relation to the gas installation.
13—Revocation of regulations 16 and 17
Regulations 16 and 17—delete the regulations
14—Variation of Schedule 1A—Gas specifications
Schedule 1A, clause 1—delete the clause
Schedule 1A, clause 2—delete the clause and substitute:
2—Specifications for natural gas
The specifications for natural gas are the limits set out in AS 4564 for general purpose natural gas (within the meaning of that Standard).
Note—
As required by section 10AA(2) of the Subordinate Legislation Act 1978, the Minister has certified that, in the Minister's opinion, it is necessary or appropriate that these regulations come into operation as set out in these regulations.
Made by the Governor
with the advice and consent of the Executive Council
on 23 July 2004
No 156 of 2004
MENE001/04CS
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