Gas Industry (Penalty Regime) Regulations 2022 (Victoria)

These Regulations (Gas Industry (Penalty Regime) Regulations 2022) implement a manifestly mechanical task: they identify which provisions of the Gas Industry Act 2001 and associated codes and statutory licence conditions are to be treated as civil penalty requirements under the Essential Services Commission Act 2001, and they set the ceiling penalty amounts (expressed in penalty units) that apply to contraventions of those prescribed requirements.

Mechanically the instrument does three things. First, regulation 5 prescribes certain provisions of the Gas Industry Act 2001 as civil penalty requirements by listing them in Schedule 1. Second, Schedule 2 organises a broader set of obligations into two tiers (Table 1: tier 1; Table 2: tier 2) and cross-references them to particular sections of the Act, statutory licence conditions, orders, and specified clauses of the Energy Retail Code of Practice and the Gas Distribution Code of Practice. Third, regulations 6 and 7 set the maximum prescribed civil penalty amounts (in penalty units) for contraventions of the tiered requirements for the statutory purposes of section 54E(c), (d), (g) and (i) of the Essential Services Commission Act 2001: tier 1 contraventions may attract an amount not exceeding 60,000 penalty units (reg 6); tier 2 contraventions may attract an amount not exceeding 8,000 penalty units (reg 7).

The Regulations also supply statutory metadata: they are made under s 236 of the Gas Industry Act 2001 (reg 2), commenced on 19 July 2022 (reg 3), and include definition clauses (reg 4) that tie the codes named in the schedules back to Codes of Practice made under s 47(1) of the Essential Services Commission Act 2001. The endnotes record that the instrument will sunset 10 years after making (19 July 2032) under the Subordinate Legislation Act 1994 (Endnotes 1), that the Regulations use penalty units per the Sentencing Act 1991 and monetary conversion rules under the Monetary Units Act 2004 (Endnotes 3), and that the instrument has been amended by S.R. No. 84/2023 and S.R. No. 105/2024 (Endnotes 2).

Version No. 003

Gas Industry (Penalty Regime) Regulations 2022

S.R. No. 56/2022

Version incorporating amendments as at
8 October 2024

TABLE OF PROVISIONS

Regulation Page

1 Objectives 1

2 Authorising provision 1

3 Commencement 1

4 Definitions 1

5 Prescribed civil penalty requirements 2

6 Prescribed civil penalty amounts—tier 1 civil penalty requirements 3

7 Prescribed civil penalty amounts—tier 2 civil penalty requirements 3

Schedule 1—Prescribed civil penalty requirements—provisions of the Act 4

Schedule 2—Prescribed civil penalty amounts 5

═════════════

Endnotes 18

1 General information 18

2 Table of Amendments 20

3 Explanatory details 21

Version No. 003

Gas Industry (Penalty Regime) Regulations 2022

S.R. No. 56/2022

Version incorporating amendments as at
8 October 2024

1 Objectives

The objectives of these Regulations are—

(a) to prescribe provisions as civil penalty requirements for the purposes of the Essential Services Commission Act 2001; and

(b) to prescribe amounts for contraventions of civil penalty requirements.

2 Authorising provision

These Regulations are made under section 236 of the Gas Industry Act 2001.

3 Commencement

These Regulations come into operation on 19 July 2022.

4 Definitions

In these Regulations⎯

civil penalty requirement has the same meaning as in section 3 of the Essential Services Commission Act 2001;

Energy Retail Code of Practice means the Code of Practice made under section 47(1) of the Essential Services Commission Act 2001 and entitled "Energy Retail Code of Practice";

Reg. 4 def. of Gas Distribution System Code of Practice inserted by S.R. No. 84/2023 reg. 3, amended as Gas Distribution Code of Practice by S.R. No. 105/2024 reg. 3.

Gas Distribution Code of Practice means the Code of Practice made under section 47(1) of the Essential Services Commission Act 2001 and entitled "Gas Distribution Code of Practice";

the Act means the Gas Industry Act 2001;

tier 1 civil penalty requirement means a civil penalty requirement specified in an item of Table 1 in Schedule 2;

tier 2 civil penalty requirement means a civil penalty requirement specified in an item of a Table 2 in Schedule 2.

5 Prescribed civil penalty requirements

A provision of the Act specified in Schedule 1 is prescribed as a civil penalty requirement for the purposes of the Essential Services Commission Act 2001.

Notes

1 The Act may also specify a provision of the Act as a civil penalty requirement for the purposes of the Essential Services Commission Act 2001.

2 If a provision of the Act that was specified as a civil penalty requirement in the Act ceases to be specified as a civil penalty requirement in the Act, the provision is not a civil penalty requirement even if it is specified in Schedule 2, unless it is specified in Schedule 1.

6 Prescribed civil penalty amounts—tier 1 civil penalty requirements

For the purposes of section 54E(c), (d), (g) and (i) of the Essential Services Commission Act 2001, the prescribed amount for a contravention of a tier 1 civil penalty requirement is an amount not exceeding 60 000 penalty units.

Notes

1 The civil penalty amount for a contravention of a civil penalty requirement that is not a tier 1 civil penalty requirement or a tier 2 civil penalty requirement is the amount specified in the Act or in the Essential Services Commission Act 2001.

2 For persons other than licensees, the civil penalty amount for a contravention of a civil penalty requirement is the amount specified in the Act or in the Essential Services Commission Act 2001.

7 Prescribed civil penalty amounts—tier 2 civil penalty requirements

For the purposes of section 54E(c), (d), (g) and (i) of the Essential Services Commission Act 2001, the prescribed amount for a contravention of a tier 2 civil penalty requirement is an amount not exceeding 8000 penalty units.

Sch. 1 substituted by S.R. No. 105/2024 reg. 4

Schedule 1—Prescribed civil penalty requirements—provisions of the Act

Regulation 5

Column 1<br>Item No.	Column 2<br>Provision
1.	Section 42(3A).
2.	Section 48DG(1).
3.	Section 48DI(1).
4.	Section 48DI(2).
5.	Section 48DI(3).
6.	Section 48DI(4).
7.	Section 48DJ(1).
8.	Section 48DJ(2).
9.	Section 48DK(1).
10.	Section 48DK(2).
11.	Section 48DL(1).
12.	Section 48DL(2).
13.	Section 48DL(3).
14.	Section 48DL(4).
15.	Section 48DL(5).
16.	Section 48DM(1).
17.	Section 48DM(2).
18.	Section 48DM(3).
19.	Section 48GA(3).
20.	Section 141(4).
21.	Section 148(3).
22.	Section 148(4).

Sch. 2 amended by S.R. No. 84/2023 regs 4, 5, substituted by S.R. No. 105/2024 reg. 5.

Schedule 2—Prescribed civil penalty amounts

Regulations 6 and 7

Table 1—Tier 1 civil penalty requirements

Column 1<br>Item No.	Column 2<br>Provision
	Gas Industry Act 2001
1.	Section 42(3A).
2.	Section 48DG(1).
3.	Section 48DI(1).
4.	Section 48DI(2).
5.	Section 48DI(3).
6.	Section 48DI(4).
7.	Section 48DJ(1).
8.	Section 48DJ(2).
9.	Section 48DK(1).
10.	Section 48DK(2).
11.	Section 48DL(1).
12.	Section 48DL(2).
13.	Section 48DL(3).
14.	Section 48DL(4).
15.	Section 48DL(5).
16.	Section 48DM(1).
17.	Section 48DM(2).
18.	Section 48DM(3).
19.	Section 48GA(3).
	Statutory licence conditions under the Gas Industry Act 2001
20.	Section 33(1).
21.	Section 36(1).
22.	Section 42(1).
23.	Section 42C(1).
24.	Section 48A(1).
25.	Section 48DA(2).
26.	Section 48DB(1).
27.	Section 48G(1).
28.	Section 48G(3).
	Orders made under the Gas Industry Act 2001
29.	Section 20.
30.	Section 21(1).
31	Section 48C(1).
32.	Section 48D(1).
	Energy Retail Code of Practice
33.	Clause 26(4).
34.	Clause 26(5).
35.	Clause 27(1).
36.	Clause 29(5).
37.	Clause 30(2).
38.	Clause 85(8).
39.	Clause 103(1).
40.	Clause 104(1).
41.	Clause 113(1).
42.	Clause 120(1).
43.	Clause 125(1).
44.	Clause 125(2).
45.	Clause 129(3).
46.	Clause 130(2).
47.	Clause 130(5).
48.	Clause 130(6).
49.	Clause 131(2).
50.	Clause 131(3).
51.	Clause 132(1).
52.	Clause 135(1).
53.	Clause 138(1).
54.	Clause 138(2).
55.	Clause 138(3).
56.	Clause 139(1).
57.	Clause 139(2).
58.	Clause 139(5).
59.	Clause 141(1).
60.	Clause 143(1).
61.	Clause 144(1).
62.	Clause 144(2).
63.	Clause 144(3).
64.	Clause 145(1).
65.	Clause 146(2).
66.	Clause 146(3).
67.	Clause 146(4).
68.	Clause 146(5).
69.	Clause 146(6).
70.	Clause 146(7).
71.	Clause 146(8).
72.	Clause 149(1).
73.	Clause 150(1).
74.	Clause 150(4).
75.	Clause 150(6).
76.	Clause 151(1).
77.	Clause 152(1).
78.	Clause 153(1).
79.	Clause 154(1).
80.	Clause 154(2).
81.	Clause 155(1).
82.	Clause 157(1).
83.	Clause 158(1).
84.	Clause 159(1).
85.	Clause 160(1).
86.	Clause 160(2).
87.	Clause 164(1).
88.	Clause 164(2).
89.	Clause 165(1).
90.	Clause 165(2).
91.	Clause 167(1).
92.	Clause 182(4).
93.	Clause 191(1).
94.	Clause 192(1).
95.	Clause 193(1).
	Gas Distribution Code of Practice
96.	Clause 3.1.
97.	Clause 3.3.
98.	Clause 3.4.1.
99.	Clause 3.4.9.
100.	Clause 3.5.1.
101.	Clause 3.5.2.
102.	Clause 3.5.4.
103.	Clause 3.7.1.
104.	Clause 3.7.2.
105.	Clause 3.7.3.
106.	Clause 3.7.4.
107.	Clause 3.7.5.
108.	Clause 3.7.6(b).
109.	Clause 3.7.6(c).
110.	Clause 3.7.6(d).
111.	Clause 3.7.6(e).
112.	Clause 3.7.6(f).
113.	Clause 3.7.7.
114.	Clause 3.7.8.
115.	Clause 3.7.9.
116.	Clause 3.7.10.
117.	Clause 4.1.1.
118.	Clause 4.1.3.
119.	Clause 4.1.4.
120.	Clause 4.2.1.
121.	Clause 4.2.3.
122.	Clause 4.2.5(a).
123.	Clause 4.2.5(c).
124.	Clause 4.4.1.
125.	Clause 5.1(a).
126.	Clause 5.1(b).
127.	Clause 5.1(c).
128.	Clause 5.1(d).
129.	Clause 5.1(e).
130.	Clause 5.1(f).
131.	Clause 5.2.
132.	Clause 5.3.
133.	Clause 5.4.
134.	Clause 5.5.
135.	Clause 5.6.1.
136.	Clause 5.6.2.
137.	Clause 5.7.1.
138.	Clause 5.7.2.
139.	Clause 5.7.3.
140.	Clause 6.1.1(a).
141.	Clause 6.1.1(b).
142.	Clause 6.1.1(c).
143.	Clause 6.1.1(d).
144.	Clause 6.1.1(e).
145.	Clause 6.1.2.
146.	Clause 6.1.3.
147.	Clause 6.1.4.
148.	Clause 6.2.1.
149.	Clause 6.2.2.
150.	Clause 6.3.1.
151.	Clause 6.3.3.
152.	Clause 7.3.
153.	Clause 7.4.
154.	Clause 7.6.1.
155.	Clause 7.7.1.
156.	Clause 7.7.2.
157.	Clause 7.8.1.
158.	Clause 7.8.2.
159.	Clause 7.8.3.
160.	Clause 7.11(e).
161.	Clause 7.13.
162.	Clause 9.1.1.
163.	Clause 9.1.3.
164.	Clause 9.2.
165.	Clause 12.1.1.
166.	Clause 12.1.2.
167.	Clause 13.2.1.
168.	Clause 13.3.

Table 2—Tier 2 civil penalty requirements

Column 1<br>Item No.	Column 2<br>Provision
	Statutory licence conditions under the Gas Industry Act 2001
1.	Section 42A.
2.	Section 42D(1).
3.	Section 43A(1).
4.	Section 48C(1AA).
	Energy Retail Code of Practice
5.	Clause 8(1).
6.	Clause 8(2).
7.	Clause 12(1).
8.	Clause 13(1).
9.	Clause 13(2).
10.	Clause 13(3).
11.	Clause 13(4).
12.	Clause 14(1).
13.	Clause 16(1).
14.	Clause 16(2).
15.	Clause 16(3).
16.	Clause 24(1).
17.	Clause 26(2)(b).
18.	Clause 26(3)(a).
19.	Clause 26(3)(b).
20.	Clause 30(1).
21.	Clause 31(1).
22.	Clause 33(1).
23.	Clause 38(1).
24.	Clause 38(2).
25.	Clause 38(3).
26.	Clause 38(6).
27.	Clause 39(1).
28.	Clause 39(2).
29.	Clause 39(3).
30.	Clause 39(4).
31.	Clause 39(5).
32.	Clause 40(1).
33.	Clause 40(3).
34.	Clause 40(4).
35.	Clause 40(5).
36.	Clause 40(6).
37.	Clause 40(7).
38.	Clause 40(8).
39.	Clause 40(9).
40.	Clause 40(10).
41.	Clause 40(11).
42.	Clause 40(12).
43.	Clause 41(1).
44.	Clause 41(2).
45.	Clause 44(1).
46.	Clause 45(1).
47.	Clause 46(3).
48.	Clause 47(2).
49.	Clause 48(1).
50.	Clause 48(2).
51.	Clause 50(1).
52.	Clause 50(2).
53.	Clause 51(2).
54.	Clause 51(5).
55.	Clause 52(1).
56.	Clause 53(1).
57.	Clause 54(1).
58.	Clause 54(3).
59.	Clause 57(1)(b).
60.	Clause 57(2).
61.	Clause 59(1).
62.	Clause 59(4).
63.	Clause 59(6).
64.	Clause 59(7).
65.	Clause 59(8).
66.	Clause 59(10).
67.	Clause 59(11).
68.	Clause 59(12).
69.	Clause 59(13).
70.	Clause 59(14).
71.	Clause 60(1).
72.	Clause 62(1).
73.	Clause 63(1).
74.	Clause 65(1).
75.	Clause 66(1).
76.	Clause 69(1).
77.	Clause 69(2).
78.	Clause 69(3).
79.	Clause 69(5)(a).
80.	Clause 69(7)(b).
81.	Clause 69(8).
82.	Clause 70(2)(a).
83.	Clause 70(2)(b).
84.	Clause 70(2)(c).
85.	Clause 70(2)(d).
86.	Clause 70(3).
87.	Clause 71(1).
88.	Clause 71(2).
89.	Clause 71(3).
90.	Clause 72(1).
91.	Clause 72(3).
92.	Clause 72(4).
93.	Clause 72(5).
94.	Clause 75(2).
95.	Clause 75(3).
96.	Clause 75(4).
97.	Clause 76(1).
98.	Clause 77(1)(b).
99.	Clause 81(1).
100.	Clause 82(1).
101.	Clause 84(1).
102.	Clause 85(1).
103.	Clause 85(2).
104.	Clause 85(3).
105.	Clause 85(4).
106.	Clause 85(5).
107.	Clause 85(6).
108.	Clause 86(3).
109.	Clause 87(1).
110.	Clause 88(1).
111.	Clause 89(1).
112.	Clause 89(2).
113.	Clause 89(3).
114.	Clause 90(1).
115.	Clause 90(2).
116.	Clause 92(2).
117.	Clause 92(3).
118.	Clause 92(4).
119.	Clause 92(5).
120.	Clause 93(1).
121.	Clause 94(2).
122.	Clause 94(4).
123.	Clause 95(1).
124.	Clause 96(1).
125.	Clause 97(5).
126.	Clause 97(6).
127.	Clause 98(1).
128.	Clause 98(2).
129.	Clause 98(3).
130.	Clause 99(1).
131.	Clause 100(2).
132.	Clause 102(1).
133.	Clause 102(2).
134.	Clause 106(1).
135.	Clause 108(1).
136.	Clause 108(3).
137.	Clause 109(1).
138.	Clause 110(1).
139.	Clause 110(2).
140.	Clause 110(3).
141.	Clause 110(4).
142.	Clause 112(1).
143.	Clause 112(2).
144.	Clause 114(1).
145.	Clause 115(1).
146.	Clause 119(1).
147.	Clause 119(2).
148.	Clause 119(3).
149.	Clause 119(4).
150.	Clause 119(5).
151.	Clause 176(2).
152.	Clause 176(4).
	Gas Distribution Code of Practice
153.	Clause 3.2.2.
154.	Clause 3.4.6.
155.	Clause 3.4.7.
156.	Clause 4.1.5.
157.	Clause 4.3.1.
158.	Clause 6.4.1.
159.	Clause 6.4.2.
160.	Clause 6.4.3.
161.	Clause 6.4.4.
162.	Clause 6.4.5.
163.	Clause 9.1.4.
164.	Clause 9.3.2.
165.	Clause 10.1.1.
166.	Clause 10.1.2.
167.	Clause 10.1.3.
168.	Clause 10.1.4.
169.	Clause 12.1.3.
170.	Clause 12.1.4.

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Endnotes

1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.

The Gas Industry (Penalty Regime) Regulations 2022, S.R. No. 56/2022 were made on 19 July 2022 by the Governor in Council under section 236 of the Gas Industry Act 2001, No. 31/2001 and came into operation on 19 July 2022: regulation 3.

The Gas Industry (Penalty Regime) Regulations 2022 will sunset 10 years after the day of making on 19 July 2032 (see section 5 of the Subordinate Legislation Act 1994).

INTERPRETATION OF LEGISLATION ACT 1984 (ILA)

Style changes

Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.

References to ILA s. 39B

Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided regulation, rule or clause of a Schedule is amended by the insertion of one or more subregulations, subrules or subclauses the original regulation, rule or clause becomes subregulation, subrule or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original regulation, rule or clause.

Interpretation

As from 1 January 2001, amendments to section 36 of the ILA have the following effects:

• Headings

All headings included in a Statutory Rule which is made on or after
1 January 2001 form part of that Statutory Rule. Any heading inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.
This includes headings to Parts, Divisions or Subdivisions in a Schedule; Orders; Parts into which an Order is divided; clauses; regulations; rules; items; tables; columns; examples; diagrams; notes or forms.
See section 36(1A)(2A)(2B).

• Examples, diagrams or notes

All examples, diagrams or notes included in a Statutory Rule which is made on or after 1 January 2001 form part of that Statutory Rule. Any examples, diagrams or notes inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, form part of that Statutory Rule. See section 36(3A).

• Punctuation

All punctuation included in a Statutory Rule which is made on or after
1 January 2001 forms part of that Statutory Rule. Any punctuation inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.
See section 36(3B).

• Provision numbers

All provision numbers included in a Statutory Rule form part of that Statutory Rule, whether inserted in the Statutory Rule before, on or after
1 January 2001. Provision numbers include regulation numbers, rule numbers, subregulation numbers, subrule numbers, paragraphs and subparagraphs. See section 36(3C).

• Location of "legislative items"

A "legislative item" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of a Statutory Rule is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.

• Other material

Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of a Statutory Rule. See section 36(3)(3D)(3E).

2 Table of Amendments

This publication incorporates amendments made to the Gas Industry (Penalty Regime) Regulations 2022 by statutory rules, subordinate instruments and Acts.

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Gas Industry (Penalty Regime) Amendment Regulations 2023, S.R. No. 84/2023

Date of Making:	15.8.23
Date of Commencement:	15.8.23

Gas Industry (Penalty Regime) Amendment Regulations 2024, S.R. No. 105/2024

Date of Making:	8.10.24
Date of Commencement:	8.10.24

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

3 Explanatory details

Penalty Units

These Regulations provide for penalties by reference to penalty units within the meaning of section 110 of the Sentencing Act 1991. The amount of the penalty is to be calculated, in accordance with section 7 of the Monetary Units Act 2004, by multiplying the number of penalty units applicable by the value of a penalty unit.

The value of a penalty unit for the financial year commencing 1 July 2024 is $197.59. The amount of the calculated penalty may be rounded to the nearest dollar.

The value of a penalty unit for future financial years is to be fixed by the Treasurer under section 5 of the Monetary Units Act 2004. The value of a penalty unit for a financial year must be published in the Government Gazette and a Victorian newspaper before 1 June in the preceding financial year.

1 Gas Industry (Penalty Regime) Regulations 2022

Version No. 003

Gas Industry (Penalty Regime) Regulations 2022

S.R. No. 56/2022

Version incorporating amendments as at
8 October 2024

TABLE OF PROVISIONS

Regulation Page

1 Objectives 1

2 Authorising provision 1

3 Commencement 1

4 Definitions 1

5 Prescribed civil penalty requirements 2

6 Prescribed civil penalty amounts—tier 1 civil penalty requirements 3

7 Prescribed civil penalty amounts—tier 2 civil penalty requirements 3

Schedule 1—Prescribed civil penalty requirements—provisions of the Act 4

Schedule 2—Prescribed civil penalty amounts 5

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Endnotes 18

1 General information 18

2 Table of Amendments 20

3 Explanatory details 21

Version No. 003

Gas Industry (Penalty Regime) Regulations 2022

S.R. No. 56/2022

Version incorporating amendments as at
8 October 2024

1 Objectives

The objectives of these Regulations are—

(a) to prescribe provisions as civil penalty requirements for the purposes of the Essential Services Commission Act 2001; and

(b) to prescribe amounts for contraventions of civil penalty requirements.

2 Authorising provision

These Regulations are made under section 236 of the Gas Industry Act 2001.

3 Commencement

These Regulations come into operation on 19 July 2022.

4 Definitions

In these Regulations⎯

civil penalty requirement has the same meaning as in section 3 of the Essential Services Commission Act 2001;

Energy Retail Code of Practice means the Code of Practice made under section 47(1) of the Essential Services Commission Act 2001 and entitled "Energy Retail Code of Practice";

The Regulations rely on and operationalise three legal concepts: (1) “civil penalty requirement”, (2) tiered ceiling amounts by reference to penalty units, and (3) the integration of statutory licence conditions and Code-of-Practice clauses into the civil penalties architecture of the Essential Services Commission Act 2001.

Civil penalty requirement: the instrument uses the defined term “civil penalty requirement” (reg 4). Regulation 5 expressly prescribes provisions of the Gas Industry Act 2001 listed in Schedule 1 as civil penalty requirements for the purposes of the Essential Services Commission Act 2001. The note to regulation 5 makes an important interaction point explicit: the Act itself may also specify civil penalty requirements; if an Act provision ceases to be specified as a civil penalty requirement in the Act, it is not a civil penalty requirement despite being listed in Schedule 2, unless it appears in Schedule 1. That is, Schedule 1 contains Act provisions that the Regulations themselves declare to be civil penalty requirements; Schedule 2 lists provisions and Code clauses, divided into tier 1 and tier 2, to which the prescribed penalty ceilings apply (regulations 6-7).

Tiering and prescribed amounts: the Regulations use two tiers. Table 1 in Schedule 2 lists tier 1 civil penalty requirements; Table 2 lists tier 2 civil penalty requirements. Regulation 6 prescribes that, for the purposes of s 54E(c),(d),(g),(i) of the Essential Services Commission Act 2001, the prescribed amount for a contravention of a tier 1 civil penalty requirement is an amount not exceeding 60,000 penalty units. Regulation 7 prescribes that the prescribed amount for a contravention of a tier 2 civil penalty requirement is an amount not exceeding 8,000 penalty units. The Regulations link these ceilings to specific subsections of s 54E of the ESC Act; they do not themselves set discrete dollar amounts, but rely on the Sentencing Act and Monetary Units Act mechanisms to convert penalty units to dollars.

Codes and licence conditions as enforceable sources: the tables in Schedule 2 incorporate statutory licence conditions under the Gas Industry Act, orders made under the Gas Industry Act, many clauses of the Energy Retail Code of Practice, and many clauses of the Gas Distribution Code of Practice. The Regulations explicitly define “Energy Retail Code of Practice” and “Gas Distribution Code of Practice” as Codes made under s 47(1) of the Essential Services Commission Act 2001 (reg 4). By cross-referencing Code clauses and licence-condition sections, these non-primary instruments and non-Act obligations are expressly brought within the civil penalty regime, subject to the tiered ceilings.

Penalty units and monetary conversion: the instrument references penalty units (Endnotes 3). The endnotes explain that penalties are calculated by multiplying the relevant number of penalty units by the value of a penalty unit under the Monetary Units Act 2004, and that the value for the financial year commencing 1 July 2024 is $197.59, with amounts able to be rounded to the nearest dollar. Thus the tier ceilings can be converted into approximate dollar maxima using the current published penalty-unit figure.

Interaction rules and limits: regulation 6 contains two notes limiting the application of the tiered ceilings. Note 1 states that civil penalty amounts for contraventions of civil penalty requirements that are not designated tier 1 or tier 2 are the amounts specified in the Act or the Essential Services Commission Act. Note 2 states that for persons other than licensees, the civil penalty amount for a contravention of a civil penalty requirement is the amount specified in the Act or in the Essential Services Commission Act 2001. These notes mean that the tiered ceilings operate in the context of pre-existing statutory penalty settings and that the tiered ceilings are primarily framed to govern (or to be available for) licensees as contemplated by the relevant subsections of the ESC Act referenced.

Administrative housekeeping: the endnotes and regulation 4 also make clear that the Regulations incorporate ordinary statutory drafting and interpretation features (references to the Interpretation of Legislation Act 1984 and style changes under s 54A of the ILA) and include sunset timing under the Subordinate Legislation Act 1994 (Endnotes 1).

In short, the main concepts are designation (which provisions count as civil penalty requirements), tiering (which provisions carry which ceiling), conversion (penalty units converted to dollars under existing Acts), and mapping of code/clause obligations and licence conditions into the civil penalties system administered under the Essential Services Commission Act.

Primary targets: licensees under the Gas Industry Act 2001 are the principal entities affected by the Regulations. The document repeatedly ties the prescribed ceilings to the purposes of s 54E(c), (d), (g) and (i) of the Essential Services Commission Act 2001 (regs 6-7); the Notes to regulation 6 make explicit that the tiered prescribed amounts are framed in relation to licensees, and that for persons other than licensees civil penalty amounts are those specified elsewhere (the Act or the Essential Services Commission Act). Many of the entries in Schedule 2 are statutory licence conditions (for example Section 33(1), Section 36(1), Section 42(1), and many others listed at Table 1 items 20-28 and Table 2 items 1-4), which will apply to holders of gas industry licences. Those licence holders therefore face the financial exposure created by the ceiling penalty units for breaches mapped to tier 1 or tier 2.

Businesses regulated by code obligations: parties who are subject to the Energy Retail Code of Practice and the Gas Distribution Code of Practice are directly affected because many specific code clauses are listed in Schedule 2. The Codes are themselves defined in regulation 4 as Codes of Practice made under s 47(1) of the Essential Services Commission Act 2001; by listing specific Code clauses (for example, in Table 1, Energy Retail Code clauses 26(4), 27(1), 85(8), 120(1), etc., and in Table 1/2 many Gas Distribution Code clauses), the Regulations make contravention of particular code obligations capable of attracting civil penalties under the ESC Act, subject to the tiered ceilings.

Contracting counterparties and consumers: although the Regulations are addressed to the statutory regime and the Commission, the practical economic effect is that businesses that contract with licensees or that rely on network services may see changes in behaviour. The Regulations increase the potential monetary exposure for licensees who fail to comply with the enumerated licence conditions and code clauses. Licensees may therefore alter commercial behaviour, contract terms, operational processes, pricing, insurance and pass-through arrangements. Consumers may be affected indirectly through these price, service or contractual adjustments , for example, compliance costs can be allocated through network charges or retail contract terms.

Regulated officers and advisers: directors, compliance officers, legal advisers and external auditors for licensees will be affected. The designation of code clauses and licence conditions as civil penalty requirements increases the legal and compliance burden on entities that must manage regulatory risk and to whom the possibility of substantial civil monetary liability attaches. The Endnotes and the monetary-unit conversion mechanism require those advisers to monitor annual penalty-unit values in order to quantify exposure.

Regulatory agencies and enforcement bodies: the Essential Services Commission of Victoria is the enforcement authority under the ESC Act; the Regulations inform the Commission’s tools by specifying which obligations fall within the civil penalty framework and what ceilings the Commission may work against under s 54E(c),(d),(g),(i). The Regulations do not themselves change the Commission’s decision-making machinery, but they alter the parameters (which provisions are punishable, and at what ceiling).

Other persons: regulation 6 Note 2 stresses that for “persons other than licensees” civil penalty amounts will be those already specified in the Act or ESC Act. That phrase is important because not every listed contravention will necessarily expose a private contractor or a third party to the tiered ceilings; the amount that applies to non-licensees may be governed elsewhere.

In sum, the Regulations primarily affect licensees and entities directly subject to Code clauses or licence conditions listed in Schedule 2, while also impacting advisers, contracting counterparties, and the Essential Services Commission’s enforcement calculus.

Duties created or aggregated by the Regulations

Designation duty: regulation 5 imposes a legal consequence by designating particular provisions of the Gas Industry Act 2001 (listed in Schedule 1) as civil penalty requirements for purposes of the Essential Services Commission Act 2001. The immediate effect is to place those Act provisions within the civil-penalty enforcement architecture of the ESC Act.
Obligations in Schedule 2: Schedule 2 (Tables 1 and 2) identifies specific obligations drawn from the Gas Industry Act (statutory licence conditions and orders) and from the Energy Retail Code of Practice and Gas Distribution Code of Practice. Where those identified provisions are contravened, they are subject to the civil-penalty regime and therefore to the prescribed ceilings in regs 6-7 (for tiered items). The Regulations therefore consolidate a large catalogue of rules that are enforceable through civil penalties.
Tiered ceiling duty: regulations 6-7 impose limits on the amounts the Commission may prescribe under s 54E(c),(d),(g),(i) for contraventions of the tiered requirements. The Regulations thus supply the Commission with statutory ceilings (not fixed dollar sums, but penalty-unit maxima) that frame the potential monetary remedy.

Rights and limits

Commission discretion within ceilings: the Regulations set maximums , for example, “an amount not exceeding 60,000 penalty units” for tier 1 matters (reg 6) and “an amount not exceeding 8,000 penalty units” for tier 2 matters (reg 7). The use of “not exceeding” indicates that the Commission’s ultimate selection of the civil penalty amount must be the Commission’s decision within that statutory cap. The Regulations do not remove the Commission’s discretion to determine an amount up to the ceiling when exercising powers under s 54E of the ESC Act, nor do they alter any procedural or evidentiary constraints contained in the ESC Act itself.
Pre-existing amounts remain for non-tiered items and non-licensees: regulation 6 Note 1 and Note 2 state that where a civil penalty requirement is not designated tier 1 or tier 2 the civil penalty amount remains as specified in the Act or in the Essential Services Commission Act 2001. For persons other than licensees, the civil penalty amount is likewise the amount specified in the Act or the ESC Act. This preserves pre-existing statutory choices about who carries what monetary exposure.
Conversion to dollars and rounding: the Regulations leave dollar conversion to the Sentencing Act 1991 (penalty unit definition) and the Monetary Units Act 2004 (conversion to dollars), and they explicitly note that the value of a penalty unit for the financial year commencing 1 July 2024 is $197.59 and that the calculated penalty may be rounded to the nearest dollar (Endnotes 3). Thus the cap in penalty units becomes a calculable dollar cap, subject to future Treasury determinations of the penalty-unit value.

Practical effect on duties and rights

Compliance duty: licence-holders and parties subject to the listed code clauses must comply with the relevant statutory and code obligations or face civil-penalty exposure up to the tier ceilings.
Procedural rights under ESC Act: the Regulations do not modify the procedural protections or appeal pathways that the Essential Services Commission Act provides when it exercises its powers. The Regulations operate to set the universe of applicable obligations and the ceiling amounts; any rights to notice, review, or appeal associated with enforcement under the ESC Act remain governed by that Act (the ESC Act is the operative enforcement statute referenced in regs 5-7, and the Regulations are expressly made for purposes of the ESC Act).
Limitation on extension of exposure: by confining tiered ceilings to specified lists and by preserving pre-existing amounts for other persons or other civil penalty requirements, the Regulations place an upper bound on the Commission’s capacity to levy excess penalty amounts beyond those expressed in the tables and notes. However, whether a particular contravention attracts a tier 1, tier 2, or other specified amount depends on the schedules as amended from time to time.

Key statutory references in the Regulations: regulation 5 (designation), regulations 6-7 (tiered ceilings), Schedule 1 (Act provisions prescribed), Schedule 2 (tier lists), regulation 4 (definitions), Endnotes 3 (penalty units and conversion).

Penalty architecture

Two-tier ceiling structure: the Regulations create a two-tiered monetary ceiling architecture for contraventions designated in Schedule 2. Tier 1 contraventions have a ceiling of “an amount not exceeding 60,000 penalty units” (reg 6). Tier 2 contraventions have a ceiling of “an amount not exceeding 8,000 penalty units” (reg 7). These amounts are prescribed for “the purposes of section 54E(c), (d), (g) and (i) of the Essential Services Commission Act 2001,” which is the statutory instrument authorising civil penalties administered by the Commission.
Application to licensees and others: the Notes in regulation 6 calibrate who the tiered ceilings are intended to govern. Note 2 specifies that for persons other than licensees the civil penalty amount is that specified in the Act or in the Essential Services Commission Act 2001. Note 1 states that where a civil penalty requirement is not tiered the amount remains as specified in the Act or the ESC Act. The upshot is that the tiered ceilings operate primarily in relation to licence holders, while preserving other statutory penalty amounts for non-tiered or non-licensee situations.

Dollar conversion and sample magnitudes

Penalty unit conversion: Endnotes 3 explain that the Regulations provide for penalties by reference to penalty units under s 110 of the Sentencing Act 1991 and that monetary calculation is governed by s 7 of the Monetary Units Act 2004. The endnotes state the value of a penalty unit for the financial year commencing 1 July 2024 as $197.59 and that the calculated amount may be rounded to the nearest dollar.
Illustrative conversions (as at the 1 July 2024 penalty-unit value stated in this instrument): a tier 1 ceiling of 60,000 penalty units converts to approximately $11,855,400 (60,000 × $197.59). A tier 2 ceiling of 8,000 penalty units converts to approximately $1,580,720 (8,000 × $197.59). These are statutory ceilings; the Commission may impose lower amounts within those ceilings when exercising its s 54E powers.

Enforcement mechanism

Enforcement sits with the Essential Services Commission Act framework: the Regulations do not themselves create new enforcement institutions. Rather, they prescribe which provisions count as civil penalty requirements for the purposes of the Essential Services Commission Act 2001 and prescribe the amounts for the purposes of particular subsections of s 54E of that Act (regs 6-7). Enforcement will therefore be conducted by the Commission under the ESC Act’s procedural and substantive rules. The Regulations supply the Commission with an evidential and monetary framework for enforcement, but they do not set out enforcement procedures themselves.

Limits, discretion and interaction with other specified amounts

Regulatory discretion within maximums: the phrasing “not exceeding” for the prescribed penalty units makes clear the Commission retains discretion to select an amount up to the ceiling. The Regulations do not displace other statutory provisions that specify amounts for non-tiered contraventions or for persons other than licensees (reg 6 notes).
Interplay with Act-specified civil penalties: regulation 5 Note 2 is a cautionary provision of practical importance: if a provision of the Act was specified as a civil penalty requirement in the Act but subsequently ceases to be so specified in the Act, the provision is not a civil penalty requirement even if it appears in Schedule 2, unless it is specified in Schedule 1. That note means that Act-level changes to the list of civil penalty requirements can override the Schedule 2 listing for that provision unless Schedule 1 expressly includes it. Schedule 1 therefore functions as a secure list of Act provisions declared by these Regulations to be civil penalty requirements.

Additional enforcement considerations

Need to track penalty-unit values: because the ceilings are expressed in penalty units, regulated entities and advisers must monitor the value of a penalty unit each financial year (Monetary Units Act 2004; Endnotes 3). The relevant value is published by the Treasurer and published in the Government Gazette and a Victorian newspaper before 1 June in the preceding financial year, per Endnotes 3.
Rounding and calculation: the endnotes permit amounts to be rounded to the nearest dollar. The calculation mechanism is thus administrative but requires current data to translate ceiling units into monetary exposure.
Sunset and amendments: the instrument will sunset on 19 July 2032 unless earlier amended, and it has already been amended by S.R. No. 84/2023 and S.R. No. 105/2024 (Endnotes 2). Amendments can alter which provisions are tiered and which ceilings apply; regulated parties therefore face potential exposure to changes over time.

Key statutory references: regs 6-7 (tiered ceilings), reg 5 (designation), Endnotes 3 (penalty-unit conversion), reg 4 (definition of Codes).

Primary enabling linkage

Gas Industry Act 2001: the Regulations are expressly made under section 236 of the Gas Industry Act 2001 (reg 2). They operate as subordinate legislation to that Act by prescribing, in Schedule 1, particular provisions of the Act as civil penalty requirements for the purposes of the Essential Services Commission Act 2001 (reg 5 and Schedule 1).
Essential Services Commission Act 2001: the Regulations are designed solely for application to the civil-penalty machinery of the ESC Act. Regulations 6 and 7 expressly prescribe amounts “for the purposes of section 54E(c), (d), (g) and (i) of the Essential Services Commission Act 2001.” The Codes named in regulation 4 (Energy Retail Code of Practice; Gas Distribution Code of Practice) are themselves made under s 47(1) of the ESC Act, which makes the Codes directly connected to the ESC Act’s statutory architecture. In short, these Regulations are a mapping instrument between the Gas Industry Act, the Codes created under the ESC Act, and the ESC Act’s civil penalty powers.

Penalty unit and monetary law

Sentencing Act 1991 and Monetary Units Act 2004: the instrument works with the penalty-unit system defined by the Sentencing Act 1991 (Endnotes 3). The conversion of penalty units to dollar amounts is governed by the Monetary Units Act 2004 (Endnotes 3). The Endnotes state the value of a penalty unit for a specific financial year and describe the Treasury publication requirements; hence the Regulations must be read in light of those statutes’ mechanics.

Subordinate Legislation Act 1994

Sunset: Endnotes 1 record that the Regulations will sunset 10 years after making (19 July 2032) pursuant to the Subordinate Legislation Act 1994. That Act therefore imposes a temporal limit on the Regulations' life unless they are remade or extended as provided under the Subordinate Legislation Act.

Interpretation of Legislation Act 1984 (ILA)

Drafting and interpretation rules: Endnotes include an extended note on interpretation (ILA) and style changes. The ILA provisions affect how headings, notes, punctuation and numbering are to be treated as part of the instrument and therefore impact interpretation and locating of “legislative items” such as penalties that appear at the foot of provisions.

Interplay between Act-specified and Regulation-specified civil penalty requirements

Supremacy of Act-specified designations in some circumstances: regulation 5 contains an explicit interaction rule: the Act itself may specify provisions as civil penalty requirements for the purposes of the Essential Services Commission Act 2001, and if a provision of the Act that was specified as a civil penalty requirement in the Act ceases to be so specified in the Act, it is not a civil penalty requirement even if it is specified in Schedule 2, unless it is specified in Schedule 1. That is, an Act-level delisting will remove civil-penalty status despite its appearance in Schedule 2 unless the Regulations' Schedule 1 itself lists the provision. Schedule 1 thus serves as the regulatory instrument’s authoritative list for Act provisions that are to be treated as civil penalty requirements irrespective of subsequent Act-level delistings.

Preservation of other statutory penalty amounts

The Regulations carefully preserve other statutory settings: regulation 6 Notes 1 and 2 make plain that the tiered ceilings do not displace amounts already specified in the Act or the ESC Act for civil penalty requirements that are not tier 1 or tier 2, or for persons other than licensees. The Regulations therefore function as a limited overlay on existing statutory penalty architectures rather than a total replacement.

Amendments and derivative effects

Updatability and code changes: Schedule 2 enumerates many Code clauses and licence-condition sections. Those Codes are instruments made under the ESC Act and can be amended; the Regulations have already been amended twice (S.R. No. 84/2023 and S.R. No. 105/2024) to keep the Schedules current. This creates an interdependency: amendments to Codes or to the Gas Industry Act may require further subordinate amendments to the Regulations to maintain alignment.

In short, the Regulations are a subordinate instrument that sits at the intersection of the Gas Industry Act, the Essential Services Commission Act, the Sentencing Act and the Monetary Units Act, and are constrained by the Subordinate Legislation Act and the ILA drafting/interpretation rules. They operate as a cross-reference and ceiling-setting instrument rather than as an independent enforcement regime.

Chronology recorded in the instrument

Original making and commencement: The Gas Industry (Penalty Regime) Regulations 2022 (S.R. No. 56/2022) were made on 19 July 2022 under s 236 of the Gas Industry Act 2001 and commenced on 19 July 2022 (reg 3; Endnotes 1).
Amending instruments recorded: The Endnotes state that the Regulations have been amended by:
- Gas Industry (Penalty Regime) Amendment Regulations 2023, S.R. No. 84/2023 (date of making 15 August 2023; date of commencement 15 August 2023), and
- Gas Industry (Penalty Regime) Amendment Regulations 2024, S.R. No. 105/2024 (date of making 8 October 2024; date of commencement 8 October 2024).

Specific changes disclosed in the body

Definition changes to Code name: regulation 4 contains a note that the definition of “Gas Distribution System Code of Practice” was inserted by S.R. No. 84/2023 reg 3, and that it was amended to “Gas Distribution Code of Practice” by S.R. No. 105/2024 reg 3. The regulatory history therefore records a change to the code name and presumably to the drafting of the definition to align with an amended Code title.
Substitution of Schedule 1: the text records that Schedule 1 was substituted by S.R. No. 105/2024 reg 4. That substitution means the list of Act provisions prescribed as civil penalty requirements (Schedule 1) changed in October 2024. The substituted Schedule 1 is reproduced in the instrument and contains 22 items (Act sections listed).
Amendments and substitution of Schedule 2: the instrument records that Schedule 2 was amended by S.R. No. 84/2023 regs 4 and 5, and then substituted by S.R. No. 105/2024 reg 5. The present Schedule 2 as reproduced therefore reflects cumulative changes effected by those amending instruments, and now contains Tables 1 and 2 with the many listed provisions and Code clauses.

Administrative notes and style changes

Interpretation and style: Endnotes explain that the Regulations adopt style changes authorised by the Interpretation of Legislation Act 1984 (s 54A of the ILA) and detail the interpretive rules around headings, notes, punctuation and the location of legislative items, which are relevant when amendments insert subclauses or alter numbering (Endnotes 3, ILA interpretation notes).

Effect of amendments on legal obligations

The substitution and amendment of the Schedules demonstrate that the list of provisions subject to civil penalties is intended to be updated over time to reflect legislative and code changes. Because Schedule 1 was specifically substituted, the set of Act provisions preserved as civil penalty requirements (independent of future Act delistings) was updated in October 2024. Likewise, Schedule 2’s substitution reflected a broader update of the tiered lists.

Sunset and future remakes

Sunset rule: Endnotes 1 state that the Regulations will sunset on 19 July 2032 under the Subordinate Legislation Act 1994. If the regulatory architecture is to remain in force beyond that date it will need to be remade or re-authorised in accordance with the Subordinate Legislation Act procedures.

Where to look for amendment details

The Table of Amendments in Endnotes 2 records the amending instruments and their dates. For exact textual comparisons between versions stakeholders need to access the amending statutory rules referenced (S.R. No. 84/2023 and S.R. No. 105/2024) and the Government Gazette or the consolidated legislation database cited in Endnote 1 (www.legislation.vic.gov.au).

Practical takeaway

The Regulations have been materially updated since their original making; the substitution of both schedules and the renaming of a Code definition indicate that the instrument is intended to be dynamically maintained to follow changes in Codes, licence conditions and the Act. Regulated entities must therefore track amending statutory rules and check the consolidated version for the current list of civil penalty requirements and tier assignments.

No litigation reported in the instrument

The text of the Regulations, the Schedules and the Endnotes contain no references to court cases, tribunal decisions or litigation that interpret the Regulations themselves. The instrument’s Endnotes include details about interpretation, style and amendments, but they do not record any judicial consideration or reported appeals related to this statutory rule.

Possible areas where litigation could arise (structure only)

While no cases are named in the instrument, the Regulations create potential legal issues that could attract litigation once enforcement action occurs under the Essential Services Commission Act 2001. Potential, structure-level dispute areas include:
- Whether a particular contravention qualifies as a civil penalty requirement under the Regulations (for example, whether a specific Code clause is of the kind captured by Schedule 2).
- Whether the tier assignment in Schedule 2 was properly applied to a given obligation.
- How s 54E of the Essential Services Commission Act should be applied in measuring or determining an appropriate civil penalty amount within the “not exceeding” ceiling specified by the Regulations.
- Conversion and calculation disputes about penalty-unit values and application dates, for example whether the penalty-unit value to be applied is the one current at the date of contravention or at the date of imposition, which are questions that often arise in penalty litigation; the Regulations do not specify timing rules beyond referencing the standard statutory mechanisms.

No case law references in this instrument

The instrument does not name any case law nor reproduce judicial interpretations. The absence of litigation history in the instrument means practitioners must search primary court and tribunal databases for any external litigation that interprets the interface between the Gas Industry Act, the Essential Services Commission Act and these Regulations.

Implication for practitioners

Because enforcement will be carried out under the Essential Services Commission Act 2001, parties assessing legal risk should monitor Commission enforcement activity and any related judicial decisions under the ESC Act or the Gas Industry Act, as those will determine how the Commission’s powers and the tier ceilings are applied in practice. The Regulations themselves, however, do not supply litigation or adjudicative history.

The Act vs Regulation lists divergence (reg 5 note 2)

The Regulations’ Schedule 2 lists many provisions and Code clauses but reg 5 Note 2 warns that if the Act itself ceases to specify a provision as a civil penalty requirement, that provision is not a civil penalty requirement even if it remains in Schedule 2, unless it also appears in Schedule 1. Practitioners must therefore check both the Gas Industry Act and Schedule 1 in the Regulations to be certain a listed Act provision is presently a civil penalty requirement.

Tiered ceilings are stated in penalty units, not dollars (regs 6-7; Endnote 3)

The Regulations specify ceilings as penalty-unit maxima. That requires an up-to-date conversion to dollars using the Monetary Units Act 2004 and the Treasurer’s published penalty-unit value. The Endnotes give $197.59 for the 2024-25 financial year, but that figure changes annually; failing to use the current value will misstate exposure. The instrument explicitly permits rounding to the nearest dollar.

Applicability to non-licensees differs (reg 6 notes)

Regulation 6 Note 2 specifies that for persons other than licensees the civil penalty amount is that specified in the Act or in the Essential Services Commission Act 2001. This means the tiered ceilings may not apply to non-licensees, and those parties must check alternative statutory provisions to determine exposure.

“Not exceeding” ceilings leave enforcement variance (regs 6-7)

The statutory phrasing is a ceiling, not a default. The Commission retains discretion to set amounts up to the ceiling under s 54E of the ESC Act. Therefore a high ceiling does not necessarily predict a high penalty in any given enforcement instance, while a low ceiling can cap the Commission’s monetary remedy regardless of the seriousness of a contravention.

Codes are instrument-based and can be renumbered or amended (reg 4; Sch 2)

Schedule 2 lists specific clause numbers from the Energy Retail Code of Practice and the Gas Distribution Code of Practice. When those Codes are amended, clause numbering or content can change; Schedule 2 itself has already required amendment (S.R. No. 84/2023; S.R. No. 105/2024). Regulated parties should ensure clauses cited in Schedule 2 still correspond to the present version of the Codes and keep an eye on amending statutory rules that substitute or amend the Schedules.

Two distinct lists: Schedule 1 vs Schedule 2 (reg 5; Sch 1 & Sch 2)

Schedule 1 lists Act provisions prescribed by these Regulations as civil penalty requirements. Schedule 2 contains tiered lists used to prescribe ceiling amounts. Because the two serve related but different functions, practitioners must check both schedules to understand whether (a) a provision is a civil penalty requirement at all, and (b) if it is tiered and what ceiling applies.

Pre-existing penalties remain for some contraventions (reg 6 note 1)

The Regulations only change amounts for tier 1 and tier 2 items. For civil penalty requirements that are not in those tiers the amount remains as specified in the Act or ESC Act. This patchwork means a comprehensive risk assessment must consider multiple instruments rather than relying on the Regulations alone.

Sunset date necessitates forward planning (Endnotes 1)

The Regulations will sunset on 19 July 2032 unless remade. Entities with long-term compliance programmes should factor this sunset and the possibility of re-making or replacement into their regulatory outlook.

Enforcement procedure remains governed by ESC Act (regs 5-7)

These Regulations set which provisions are actionable and the penalty ceilings but do not alter the ESC Act’s enforcement procedures, evidentiary rules, or appeal rights. Parties should therefore consult the ESC Act for procedural protections and enforcement mechanics.

Conversion timing and retroactivity questions are not settled here

The Regulations do not specify which penalty-unit value applies if a contravention spans multiple financial years or when the value changes between contravention and enforcement; those questions will implicate the Monetary Units Act and may be the subject of procedural argument in enforcement proceedings.

Stepwise compliance roadmap grounded in the instrument

Identify your status under the Gas Industry Act

Determine whether you are a licensee. Regulation 6 Note 2 differentiates between licensees and “persons other than licensees” for the application of prescribed amounts. The tiered ceilings in regs 6-7 are framed for the purposes of s 54E of the ESC Act and notes indicate different treatment for non-licensees.

Map obligations to the Schedules

Cross-check the business’s activities and licence conditions against:
- Schedule 1 (Act provisions prescribed as civil penalty requirements under this instrument), and
- Schedule 2, Table 1 (tier 1) and Table 2 (tier 2) for statutory licence conditions, orders, and specific Code clauses.
Remember reg 5 Note 2: confirm whether an Act provision is presently specified as a civil penalty requirement in the Gas Industry Act itself or included in Schedule 1; if it is delisted from the Act, Schedule 2 entry alone is insufficient unless Schedule 1 contains it.

Quantify maximum exposure in dollars using current penalty-unit values

Use the Monetary Units Act 2004 conversion method explained in Endnotes 3. Obtain the current penalty-unit value published by the Treasurer (the instrument cites $197.59 for the 2024-25 year). Multiply the relevant ceiling in penalty units by the current penalty-unit value and round to the nearest dollar as permitted. For example, as at the 2024-25 rate, tier 1 ceiling ≈ $11,855,400 and tier 2 ceiling ≈ $1,580,720; update calculations annually.

Update compliance registers and risk registers

Add each listed provision applicable to your operations to the entity’s regulatory compliance register, flagging whether it is tier 1, tier 2 or governed by another Act-specified amount. Record the maximum penalty exposure in dollars and the statutory reference (Reg 6/7; Schedule item number; Code clause; section of the Act).

Operationalise controls mapped to the clause-level obligations

For each Code clause and licence-condition clause listed in Schedule 2, document the specific operational behaviour required by the clause. Create or adapt policies, procedures, incident-response protocols, staff training modules and audit points to address the precise obligations. The Regulations bring clause-level obligations into the civil-penalty regime; compliance must therefore be clause-specific.

Contractual and insurance checks

Review standard customer and supplier contracts to ensure allocation of regulatory obligations and indemnities are consistent with the risk of civil penalties. Notify insurers about the revised penalty ceilings and obtain confirmatory advice on coverage for regulatory fines and related defence costs , note many insurers exclude fines, so verify policy terms.

Recordkeeping and evidence readiness

Because enforcement will proceed under the Essential Services Commission Act, maintain contemporaneous records demonstrating compliance efforts and decision-making on matters governed by the listed clauses. Good record-keeping is the primary practical defence in regulatory investigations and penalty assessments.

Monitor Codes and the Schedules for amendments

The Schedules have been amended and substituted (S.R. No. 84/2023; S.R. No. 105/2024). Subscribe to consolidated legislation notices, the Government Gazette and the Commission’s publications. When Codes change, verify whether the Scheme’s mapping in Schedule 2 still corresponds to operative clause numbers and content.

Engage with the Essential Services Commission’s guidance

Although the Regulations do not change ESC procedural rules, the Commission is the enforcing authority under the ESC Act. Review any guidance, enforcement priorities or compliance notes the Commission issues regarding the application of s 54E and the civil penalty regime. Use the Commission’s processes (for example, any consultative or engagement processes it makes available) to clarify compliance expectations.

Scenario planning and internal escalation

For higher-risk obligations (particularly tier 1 items with large dollar ceilings), implement board-level reporting triggers and internal escalation protocols. Ensure legal counsel is involved in the design of remediation plans and responses to Commission inquiries.

Checklist for first 90 days after identifying applicable provisions

Confirm licensee status and which Schedule items apply.
Calculate current-dollar ceiling exposure for each applicable tiered item using published penalty-unit values.
Update compliance register with clause-level controls and ownership.
Audit current compliance status against each Code clause and licence condition listed.
Engage external counsel/consultant for any compliance gaps that cannot be remediated quickly.
Notify relevant insurers and assess insurance coverage implications.
Prepare templates for Commission engagement and incident reporting.
Conduct staff training on new or reinforced obligations that are now explicitly within the civil-penalty framework.
Establish monitoring for legislative and Code amendments as these may change applicable obligations or tier assignments.

Documentation to maintain

Copy of the consolidated Regulations with Schedules current at the review date.
Crosswalk table between operational processes and Schedule clause numbers.
Calculation sheet showing penalty-unit conversion with sourced Treasurer value and date.
Evidence of training, updated procedures, audits and corrective actions linked to Schedule items.

Final practical note

The Regulations are a mapping and ceiling instrument. Compliance is therefore a function both of understanding exactly which statutory and code obligations are now inside the civil-penalty box and of operationalising controls at the clause level so the Commission, if it exercises enforcement, will find evidence of active compliance and remediation.

Gas Industry (Penalty Regime) Regulations 2022

Plain English Summary

Deep Dive

What it does

Current sections

Gas Industry (Penalty Regime) Regulations 2022

Source text: opening excerpt

1 Gas Industry (Penalty Regime) Regulations 2022

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

Litigation history

Gotchas

How to comply