Energy Coordination Act 1994

This Act organises gas sector regulation around a set of discrete legal concepts and instruments. The principal concepts and where they appear in the Act are:

• Supply area (s 11A). The Governor may constitute, amend or cancel supply areas by Gazette order (s 11A(1)). Supply areas may be non‑contiguous (s 11B). The creation, excision or cancellation of a supply area is constrained by an express public‑interest/standards requirement: excision or cancellation requires that supply will remain of an acceptable standard (s 11A(2)). The Minister must consult licensees materially affected before an order is made (s 11C).

• Licence classifications (s 11D). The Act creates two principal licence types. A distribution licence authorises construction and operation of distribution systems and transport of gas through them (s 11D(1)(a)). A trading licence authorises sale of gas to small use customers (s 11D(1)(b)). Licences are designated to particular supply areas or parts of them (s 11E).

• Small use customer (s 3 definition). The distinction matters for trading licence scope and for consumer protections (standard form contracts and ombudsman jurisdiction).

• Licensing mechanics (Div 3-4 of Part 2A). Applicants must use Authority‑approved forms and pay fees (s 11L, s 11Q). The Authority must be satisfied about the applicant’s financial and technical resources before granting (s 11S(1)). Licence terms and conditions are set by the Authority and must be substantially similar across licences of the same classification in the same area unless the Authority considers otherwise (s 11M(1), (4)). The Authority must publish licence grants, renewals and cancellations (s 11T, s 11ZE(3)).

• Standard form contracts, cooling‑off and default supplier arrangements (Div 4A). Trading licence applicants must submit a draft standard form contract; the Authority cannot grant a trading licence unless it has approved the standard form contract (ss 11WD-11WE). The Act provides for deemed contracts where customers take gas without entering an agreement and for determination and registry of default suppliers (ss 11WK-11WL).

• Retail market schemes and rules (Part 2B). A retail market scheme combines agreements among participants, a formal entity to administer the scheme, and retail market rules (s 11ZOF). The Act sets out the purposes of schemes (open, competitive, efficient, fair; s 11ZOB), who must be members (gas distribution operators and retail gas operators, s 11ZOC), who must comply with retail market rules (gas transmission operators and other prescribed persons, s 11ZOD), and the Authority’s approval, amendment and enforcement regime for schemes and rules (ss 11ZOI-11ZOM; enforcement Div 4).

• Last resort supply plans (Div 6A). The Authority must ensure each supply area with small use customers has an approved or determined last resort supply plan (s 11ZAB). Plans set arrangements for supply to small use customers when a supplier fails (ss 11ZAC-11ZAK).

• Exclusive licences and competition exceptions (Div 4B). Regulations can authorise exclusive licences for up to 10 years where necessary; such grants must provide for open tender and the Act provides a Trade Practices Act/Competition Code exemption to the extent the grant would otherwise contravene them (ss 11WM-11WQ).

• Enforcement tools and remedies. The Act gives the Authority powers to require rectification, impose monetary penalties, issue reprimands, and cause rectifications to be done at licensee cost (s 11ZB). The Authority can recover penalties and costs as debts due to the Crown (s 11ZB(4)). For conduct that prevents or hinders retail market schemes the Act creates civil remedies (Schedule 2A) including damages, injunctions and declaratory relief (Sch 2A).

• Inspectors and orders (Part 3). Inspectors designated by the Director have statutory powers to enter, inspect, test, require production of records, and make written orders to prohibit use, disconnect supply, or require remedial steps (ss 12-14, 18, 18A-18C). There are internal appeal and review routes (ss 19, 19A, 19B).

• Information, trade secrets and confidentiality. The Coordinator may compel information (s 21). Persons may mark items as trade secrets (s 22), which triggers heightened non‑disclosure protections (s 24AA) and a defined public‑interest disclosure and review route (s 24AB-24AC). General confidentiality obligations on officials are in s 24.

• Consumer protection and dispute resolution: code of conduct for marketing (Part 2C) with enforcement, vicarious liability and presumptions of authority provisions (ss 11ZPM-11ZPR); and gas industry ombudsman scheme approval and member obligations (Part 2D).

These concepts are integrated: licences link to retail schemes (membership conditions), contract approval links to licence grant, safety powers (inspectors and Director) can result in orders affecting network operators and customers, and the Authority holds supervisory and sanctioning powers across the system.

The Act’s legal objects create identifiable categories of affected parties and allocate costs, duties and decision rights among them:

• Licensees and applicants (ss 3, 11D, 11G, 11L). Anyone constructing, altering or operating a distribution system, or transporting gas through it in a supply area, must hold a distribution licence (s 11G(1)). Anyone selling gas transported through a distribution system to small use customers must hold a trading licence (s 11G(2)). Applicants must supply specified information to the Authority including business nature, pricing methods for trading licences and standards to be applied in supply (s 11L(2)). Licence holders must pay prescribed licence fees and anniversary fees (s 11Q).

• Network operators (s 3 definition; ss 18C, 14). Network operators of distribution systems are subject to inspector orders requiring remedial work and may be required to allow inspection, comply with safety directions and carry out specified work (s 18C(2), (8)). They are also the primary addressees for easement and land powers (ss 11ZK-11ZM).

• Trading licence holders and marketing agents (Part 2C). Trading licence holders must supply small use customers under an approved standard form contract or compliant non‑standard contract (ss 11WG, 11WE). Gas marketing agents acting for licensees or customers are regulated by the marketing code (s 11ZPL), and the code may create penalties and vicarious liability (ss 11ZPQ-11ZPR).

• Gas market participants in retail schemes and formal entities (Part 2B). Gas distribution operators and retail gas operators (s 11ZOC) must be members of approved retail market schemes (s 11ZOR). Gas transmission operators and other prescribed persons must comply with retail market rules (s 11ZOD). Formal entities that administer schemes may be directed and penalised by the Authority under ss 11ZPA-11ZPB.

• Small use customers (defined in s 3). They are the object of consumer protection measures: standard form contracts (Div 4A), cooling‑off and deemed contract rules (ss 11WC, 11WK), marketing code protections, and the ombudsman scheme (Part 2D, ss 11ZPX-11ZQZ).

• The Economic Regulation Authority (s 11AA). The Authority administers the licensing scheme, monitors operation and compliance (s 11AA), approves retail market schemes and codes, adjudicates standard form contracts and can impose penalties (ss 11ZOJ, 11WF, 11ZOU). It also receives audit reports and must report to the Minister on performance audits (s 11ZA(3)).

• The Coordinator and the Director (ss 4A, 7). The Coordinator and Director carry out monitoring, research promotion, advice, safety oversight, information collection, and may delegate and be subject to Ministerial directions (ss 4C-4D, 9-11, 21, 24).

• The Minister and Governor. The Minister gives directions to the Coordinator and Director (ss 4D, 10). The Governor may constitute supply areas (s 11A) and grant exemptions from licensing (s 11H) and make regulations authorising exclusive licences (s 11WM).

• Landholders and public authorities. The Act enables public authorities to grant easements to a licensee (s 11ZJ), and authorises taking interests or easements under the Land Administration Act processes for the purposes of supply (s 11ZK). The licensee bears costs of acquisition and is liable for compensation proceedings (ss 11ZK(3), 11ZM).

Who pays? Explicit cost allocations include licence fees payable to the Authority (s 11Q); possible recovery by distribution licensees of certain IT and retail competition implementation costs under regulations (s 11WR); costs and expenses of rectification recoverable by the Authority or Minister as a debt from licensees or former licensees (ss 11ZB(4), 11ZF(4)); and costs of taking easements borne by the licensee (s 11ZK(3)).

Who decides? The Authority exercises primary licensing and scheme‑approval decisions (ss 11AA, 11ZOJ). The Governor and Minister retain discrete statutory decision points (s 11A supply areas; s 11H exemptions; s 11WM exclusive‑licence regulations; Ministerial directions ss 4D, 10). Inspectors exercise on‑the‑ground safety judgments and may issue immediate orders (ss 14, 18-18C), subject to internal review and Director determinations (ss 19-19B). Courts and the State Administrative Tribunal (SAT) have review and enforcement roles under specified headings (11ZH; Sch 2A; 19B).

The Act structures specific duties and rights across licensing, safety, consumer protection, information and enforcement. Key duties include:

• Licence holding duty (s 11G). Constructing, altering, operating a distribution system or transporting gas in a supply area; and selling gas to small use customers, require the relevant licence. Offences carry significant fines and daily penalties (s 11G).

• Licensing compliance duties (ss 11M, 11Y, 11Z, 11ZA). Licence terms and conditions are set by the Authority (s 11M). Distribution licence holders must have an asset management system, notify the Authority of material changes and submit independent expert reports at least every 24 months (s 11Y). All licensees must comply with Gas Standards technical standards as prescribed (s 11Z). Performance audits are required at least every 24 months (s 11ZA(1)).

• Contractual and market duties (Div 4A). Trading licence holders must supply to small use customers under an Authority‑approved standard form contract or compliant non‑standard contract and comply with Authority directions to amend contracts (ss 11WG-11WI). Applicants for trading licences must submit a draft standard form contract with the application (s 11WD) and the Authority must approve it before grant (s 11WE).

• Retail market scheme duties (Part 2B). Gas distribution operators and retail gas operators must be members of approved retail market schemes and comply with retail market rules applicable to them (ss 11ZOC, 11ZOR); gas transmission operators and prescribed persons must comply with retail market rules (s 11ZOD). The formal entity administering a scheme must comply with Authority directions and reporting requirements (ss 11ZPA-11ZPB).

• Information and confidentiality duties. Persons required to provide information to the Coordinator must comply (s 21) and may mark items as trade secrets (s 22). Relevant officials must not disclose confidential information except in permitted circumstances (s 24) and have an enhanced duty regarding trade secrets (s 24AA). The Coordinator may determine that disclosure is in the public interest and a review process exists (s 24AB-24AC).

• Safety and inspector compliance (Part 3). Persons must not obstruct inspectors, must comply with inspectors’ requests and orders (ss 14, 18-18C, 20). Inspectors may disconnect supplies and issue prohibition orders (s 18(2); s 18A, 18B, 18C). Duty to leave a system in a safe condition after licence cancellation is imposed on former distribution licensees (s 11ZF).

Key rights and procedural protections include:

• Application and approval rights. Applicants have prescribed application routes, must be given notice of decisions and reasons for refusals (s 11L; s 11T(3)). The Authority must take reasonable steps to decide within 90 days (s 11S(2)).

• Opportunity to make submissions and to be heard. The Authority must give a licensee reasonable opportunity to make submissions before taking certain enforcement actions (s 11ZC). For penalty orders under the retail market enforcement provisions and for licence enforcement, the Authority must notify and afford reasonable opportunity to respond (ss 11ZOT(4), 11ZOU(4), 11ZP(3)).

• Review and appeal avenues. Persons adversely affected by specified Authority decisions may apply to the State Administrative Tribunal for review (s 11ZH). Appeals and reviews also exist for inspector orders (ss 19, 19A, 19B). Time limits are set (e.g. 14 days to seek review of Authority decisions under Part 2B, s 11ZPG; SAT applications under s 11ZH).

• Remedies in civil law. For conduct that prevents or hinders operation of retail market schemes (s 11ZOV), Schedule 2A provides private civil remedies , damages, injunctions, declaratory relief , exercisable through the Supreme Court (Sch 2A cl 2-4).

• Ministerial oversight. The Minister may direct Coordinator/Director (ss 4D, 10), and may require that directions be tabled and reported, providing an executive oversight and transparency mechanism (ss 4D(2), 10(2)).

These duties and rights produce a network of compliance obligations for licensees, procedural safeguards for affected persons, and a mix of administrative and judicial review routes.

The Act provides a graduated enforcement apparatus: administrative sanctions (notices, reprimands, monetary penalties imposed by the Authority), civil remedies (injunctions/damages under Sch 2A), statutory offences (criminal penalties), and remedial powers exercisable directly by inspectors, the Authority and the Minister.

Selected statutory penalties and enforcement powers (source sections):

• Licence offences: Operating without a licence in a supply area is a prescribed offence with a maximum fine of $100,000 and a daily penalty of $5,000 (s 11G(1)-(2)).

• Authority enforcement of licence conditions: If the Authority considers a licensee has contravened a licence it may serve a rectification notice and, if non‑compliance continues, issue a reprimand, order payment of a monetary penalty not exceeding $100,000, or cause rectification at the licensee’s expense (s 11ZB(1)-(2)). The Authority may recover penalties and costs as a debt to the Crown (s 11ZB(4)).

• Retail market scheme enforcement: For contraventions of scheme membership requirements the Authority may order payment of a daily monetary penalty not exceeding $10,000 (s 11ZOT(2)). For breach of retail market rules the Authority may impose a monetary penalty not exceeding $100,000 (s 11ZOU(3)(b)). Failure to comply with directions to amend a scheme attracts daily penalties up to $2,000 (s 11ZP(1)).

• Marketing code: The code may create offences against marketing agents punishable by up to $5,000 for individuals and $20,000 for corporations (s 11ZPQ).

• Inspectors’ enforcement and offences: Inspectors may issue orders (s 18; 18A-18C) and disconnect supplies (s 18(2)(b)). Offences for obstructing an inspector, failing to comply with inspection requirements, giving false or misleading information, or contravening inspector orders carry penalties of up to $50,000 for individuals and $250,000 for bodies corporate (s 20(1)-(4)).

• Confidentiality and trade secrets: A relevant official who improperly discloses trade secret information contrary to s 24AA faces a penalty of $10,000 and imprisonment for 12 months; s 24(1) imposes other confidentiality penalties ($10,000 and 12 months where s 21 applies; otherwise $5,000).

• Emergency powers: Contravening an emergency order or obstructing a person exercising powers under Schedule 3 carries penalties up to $5,000 for individuals and $50,000 for bodies corporate (Sch 3 cl 8).

Enforcement processes and remedies:

• Administrative process: For many breaches the Authority’s process is administrative , notice, opportunity to make submissions (s 11ZC; s 11ZOU(4); s 11ZOT(4)), followed by written orders and penalties. The Authority may recover penalties and rectification costs as debts (s 11ZB(4)).

• Criminal sanctions: Inspectors’ obstruction or non‑compliance offences attract criminal penalties (s 20). The marketing code may create criminal offences for marketing agents (s 11ZPQ) if so drafted.

• Civil remedies: For prohibited conduct that prevents or hinders retail market schemes (s 11ZOV), private parties can seek damages, injunctions and declaratory relief in the Supreme Court under Schedule 2A (Sch 2A cl 2-4). The Court may grant interim or final injunctions and order corrective action. Schedule 2A also sets a three‑year limitation for damages claims (Sch 2A cl 2(2)).

• Licence cancellation and asset vesting: The Governor may cancel a licence in specified circumstances (s 11ZE). Cancellation may trigger regulations that vest assets, rights and interests of the former licensee in a person (including the Minister as a corporation) to enable continued supply; regulations may provide for conferral of powers, assignment of liabilities and disposal of property (s 11ZE(4)). Following cancellation a former licensee has a duty to leave the system in a safe condition; the Minister can cause rectification and recover costs as a debt (s 11ZF).

• Immediate effect of operational orders: Inspectors’ orders (s 18, 18A-18C) and emergency orders in Schedule 3 can have immediate operational consequences, including disconnection. Appeals do not suspend orders unless otherwise provided (s 19(3) and s 19A(4)) , note limited suspension grounds where safety is concerned (s 19A(4)-(5)).

Taken together, enforcement is a mixture of regulatory sanctions (Authority‑imposed monetary penalties, rectification orders), criminal penalties (inspector obstruction etc) and civil remedies available to private parties, with powers to recover costs and vest or transfer assets in exceptional licence cancellation circumstances.

The Act situates itself inside a broader legal framework and provides cross‑references and conflict rules with other statutes and instruments; the Act both imports external standards and preserves external primacy in defined areas:

• National Gas Access (Western Australia) Law and other Commonwealth‑connected regimes. Licence terms cannot be inconsistent with the National Gas Access (Western Australia) Law (s 11M(5)); the grant, renewal or transfer of a licence does not affect the licensee’s obligations under other written laws (s 11V(1)-(2)). This places the Act as a state‑level licensing overlay that defers to the National Gas Access Law where inconsistent.

• Energy Operators (Powers) Act 1979. The Act extends specified provisions of the Energy Operators (Powers) Act 1979 to licence holders by operation of s 11ZO and Schedule 2. It also allows regulations to restrict, add or prohibit the operation of a prescribed provision in relation to licensees (s 11ZO(3)). Practically, this imports powers such as entry, repair, disconnection and related statutory authorities to the regulated licensee context (see Schedule 2 for the enumerated provisions).

• Gas Standards Act 1972 and Electricity Act 1945. The Director’s functions are vested under, among other laws, the Gas Standards Act 1972 and the Electricity Act 1945 (s 7). Licence compliance with technical standards prescribed under the Gas Standards Act is a licence condition (s 11Z). The Act therefore integrates those safety and technical standards into licence obligations.

• Land Administration Act 1997. Section 11ZK authorises the taking of interests or easements for a licence’s purposes under Part 9 of the Land Administration Act 1997, and ss 11ZL-11ZM provide for vesting and liability rules and require the licensee to pay costs of acquisition (ss 11ZK(3), 11ZL(1), 11ZM(1)-(2)).

• Personal Property Securities Act 2009 (Commonwealth). The Act explicitly declares that, if a licence is transferable, the licence is not personal property for the purposes of the Commonwealth PPSA (s 26A). This removes or limits certain security interests being registrable over licences in the PPSA scheme, affecting financiers and insolvency arrangements.

• Petroleum Pipelines Act 1969. Schedule 3 explicitly preserves safety provisions in the Petroleum Pipelines Act and pipeline licences giving precedence to safety provisions if inconsistent with Schedule 3 orders (s 24A(2)).

• Administrative law and review regimes. The Act prescribes review by the State Administrative Tribunal for specified Authority decisions (s 11ZH) and provides for court enforcement and remedy channels (e.g. Schedule 2A remedies in the Supreme Court). For inspector orders affecting network operators there are specified review and technical panel routes (ss 19A-19B).

• Regulatory hierarchy and overriding powers. Regulations made under s 26 may authorise a range of matters, including prescribing fees, fixing contract formats and providing for exemptions. Notably, regulations made under s 11ZPI on the Authority’s recommendation may override an approved retail market scheme (s 11ZPK), giving the executive a statutory path to impose regulatory overrides where the Authority recommends it.

• Interaction with corporations, competition and trade practice laws. The Act provides that exclusive licences authorised by regulation are specifically authorised even if they would otherwise contravene the Trade Practices Act 1974 and the Competition Code (s 11WQ). Also, in the case of corporate insolvency, the Governor may cancel licences if the licensee is a Chapter 5 body corporate within Corporations Act meaning (s 11ZE(1)(c)). The Act therefore contemplates interplay with national corporations and competition laws and creates narrow carve‑outs or override mechanisms in specified circumstances.

The Act therefore is both an integrating statute that imports safety and technical standards and a carve‑out statute in selected fields (exclusive licences, PPSA treatment), while also preserving court, tribunal and external regulatory primacy where explicitly stated.

The supplied compilation material records staged legislative development since enactment. Key changes and the instruments that made them (as set out in the Act’s compilation table and section annotations in the text) include:

• Original enactment and commencement: Energy Coordination Act 1994, assented 9 December 1994; main operative provisions commenced 1 January 1995 (compilation table).

• 1999 reforms establishing gas licensing structure: Energy Coordination Amendment Act 1999 (No. 20 of 1999) inserted Part 2A (licensing of gas supply), including ss 11A onward establishing supply areas, licence classifications and the licensing regime (see headings and notes "Heading inserted: No. 20 of 1999 s. 8" throughout Part 2A).

• 1999-2000 amendments connected to the Gas Corporation business disposal and petroleum pipeline matters: Gas Corporation (Business Disposal) Act 1999 (No. 58 of 1999) made consequential amendments affecting definitions (e.g. distribution system references) and Schedule 3 emergency interactions (compilation table entries and notes in text).

• 2003 package implementing contestable retail gas market architecture, marketing code and ombudsman: Energy Legislation Amendment Act 2003 (No. 53 of 2003) inserted wholesale Parts 2B (retail market schemes), 2C (marketing code) and 2D (gas industry ombudsman scheme), and related Divisions (see many “inserted: No. 53 of 2003” annotations, notably Part 2B and Parts 2C-2D headnotes).

• 2003-2004 transfer of licensing administration to the Economic Regulation Authority: amendments (No. 67 of 2003 and transitional provisions) placed licensing functions for gas in the Authority and inserted s 11AA (functions of the Authority) and consequential transitional schedules (compilation notes and s 11AA insertion).

• 2006 Machinery and public sector changes: the Coordinator of Energy office was added (Part 1A, inserted No. 28 of 2006 s 168) and associated provisions on delegation, staff and Ministerial directions were inserted (s 4-4E).

• 2007 safety and inspector reforms: Gas and Electricity Safety Legislation Amendment Act 2007 (No. 5 of 2007) inserted detailed inspector powers and orders (ss 18A-18C; amendments to Part 3) and strengthened Director functions (see notes "inserted: No. 5 of 2007").

• 2011 PPSA consequential amendment: the licence not being personal property for the purposes of the Commonwealth Personal Property Securities Act (s 26A) was inserted by the Personal Property Securities (Consequential Repeals and Amendments) Act 2011 (No. 42 of 2011).

• Further subsequent and technical amendments appear in the compilation table (including Statutes (Repeals and Misc Amendments) Acts, formatting and machinery of government changes, and more recent statutory entries up to and including a 2025 entry in the compilation table). The Act text annotates which sections were inserted or amended by which numbered Acts and includes the dates or references for commencement where applicable (see compilation table and marginal notes such as "[Section 11AA inserted: No. 67 of 2003 Sch. 2 cl. 13]" and similar throughout).

• Uncommenced provisions: the compilation table records at least one uncommenced item in the late entries (Petroleum Legislation Amendment Act 2024 s 434(2) is listed as "To be proclaimed"). The body of the Act contains transitional schedules and saving provisions tied to staged commencements (e.g. transitional machinery for Part 2B in the explanatory notes reproduced in the compilation text).

For legal practice and compliance planning, those annotations in the Act text and compilation table identify the legislative provenance for each Part and the dates on which particular regimes (licensing, retail market schemes, inspector regimes, Coordinator role) were introduced or modified. The Act’s own text flags which Parts and Divisions were inserted by which amending Acts, allowing a reader to trace the legislative history within the consolidated text.

The Act text supplied does not record or cite any court decisions or litigation history. It prescribes multiple statutory review and dispute resolution pathways and civil remedies, which are the mechanisms by which disputes are to be litigated or administratively reviewed. The principal statutory routes are:

• State Administrative Tribunal (SAT) review: specified Authority decisions and related actions are reviewable by SAT. Section 11ZH provides review rights to a person adversely affected by particular Authority decisions (refusal to grant/renew/transfer licences, refusal to approve standard form contracts or amendments, licence term/period disputes, directions to amend contracts, and certain other actions). Section 11ZH also prescribes Tribunal constitution (3 members with specified expertise) and conflict‑of‑interest obligations for Tribunal members.

• Appeals and technical review: inspector orders against network operators may be reviewed by the Director (s 19A) with further review to SAT on a question of law or to a technical review panel on other grounds (s 19B). The technical review panel is an administrative appeal body created under the regulations; the Act permits suspension of decisions pending review subject to safety exceptions (s 19B(4)-(5)).

• Judicial remedies and enforcement: Schedule 2A establishes remedies in the Supreme Court for contraventions of s 11ZOV (conduct preventing or hindering retail market schemes), including damages (Sch 2A cl 2), injunctions and declaratory relief (Sch 2A cl 3-4). The Supreme Court is specified as the Court for these remedies (Sch 2A cl 1).

• Recovery of penalties and debts: the Act directs that monetary penalties and rectification costs imposed by the Authority may be recovered in a court of competent jurisdiction as debts due to the Crown (e.g. s 11ZB(4); s 11ZOT(5); s 11ZOU(5); s 11ZPB(3)). These are ordinary civil debt recoveries in court rather than criminal prosecutions.

Because the source text contains no case law citations or reported litigation, any actual litigation trends or judicial interpretations of these provisions are not in the supplied material. For practitioners seeking judicial precedent or interpretative guidance, the Act indicates the statutory forums and mechanisms available (SAT, technical review panels, and Supreme Court injunctive/damages jurisdiction), but the Act text itself does not supply case‑law history.

The Act contains multiple provisions that can produce unexpected operational, compliance or commercial consequences if not actively managed. Below are concrete “watch items” with statutory citations and the mechanism by which they bite:

• Standard form contract first, licence second (ss 11WD-11WE). For trading licences, a draft standard form contract must accompany an application and the Authority must approve the standard form contract before the licence is granted (s 11WE). Practically, failure to have an Authority‑approved standard form can block grant, renewal or transfer of a trading licence.

• Membership and ombudsman as licence prerequisite (ss 11ZQF-11ZQH). Evidence of membership of an approved gas industry ombudsman scheme must be produced with licence applications and renewals (s 11ZQF). The Authority cannot grant, renew, or approve transfer of a licence unless the licensee will be a member of an approved scheme (s 11ZQG). This requires contemporaneous consumer dispute resolution arrangements as a condition of market entry.

• Confidentiality and trade secret traps (ss 21, 22, 24AA-24AB). Persons providing information to the Coordinator may mark items as trade secrets (s 22); however, trade secret protection for officials is not absolute. Section 24AA tightly restricts disclosure (including criminal penalty and imprisonment) unless aggregated disclosure conditions are met (s 24AA(1)-(2)) or a public‑interest determination and review process under s 24AB-24AC is completed. Missteps in labelling and in official disclosure can therefore lead to criminal liability for officials or administrative complexity for parties.

• Inspectors’ orders immediate operational effect; limited suspension on review (ss 18, 19, 19A). Inspectors’ prohibition and disconnection orders can be given with immediate effect (s 18). Appeals to the Director are available (s 19), and network operators may obtain review (s 19A), but an application for review stays operation only where the Director determines it does not need to run for safety reasons (s 19A(4)-(5)). This means safety grounds can preclude suspension of orders, with material commercial consequences.

• Authority’s administrative penalties and recovery as debt (s 11ZB; s 11ZOU). The Authority can impose significant monetary penalties without criminal prosecution and recover them as a debt in court (s 11ZB(2)(b), (4)). Administrative procedures require notice and an opportunity to be heard (s 11ZC), but licensees should not assume criminal‑type procedural protections apply.

• Licence cancellation and asset vesting (s 11ZE). The Governor may cancel licences where a licensee is in default, fails to pay licence fees, is a specified form of insolvent corporate (s 11ZE(1)(c)), or meets certain criminal conviction thresholds. Regulations may then vest assets, rights and interests in a person to enable continued supply and provide for disposition and assignment of liabilities (s 11ZE(4)). Cancellation therefore can lead to forced transfers and regulatory intervention in asset ownership.

• Easement and land powers but licensee pays (ss 11ZK-11ZM). The Act permits taking interests or easements under Part 9 of the Land Administration Act for licence purposes and vests such interests in the licensee (ss 11ZK, 11ZL). Costs are payable by the licensee and recoverable as a debt (s 11ZK(3)). Licensees must therefore budget for land acquisition costs and potential compensation proceedings (s 11ZM).

• Authority can override retail market schemes by regulation (ss 11ZPI, 11ZPK). If the Authority recommends regulations, the Governor may make regulations that prohibit continued operation of an approved retail market scheme and those regulations have effect despite the scheme (s 11ZPK). Regulatory override is a concrete risk for scheme participants.

• Licence fees may include recovery of retail competition implementation costs (s 11Q(2a)). The licence fee regulations can be framed to recover historical retail competition implementation costs. Licensees should account for this as a potential regulatory levy.

• Emergency powers broad and protective of State actors (Sch 3). Schedule 3 grants the Minister and authorised persons wide emergency powers (Sch 3 cl 3-4), including entry without warrant (cl 7) and immunity for acts done in good faith under the Schedule (cl 6). Emergency orders can be published by Gazette and have immediate national‑security or public‑safety consequences for suppliers.

• Licence not personal property under PPSA (s 26A). Where licences are transferable, s 26A declares them not to be personal property for PPSA purposes in specified terms. That affects financiers’ ability to take registered security interests in licences under the PPSA framework. Lenders and acquirers need to structure security accordingly.

These statutory mechanisms produce concentrated decision points and compliance tasks. Practitioners should map which actors are affected by each provision and prepare operational and contractual steps (e.g. standard form contract approval timing, ombudsman membership, asset management and audit scheduling, trade‑secret handling, and inspector response procedures).

This section synthesises mandatory steps and practical compliance actions drawn from the Act’s provisions. The checklist below is grounded in the statutory duties and timeframes in the text.

1. Licensing and application checklist

• Confirm licence classification and scope: determine whether activities require a distribution licence or trading licence (s 11D) and map to supply area(s) (s 11E).
• Obtain or confirm supply area status: check whether the area is constituted as a supply area by Governor’s order (s 11A). If a proposed order affects existing operations, the Minister must consult materially affected licensees (s 11C).
• Prepare application in Authority form and pay application fee (s 11L(1)). For trading licences attach draft standard form contract as required (s 11WD).
• Provide full information requested by the Authority on financial and technical resources, pricing methods (for trading licences), supply methods/standards and any other requested materials (s 11L(2)-(3), s 11S(1)).
• Anticipate the Authority’s 90‑day decision target and plan contingency for follow‑up information requests (s 11S(2)).

2. Contract and market compliance

• Obtain Authority approval of the standard form contract before relying on it: the Authority must approve the standard form contract for a trading licence applicant and may not grant or renew a trading licence unless approval has been given (ss 11WE-11WF).
• If supplying small use customers without a contract, expect deemed contract rules to apply; implement procedures for tracking default supplier determinations and registers (ss 11WK-11WL).
• Join and participate in approved retail market schemes where required (ss 11ZOC, 11ZOR). Ensure the formal entity for the scheme meets governance, reporting and funding obligations (s 11ZOF(1)(b); s 11ZPA).

3. Consumer protections and dispute resolution

• Ensure membership of an approved gas industry ombudsman scheme is in place or will be in place at grant/renewal/transfer (ss 11ZQF-11ZQG). Maintain membership and be bound by ombudsman decisions as a licence condition (s 11ZQH).
• Comply with the marketing code of conduct where applicable; monitor changes and participate in committee consultations (Part 2C; ss 11ZPU-11ZPV).

4. Asset management, performance audits and technical standards

• Implement an asset management system meeting licence requirements and notify the Authority of system details and material changes (s 11Y(1)).
• Arrange independent expert asset management effectiveness reports at least every 24 months (s 11Y(1)(c)).
• Schedule and submit performance audits by independent experts acceptable to the Authority at least every 24 months (s 11ZA(1)). Track the Authority’s reporting obligations to the Minister (s 11ZA(3)).
• Ensure supply and operational compliance with technical standards prescribed under the Gas Standards Act 1972 (s 11Z).

5. Inspection and safety compliance

• Maintain records and documentation so that inspectors may be provided required access and information (s 14(d)). Implement an inspector‑response protocol, designate staff authorised to liaise, and ensure staff know to request production of the inspector’s certificate (s 13).
• For identified safety defects, prepare capacity to comply with inspector orders promptly; understand that inspector orders may be immediate and that appeals may not suspend operation if safety is at risk (ss 18, 19, 19A(4)-(5)).
• Prepare emergency and supply system management plans if regulations require (s 24C).

6. Information provision and confidentiality

• Designate and label any trade secret information when responding to Coordinator information notices (s 22); understand that labelling does not exempt disclosure but triggers s 24AA protections and public‑interest procedures (ss 24AA-24AC).
• Establish internal controls so the Coordinator’s information requests (s 21) are complied with in writing within the specified timeframe (s 21(2)-(3)). Note penalties for non‑compliance and for false or misleading information (s 23).

7. Financial and cost recovery planning

• Budget for licence fees and annual anniversary payments; note that regulations may prescribe different fees by classification and that licence fees may recover retail competition implementation costs (s 11Q(1)-(2a)).
• If a distribution licence holder, track potential recoverable cost categories under regulations (s 11WR) , for example costs of IT systems facilitating retail competition , and understand how cost recovery allocations between distribution and trading licence holders may be authorised by regulation.

8. Land and easement planning

• For network expansion and distribution system works, assess the need to acquire interests or easements and budget for these under Part 9 Land Administration Act procedures invoked by s 11ZK. Understand that acquisition costs are payable by the licensee and that compensation and liability proceedings will be taken against the licensee (ss 11ZK(3), 11ZM).

9. Governance, reporting and Authority engagement

• Implement processes to: notify the Authority of material changes (s 11Y); provide plans, returns and reports as directed by retail market schemes and the Authority (s 11ZPA); participate in required public consultation where regulations mandate it before licence amendments (s 11VA, 11WA).
• Maintain a register of default supplier assignments and delivery point data where retail market rules require (s 11WL).

10. Dispute, review and enforcement preparedness

• Prepare to make or respond to SAT review applications within statutory timeframes (e.g. 14 days for certain decisions, s 11ZPG; see s 11ZH). For inspector decisions reviewable to a technical review panel, ensure procedures for evidence and costs are in place (ss 19B(2)-(10)).
• Track Authority notices and rectify contraventions within specified periods to avoid escalation to monetary penalty or rectification at licensee expense (s 11ZB).

Practical steps for operators and advisers

• Pre‑application due diligence: legal, technical and financial audits; confirm ombudsman membership arrangements and standard form contract readiness.
• Compliance system: appoint a compliance officer responsible for asset management reporting, performance audits, inspector interactions and information responses to the Coordinator.
• Records and confidentiality: implement recordkeeping and trade‑secret labelling procedures tied to s 21/22 and s 24AA/24AB review timelines.
• Emergency and safety response: maintain emergency plans where required by regulation, and train staff on inspector and emergency order processes (s 24C; Sch 3).
• Commercial contracting and financing: advise financiers of s 26A PPSA treatment and structure security over other assets where licences are excluded from PPSA treatment.

These steps are direct corollaries of the Statute’s provisions and timeframes (see ss 11L, 11Q, 11S(2), 11WD, 11WE, 11Y, 11ZA, 21-24AA, 18-19A, 11ZQG). Compliance is an integrated mix of pre‑grant approvals, ongoing technical and consumer obligations, and a readiness to respond to rapid safety and inspection interventions.