Gas Supply Act 1996 (New South Wales) — Zoe

New South Wales act

Gas Supply Act 1996

In ForceNSW

Jurisdiction

New South Wales

Act Number

38 of 1996

Collection

act

Plain English Summary

7/10 complexity

What this law does, mechanically

Creates a legal framework for who may operate gas networks and how they must do it. It requires specific authorisations for reticulation of natural gas (reticulator’s authorisations) and licences for distribution of liquefied petroleum gas and other prescribed gases (distributor’s licences). Operating without the relevant permission is an offence with specified penalties (see sections 5, 34, 6, 35).
Sets out how to apply for, publish notice of, grant, refuse, vary, transfer and cancel those authorisations and licences. The Minister determines applications, may attach conditions, and must follow public-notice and consultation requirements for district extensions or new authorisations (see sections 7–12, 8, 9, 12, 37, 38).
Allocates enforcement roles and remedies between the Minister and the Independent Pricing and Regulatory Tribunal (the Tribunal). The Minister can impose large monetary penalties and cancel authorisations/licences; the Tribunal can impose smaller monetary penalties or require remedial action and must monitor compliance and report annually (see sections 13, 13A, 42, 42A, 75A).
Requires holders to meet ongoing administrative and operational conditions. Examples include paying annual fees (sections 15, 44), furnishing plans and reports for Minister approval (sections 11(2)(e), 40(2)(e)), keeping records and providing information to the Tribunal (section 33), membership of a designated information provider for underground-pipeline information (section 64B), and membership of the energy ombudsman scheme (section 11A).

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Deep Dive

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What it does

The Act establishes a regulatory framework for the supply and reticulation of gas in New South Wales. It does four mechanical things that structure private activity and public supervision.

First, it creates licensing and authorisation regimes that gate the operation of distribution pipelines for natural gas (authorisations, Part 2) and for liquefied petroleum gas and other non‑natural gases (licences, Part 3). A person must not operate a natural gas distribution pipeline without an authorisation (s 5) and must not operate a distribution system for LPG or other prescribed gases without a distributor’s licence (s 34). The Minister grants, modifies or refuses applications and may impose conditions on authorisations and licences (ss 7-9, 11, 36-41).

Second, it sets enforcement instruments and sanctions. The Minister and the Independent Pricing and Regulatory Tribunal (Tribunal) have parallel powers to impose monetary penalties and to cancel authorisations or licences for knowing contraventions (ss 13, 13A, 42, 42A). Criminal and civil offences related to theft, interference and unauthorised connections are created, with specified maxima and continuing offence rules (Part 5, e.g. ss 65-71, 84). Courts can order disconnection and payment for stolen gas (ss 73-75).

Third, it confers operational powers to network operators and inspectors over land, gas works and excavation activity. Network operators may erect gas works on public roads and are the owners of their gas works (ss 47, 52). Government inspectors and gas industry inspectors have entry, information‑gathering and direction powers, subject to notice and warrant requirements (Div 2 of Part 4; ss 55-64). Special protections and obligations apply to underground gas pipelines (Part 4A; ss 64B-64F), including mandatory use of a designated information provider and limits on civil liability for good‑faith conduct (s 64F).

Current sections

Direct links to the current provisions in Gas Supply Act 1996.

140

Official source available

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Sourced from legislation.nsw.gov.au, CC BY 4.0.

The Act’s stated objectives include encouraging a competitive gas market, protecting customer interests, facilitating continuity of natural gas supply and promoting safe use of gas (section 3). Those are policy statements; the Act converts them into operational tools: licensing/authorisation regimes, consultation rules, technical and prudential conditions, inspection and enforcement powers, and obligations on operators and applicants to produce plans, pay fees and comply with standards.
Who pays: holders of authorisations and licences pay application fees and annual fees (sections 7, 15, 36, 44). Persons who damage works or fail to comply with notices may be ordered to pay repair costs or compensation (sections 50AA, 50AB, 64E). Penalties for breaches are imposed on offenders or recovered as debts to the Crown (sections 13, 82). Network operators may recover inspection costs from landowners in prescribed circumstances (section 60).
Who decides: key discretionary decisions rest with the Minister (granting/refusing licences, imposing conditions and cyber security directions — sections 9, 11, 40, 76A) and the Tribunal (monitoring, recommending, imposing certain penalties or remedial orders — sections 13A, 75A). Inspectors exercise on‑the‑ground enforcement powers (sections 55–64). Regulations and Minister‑approved rules supply much of the operational detail (sections 33K, 83).
Behaviour changes the law creates: prospective operators must obtain authorisations/licences and meet technical/prudential conditions (sections 5, 6, 11, 40); persons carrying out excavation must seek pipeline location information before starting work (section 64C) and notify damage when it occurs (section 64D); operators must join designated information services and ombudsman schemes (sections 64B, 11A); operators must obey cyber security directions and reporting obligations (sections 76A, 76B, 72A); inspectors can inspect, require information or direct work to stop or be done (sections 55, 63B, 63C, 63D).

Administrative and compliance costs: The Act creates recurring and one‑off costs for operators — application and annual fees (sections 7, 15, 36, 44), required plans and insurance (sections 11(2)(d)–(e), 40(2)(d)–(e)), membership obligations (sections 11A, 64B), reporting and record‑keeping (sections 33, 76B). Those requirements impose financial and administrative burdens on licensees and applicants.
Discretion and decision risk: The Minister has broad powers to grant, refuse or impose conditions on authorisations and licences, and to issue cyber security directions (sections 9, 11, 38, 40, 76A). That concentrated decisional authority creates implementation risk and regulatory uncertainty for applicants and holders because outcomes depend on Ministerial assessments and certified policies (section 17(3)–(4)).
Enforcement and duplication of remedies: Both the Minister and the Tribunal may take action for contraventions (sections 13, 13A, 42, 42A). The Tribunal is restricted from acting where the Minister has already acted (sections 13A(9), 42A(9)), but multiple enforcement paths exist, increasing the range of potential sanctions and remedial requirements.
Incentives for safety and continuity: Inspectors’ powers to order disconnection/reconnection, to direct network operators or third parties, and the ability to recover costs for repairs create direct financial incentives to avoid damaging activity and to maintain safe operation (sections 54, 50, 50AA–50AB, 63C, 64E).
Information‑sharing and liability trade‑offs: The Act requires use of a designated information provider for underground pipeline mapping and limits liability for those providing or using that information unless bad faith or negligence applies (sections 64B, 64F). That mechanism lowers legal exposure for information providers but retains liability where conduct is negligent or in bad faith; regulations may cap negligence damages (section 64F(3)).
Effects on market entrants and competition: The requirement to obtain authorisations or licences, satisfy technical/prudential criteria, pay fees, meet insurance and reporting obligations, and accept conditions can raise entry costs and operational obligations (sections 9(2)(a), 11(2)(c)–(f), 40(2)(c)–(f)). The Act also prohibits Ministerial conditions about access terms to distribution pipelines (section 11(3)), which preserves some commercial negotiation space for access terms.
Implementation and compliance oversight: The Tribunal is charged with monitoring compliance and reporting annually (section 75A(3), (3C)–(3F)), and regulations govern many technical and consumer protection details (section 83). The reliance on regulations and Minister‑approved rules concentrates much operational detail outside primary legislation.

Main concepts

The Act defines a compact set of operational and regulatory concepts that determine rights, duties and enforcement.

Authorisation and licence: An authorisation (reticulator’s authorisation) permits the holder and persons specified to operate a distribution pipeline for natural gas (s 6). A distributor’s licence permits operation of a distribution system for LPG or other prescribed gases (s 35). Conditions, duration and transfer rules for both are set out in Parts 2 and 3 (e.g. ss 10-15, 39-46).

Network operator and reticulator: A network operator is either a reticulator (owner or controller of a natural gas distribution pipeline) or a distributor (operator of a distribution system for other gases) (Dictionary). The Act confers specific operational rights on network operators, such as carrying out gas works (s 47) and ownership protection for gas works (s 52).

Market operations rules and scheme regulator: The Minister may approve rules (market operations rules) that can govern operation of distribution pipelines, and specifically may approve rules establishing a wholesale natural gas market scheme and a scheme regulator with ordering powers and the capacity to impose civil penalties and recovery of costs (s 33K(1)(d1), (2A)). Compliance with those rules is a statutory obligation and a condition of authorisation (s 33L(1), (3)). Those rules must not be inconsistent with the Act, national retail or gas laws (s 33K(6)).

Inspector types and powers: Two inspector types operate under the Act. Government inspectors are appointed by the Minister and have investigation and enforcement powers (s 77(1)). Gas industry inspectors are appointed by network operators under guidelines and exercise specified network operator functions, limited to the operator’s distribution district (s 77(2)-(4)). Inspectors have entry, seizure, information‑requirement and direction powers (ss 55, 63A, 63B, 63C-63D), and entry to residential parts of buildings is constrained (s 63).

Designated information provider and excavation safeguards: For protection of underground pipelines, the Act requires network operators to be members of the designated information provider (currently Dial Before You Dig NSW/ACT Incorporated or a prescribed body) and makes membership a condition of licences and authorisations (s 64B). Those undertaking excavation work in prescribed areas must contact the designated information provider, comply with its procedures and allow time for response (s 64C). The Act imposes penalties for failure to notify of pipeline damage and provides for recovery of costs and compensation related to pipeline damage (ss 64D, 64E).

Enforcement mix: The Act uses administrative sanctions (Ministerial monetary penalties up to $250,000 for holders, and up to $50,000 on responsible officers) and Tribunal monetary penalties (statutory daily rates up to set maxima), criminal offences with specified maxima (for individuals and corporations), court powers to order disconnection and payment, and civil recovery mechanisms for costs and compensation (ss 13, 13A, 42, 42A, 65-66, 73-75, 64E).

Registers, fees and consultation: The Tribunal must keep public registers of authorisations and licences and Minister must advertise applications (ss 18, 46, 8, 37). Applications require Ministerially‑determined fees and information (ss 7, 36, 12(3), 41(3)), and the Minister must give due consideration to public submissions within set timeframes (s 8(1)-(3), s 37(1)-(3)). Annual authorisation and licence fees are mandatory conditions (ss 15, 44).

Integration and limits: The Act expressly requires consistency with the National Gas (NSW) Law and the National Energy Retail Law and their regulations, and bars construing its objects to create private causes of action (s 3(6)-(7)). Market operations rules are unenforceable to the extent inconsistent with those laws (s 33K(6)).

Who it affects

The Act affects a concentric set of participants in the gas supply chain, plus landowners and excavators.

Network operators: Reticulators and distributors are the primary regulated entities. They require Ministerial authorisations or licences to operate distribution pipelines (reticulators) or distribution systems (distributors) (ss 5, 34, 6, 35). Conditions include membership of the designated information provider (s 64B), compliance with market operations rules where applicable (s 33L(3)), payment of annual fees (ss 15, 44), and cyber‑security directions (s 76A) where issued by the Minister.

Retailers and shippers: Retailers and shippers are potentially scheme participants under market operations rules (s 33K(1)(d1)). Retailers supply customers under customer supply contracts which the regulations must prescribe standards for (s 83(3)(a)-(d)). The energy ombudsman scheme interacts with retail disputes (s 11A).

Customers and small retail customers: Customers are protected through licensing and regulatory conditions that require consideration of consumer interests (s 3(3)(e)), access to ombudsman decisions (s 11A), and protections in regulations for customer contracts, billing and debt collection procedures (s 83(3)). Customers face obligations as well, e.g. prohibition on abstracting gas without a retailer contract (s 65) and duties to notify of pipeline damage if caused by them (s 64D).

Local councils, roads authorities and landowners: Network operators may undertake work on public roads (s 47), but must give notice and allow councils at least 40 days to make submissions except in emergencies (s 47(4)). If gas works damage public roads/reserves, councils/roads authorities may require remedial work and recover costs (s 48). Landowners and occupiers who control structures adjoining gas works must comply with modification/removal notices and may be liable for costs (ss 49-50AA, 50AB).

Excavators, builders and developers: Persons proposing excavation in prescribed areas must contact the designated information provider and meet procedural requirements (s 64C). Failure attracts penalties and potential cost recovery. Inspectors may serve notice or prevent excavation to protect gas works (s 50A, s 63B).

Inspectors and authorised officers: Government inspectors (appointed by the Minister) and gas industry inspectors (appointed by network operators within guidelines) exercise statutory powers of entry, direction and information requisition (s 77). Their actions can affect businesses and private individuals, including power to seize items, require attendance and answers, and to give directions to ensure safe gas supply (ss 55, 63A, 63B, 63C, 63E).

Tribunal and Minister: The Minister decides on grant/transfer/conditions of authorisations and licences, approves market operations rules, imposes penalties, and may issue cyber‑security directions (ss 9, 11, 33K, 13, 76A). The Tribunal carries regulatory functions: monitoring, reporting, making recommendations and imposing penalties or remedial requirements (ss 75A, 13A, 42A). Appeals and administrative review rights attach to certain Ministerial and Tribunal decisions (ss 17, 17A, 45, 45A).

Third parties and designated information providers: Dial Before You Dig NSW/ACT or prescribed providers are central to excavation and pipeline safety (s 64A, 64B). Scheme operators under market rules (s 33LA) and designated information providers (s 64F) receive limited civil liability protection for acts in good faith or unless negligent.

Who pays: holders of authorisations and licences must pay annual fees (ss 15, 44). Persons responsible for damage or obstruction to gas works may be required to pay for removal or repair and may be ordered by a court to compensate network operators when convicted (ss 50AA, 50AB, 64E). Applicants pay application fees set by the Minister (ss 7, 36, 12(3), 41(3)).

Key duties and rights

Duties created by the Act are administrative, operational and procedural. Rights are largely conditional and regulatory.

Duties of holders of authorisations and licences: Holders must comply with conditions of their authorisation or licence, including statutory conditions and Ministerially‑imposed conditions (ss 11(1), 40(1)). Conditions can require plans, insurance, continued compliance with technical/prudential criteria, membership of the designated information provider and compliance with market operations rules (ss 11(2)(d)-(g), 11A, 64B, 33L(3)). Failure to comply may attract Ministerial or Tribunal enforcement (ss 13, 13A).

Obligations to customers and tariffs: The Minister and Tribunal have duties to consider protecting customers and promoting efficient, safe operations (s 3(1)-(5)). Regulations must prescribe customer supply contracts, bills, debt collection procedures and service standards (s 83(3)(a)-(d)). Holders are required to pay annual fees (ss 15, 44).

Inspector duties and powers: Government inspectors may direct network operators to disconnect, reconnect or take actions for compliance and safety (ss 54, 54A, 63C). Government inspectors may also require information and attendance (s 63B). Gas industry inspectors exercise specified network operator functions and have authorisation certificates (s 77, s 62).

Duties arising from market operations rules: Persons must not contravene market operations rules (s 33L(1)). Reticulators’ authorisations conditionally require compliance with those rules (s 33L(3)). Where rules establish a scheme regulator, the regulator may make orders and impose civil penalties that are payable by scheme participants (s 33K(2A)).

Rights to procedural fairness and appeal: Before the Minister or Tribunal take enforcement action under sections concerning authorisations/licences, notice and opportunity to make submissions are required; the holder must be given reasonable opportunity to discontinue contraventions and remedy effects before action (s 14, s 43). Appeals to the Supreme Court exist against certain Ministerial decisions (s 17, s 45) and administrative review rights to tribunals exist for Tribunal enforcement actions (ss 17A, 45A). Appeal hearings are by way of new hearing with fresh evidence permitted (ss 17(2), 45(2)).

Property and usage rights: Network operators are statutory owners of gas works regardless of land ownership (s 52(1)), and gas works are protected from execution for judgments against others (s 52(2)). Network operators may exercise rights to place and alter gas works on public roads, subject to notice to councils (s 47).

Information and register rights: The Tribunal must keep and make available a public register of authorisations and licences (ss 18, 46). Rules approved by the Minister must be published in the Gazette and made available to retailers/reticulators or on the Department website (s 33K(5)).

Limits on Ministerial power: The Minister may impose conditions on authorisations and licences but is expressly prevented from imposing conditions regarding terms on which an authorised reticulator grants access to its distribution pipelines (s 11(3)). Similarly, a licence condition requiring implementation of Government policy on community service obligations must be accompanied by a State indemnity for costs (s 40(2)(b)(ii), s 40(3)).

Immunity and liability limits: The Act contains limited immunities for scheme operators, designated information providers and their officers for acts done in good faith or without negligence, with regulation‑prescribed caps on negligent civil liability (ss 33LA, 64F). Inspectors and review panel members are protected from personal liability if acting in good faith (ss 79, 79A).

Obligations on excavators and duty to notify damage: Excavators must contact the designated information provider before starting work in prescribed areas and comply with its procedures (s 64C). Persons who become aware they have damaged an underground pipeline must notify the network operator as soon as practicable (s 64D).

Cybersecurity and reporting duties: The Minister may issue cyber‑security directions to network operators and the operators must comply (s 76A). The regulations may require reporting of incidents, metering operations and gas leakages to the Minister or Secretary (s 76B).

Penalties and enforcement

The Act establishes layered enforcement: administrative penalties by Minister/Tribunal; criminal penalties and sanctions; civil cost recovery and court orders; and regulatory enforcement via market rules.

Ministerial sanctions: Where the Minister is satisfied of a knowing contravention by a holder of an authorisation or licence, the Minister may impose monetary penalties up to $250,000 and, for corporate holders, impose up to $50,000 on responsible officers if they knowingly authorised or permitted the contravention; cancellation of the authorisation or licence is also available (ss 13(1), 42(1)). The Minister must give notice and opportunity to make submissions before action (s 14(1), s 43(1)).

Tribunal sanctions: The Tribunal may impose monetary penalties under ss 13A and 42A, with specific daily rates capped at $20,000 for the first day and $1,000 per subsequent day up to 30 days (ss 13A(6), 42A(6)). The Tribunal may alternatively require remedial action (publication, sending information to customers) provided the cost does not exceed the monetary penalty it could impose (ss 13A(2)-(3), 42A(2)-(3)). Tribunal action requires consideration of other penalties and the holder’s remedial action and is precluded if the Minister has already acted in respect of the same contravention (ss 13A(7), 13A(9), 42A(7), 42A(9)).

Criminal offences and penalties: The Act creates offences with monetary penalties and, in some cases, imprisonment. Theft of gas carries penalties (s 65). Interference with or damage to gas works is criminalised with maximum penalties for corporations and individuals, and for individuals may include up to 5 years’ imprisonment (s 66). Other offences include interference with meters, seals, unauthorised connections, and obstructing inspectors (ss 67-72), with specified maxima in penalty units.

Continuing offences: Many offences are continuing offences, attracting daily penalties where provided; the Act treats contraventions of continuing requirement provisions as continuing offences until compliance (s 84). Several sections specify further daily penalties for continuing contraventions (e.g. s 5, s 66 penalties include continuing components).

Court orders and civil remedies: Courts convicting offences under Part 5 may order disconnection or discontinuance of supply (s 73) and direct payment for stolen gas (s 74). The court may order payment of costs, expenses or compensation to network operators when the offender is convicted of offences under Part 4A (s 64E). Monetary penalties imposed by the Minister are recoverable as debts due to the Crown (s 82).

Market rules enforcement: Market operations rules may create civil penalties up to $50,000 for scheme participants and provide for recovery of costs payable by scheme participants when the scheme regulator makes an order or imposes a civil penalty (s 33K(2A)). Contravening market operations rules is itself an offence up to 200 penalty units (s 33L(1)).

Penalty notices and summary proceedings: Government inspectors may issue penalty notices for prescribed offences (s 85). Proceedings for offences are generally to be dealt with summarily in the Local Court unless otherwise provided; time limits and Court maxima for penalties in Local Court are specified (s 81).

Procedural safeguards: Before the Minister or Tribunal imposes enforcement action affecting authorisations/licences, the holder must be notified, given an opportunity to submit, and where relevant given opportunity to remedy the contravention (ss 14, 43). Appeals and reviews are provided: appeals to the Supreme Court against certain Ministerial decisions (ss 17, 45) and administrative review to the Civil and Administrative Tribunal of Tribunal decisions (ss 17A, 45A).

Limits and priorities: Tribunal enforcement action is constrained by consideration of overlapping penalties and compensation claims, the cost to the holder of any remedial action, and must consider the seriousness of contraventions (ss 13A(7), 13A(8), 42A(7), 42A(8)). Government inspector directions prevail over conflicting gas industry inspector directions (s 77B).

How it interacts with other laws

The Act is explicitly integrated with national and state energy statutes and with general procedural and criminal statutes.

National energy laws: The Act must be construed consistently with the National Gas (NSW) Law and National Energy Retail Law and their regulations; the Act’s objects cannot be applied in a way inconsistent with those instruments (s 3(6)). Market operations rules are unenforceable to the extent they are inconsistent with those national laws (s 33K(6)).

Cross‑statutory administrative frameworks: The Tribunal’s investigative powers and review panel procedures are tied to the Independent Pricing and Regulatory Tribunal Act 1992 (s 30(3), s 32(2), s 75A(4)). Administrative review rights under the Administrative Decisions Review Act 1997 apply to Tribunal decisions with certain exclusions (ss 17A(1)-(2), 45A(1)-(2)).

Criminal and evidence law: Entry warrants and warrants of entry are governed by the Law Enforcement (Powers and Responsibilities) Act 2002 and its warrant provisions apply to warrants issued under this Act (s 64(3)). The Act modifies admissibility protections where persons are required to give information; compelled answers are generally not admissible against the person in criminal proceedings except in limited circumstances (s 63E).

Civil procedure and compensation: Court orders for compensation operate as judgments under the Civil Procedure Act 2005 (s 64E(3)-(4)). Orders for payment made by Local Court under Part 5 are treated and enforced as civil judgments under the Local Court Act and Civil Procedure Act pathways (s 75).

Real property: The ownership and protection of gas works override certain property law concepts: network operators are owners of gas works irrespective of land ownership and gas works are not to be taken in execution of a judgment against another person, notwithstanding provisions of the Real Property Act 1900 (s 52(1)-(3)).

Public sector and delegation: The Minister may delegate functions to the Secretary, with exceptions (s 83A). Inspectors appointed under prior legislation are preserved as inspectors under this Act in some transitional provisions (Schedule 2). The Act binds the Crown in right of NSW (s 76).

Industry codes and standards: Regulations may adopt or incorporate standards, codes or specifications and may require compliance with gas quality, safety and design standards; regulations can create offences with substantial penalties (s 83). Market operations rules may incorporate provisions of any statutory or non‑statutory publication (s 33K(2)).

Interaction with ombudsman and retail law: Membership of energy ombudsman scheme and the binding nature of its decisions for small customer disputes with authorised reticulators is a condition of authorisation (s 11A). Provisions preserve the interplay between regulated offer customers and the ombudsman schemes and energy retail laws in transitional parts (Parts 3 and 9).

Limits on creating private causes of action: The objects and duties imposed on Minister, Tribunal and review panels are expressly not sources of civil causes of action (s 3(7)). This limits private enforcement of statutory policy goals outside the specific enforcement mechanisms provided.

Amendment history

The Act text supplied includes numerous amendments and insertions indicated in section notes attached to many provisions, showing a legislative evolution. The Act was originally the Gas Supply Act 1996, with multiple subsequent amending Acts and specified insertions and repeals referenced in the marginal notes. The key amendment patterns evident in the text are:

Addition and later removal of Part 2A provisions relating to natural gas wholesale market operation, with multiple sections inserted (pt 2A, ss 33J-33LA) and later repealed or reworked (e.g. many pt 2A divisions show repeals: 33A-33I repealed; 33M-33T repealed). Section notes record changes in 2001, 2008, 2009 and 2012 (s 33K notes).
Extensions of inspector and entry powers and the introduction of modern inspection and information powers in 2025 amendments, with numerous sections updated (e.g. ss 55, 56, 57, 58, 59, 60, 61, 62, 63A-63E, 64 amended or inserted in 2025). Schedule references show 2025 No 21 being a significant recent amendment.
Introduction of Part 4A protecting underground gas pipelines in 2009 (ss 64A-64F), including obligations to use a designated information provider and caps on civil liability (s 64F inserted 2009). Subsequent amendments updated these provisions (noted 2025, 2022).
Addition of cyber‑security directions powers in s 76A (ins 2010; amended 2021 and 2025), and the regulatory power to require notification and reporting in s 76B (ins 2025).
Introduction of ombudsman membership obligations (s 11A) in 2012, linking reticulators to energy ombudsman schemes and making ombudsman decisions binding on small customer disputes.
Changes to enforcement maxima and Tribunal powers (ins 2000 No 60 sch 1.3; subsequent amendments in 2021 expand certain enforcement provisions).
Repeated adjustments to definitions and the Dictionary in Schedule 3 across 1998-2026 (notes show multiple amendments), including renumbering to Sch 3 in 2024.

Transitional and saving provisions are collected in Schedule 2, which includes numerous references to amending Acts, indicating staged application of reforms and preservation of rights/appointments, such as inspectors and authorisations under prior Gas Industry Restructuring Act 1986 (sch 2, cl 3-11 etc).

The marginal notes identify specific Acts and years: for example, amending Acts cited include 1998 No 41, 2000 No 60, 2001 No 18, 2008 No 13, 2009 No 31, 2010 No 7, 2012 No 38, 2015 No 36, 2021 No 34, 2022 No 26, 2024 No 47, 2025 No 21 and a 2026 amendment to the Dictionary (2026 No 2). The amendment notes attached to individual sections in the text point to which parts were inserted, substituted, repealed or amended by those instruments.

Mechanically, amendments have repeatedly expanded compliance and safety powers (inspectors, information), introduced market‑facing rule‑making authority, formalised ombudsman and information provider roles, and updated enforcement and liability structures to address evolving industry risks (e.g. cybersecurity, pipeline protection).

Gotchas

Several practical traps arise directly from statutory language. These are mechanical, not evaluative, and reference the specific sections.

Ministerial discretion and procedural traps: The Minister has broad discretion to refuse, grant with modifications or impose conditions on authorisations and licences (ss 9(1), 11(1)(b), 40(1)(b)). However, holders have procedural protections: notice and opportunity to make submissions before conditions are imposed (s 14(1), s 43(1)). Applicants should note the Minister may adopt technical or prudential criteria to refuse applications (s 9(2)(a), s 38(2)(a)), and there are specified timeframes the Minister should endeavour to meet (s 9(3), s 38(3)). Failure to address these procedures can create grounds for appeal (s 17, s 45).

Limits on conditions: The Minister may not impose conditions on an authorisation with respect to terms on which an authorised reticulator grants access to its distribution pipelines (s 11(3)). This is a narrowly worded prohibition that may not prevent other forms of regulation affecting access indirectly. For licences, the Minister may impose conditions that implement Government policy on community service obligations only where the State indemnifies the licence holder for compliance costs (s 40(2)(b)(ii), s 40(3)); absence of an indemnity means such conditions are impermissible.

Overlap of enforcement pathways and double exposure: A contravention may attract Tribunal civil penalties, Ministerial monetary penalties, criminal prosecution and regulatory orders under market operations rules (ss 13A(10), 13(1), 33L(1)). The Tribunal must consider whether the contravention is or is likely to be subject to other penalties before acting (s 13A(7)(a)), but a person may still be subject to multiple actions unless expressly precluded.

Notice and remedy requirements as preconditions: The Minister and Tribunal cannot act under enforcement sections without giving notice of the contravention and opportunity to discontinue and remedy the situation (s 14(2), s 43(2)). For holders, failure to respond to such notices before the Minister/Tribunal acts is a key procedural risk.

Entry and force limitations: Inspectors’ powers of entry to non‑residential parts allow reasonable force (s 57(1)); for gas industry inspectors, force requires written authorisation by the network operator and must specify circumstances (s 57(1A)-(2)). Entry to residential premises is tightly constrained and generally requires consent or a warrant (s 63). Practitioners should note the difference in authorisation and that failure to follow certificate and notice processes can engage penalties (s 62(1)-(3), s 56).

Compensation and cost recovery nuances: Network operators may recover costs for repair or removal of obstructions (ss 50AA, 50AB) and courts may order payment for stolen gas and operational costs when offences are proved (ss 64E, 74). But recovery is constrained where structures were lawfully placed before gas works were installed or with operator consent (s 50AA(3), s 50AB(3)). These exceptions require careful factual analysis.

Obligations on excavators: Excavation in prescribed areas requires contact with the designated information provider and compliance with its procedures (s 64C). Multiple parties working on the same site may rely on earlier compliance by another party (s 64C(2)), but failure to comply attracts heavy penalties: up to 2,000 penalty units for corporations and 400 penalty units for individuals (s 64C(1), (3)).

Interaction with national laws: Market operations rules and many regulatory instruments are subject to being consistent with national laws; inconsistent provisions are unenforceable (s 33K(6)). Parties should not assume Ministerial or rule‑based requirements trump national energy law.

Liability caps and agreements: The Act allows regulation‑prescribed caps on civil monetary liability for scheme operators and designated information providers for negligent acts, and parties can contract to vary or exclude these limits (ss 33LA(3)-(5), 64F(3)-(5)). Drafting commercial agreements should consider these statutory default caps and permitted contractual variations.

Cybersecurity and reporting requirements: The Minister can issue binding cyber‑security directions with monetary penalties for non‑compliance (s 76A). Regulations may impose reporting obligations with potentially high regulatory penalties (s 76B, s 83(6) note). Network operators should factor these obligations into risk management and compliance programs.

Registers and public access: Registers of authorisations and licences are public and must be available for inspection free of charge during normal office hours; copies are provided at cost (ss 18(3)-(4), 46(3)-(4)). Information in those registers can influence market perceptions and due diligence.

How to comply

Compliance under the Act requires a combination of licencing discipline, procedural safeguards, operational practices and record keeping.

Licencing and authorisation diligence

Confirm whether your activities require an authorisation (natural gas distribution pipeline) or a distributor’s licence (LPG or other prescribed gases) and apply through the Tribunal with the Minister‑determined fee and information (ss 5, 34, 6, 7, 36).
Track conditions imposed on authorisations and licences; these are mandatory and may include membership of the designated information provider, insurance, approved operational plans, market rules compliance and annual fees (ss 11, 11A, 64B, 15, 44).
Where a licence/authorisation application affects a distribution district, comply with public consultation requirements and allow the required 40‑day submission period (ss 8, 37, 12(2)-(3), 41(2)-(3)).

Operational and safety controls

Maintain membership and compliance with the designated information provider and ensure pipeline location information is available for excavation requests to comply with ss 64B-64C.
Adopt and document plans for safe construction, maintenance and decommissioning of gas works consistent with regulations (s 83(2)(f), (n), (o)) and approved plans required under licence conditions (ss 11(2)(e), 40(2)(e)).
Implement cyber‑security policies aligned with likely regulations and be prepared to act on Ministerial cyber‑security directions; document incident response and reporting procedures (s 76A, s 72A, s 76B).

Inspector and entry compliance

Ensure that gas industry inspectors are appointed in accordance with Departmental guidelines and that inspectors have certificates of authority (s 77, s 62). Maintain procedures for lawful entry, notice giving and the use of force where authorised (ss 55-57, 56).
Comply promptly with written notices from inspectors requiring information, attendance, or remedial action; the statutory penalties for failure are high (s 63B, s 63C).

Regulatory and market rule compliance

If market operations rules apply, ensure organisational compliance processes to avoid contravening statutory obligations (s 33K, s 33L). Track any scheme operator orders and civil penalties and be prepared for regulator cost recovery obligations (s 33K(2A)).
Keep required records and furnish them to the Tribunal on direction to enable regulatory monitoring (s 33).

Contracts, customer procedures and ombudsman

Use customer supply contracts and billing formats required by regulations and ensure debt collection, disconnection and reconnection practices comply with prescribed procedures (s 83(3)(a)-(c)). Membership of the energy ombudsman scheme is a condition of authorisation and reticulators must comply with its decisions for small customer disputes unless exempted (s 11A).

Incident reporting and remediation

Adopt notification protocols for pipeline damage and gas incidents and report as required under regulations; respond to notices to modify or remove structures that interfere with gas works and seek to recover or settle cost claims promptly in accordance with ss 50-50AB, 64D-64E.
Where damage occurs, follow statutory steps for notifying network operators and maintain incident logs to support any defences or cost recovery claims (s 64D).

Governance, liability management and insurance

Ensure board and senior management are aware that corporate contraventions can attach liability to directors or managers who knowingly authorised or permitted the contravention (s 13(1)(b), s 42(1)(b), s 80). Maintain technical and prudential criteria compliance documentation to meet Ministerial standards for viability where required (s 9(2), s 38(2)).
Consider insurance to cover statutory and contractual risks and be aware that some licence conditions may require specified insurance (ss 11(2)(d), 40(2)(d)).

Record keeping and registers

Keep accurate records to comply with Tribunal directions on record keeping and information provision (s 33). Monitor the register entries at the Tribunal and ensure any authorisation/licence details are up to date (ss 18, 46).

Dispute and appeals readiness

When notified of proposed enforcement action, make submissions in the timeframe and, where appropriate, remedy contraventions promptly to avoid escalation (ss 14, 43). Understand appeal rights to the Supreme Court for Ministerial decisions and administrative review rights for Tribunal actions (ss 17, 17A, 45, 45A).

Contracts and agreements with scheme operators/designated providers

Review and, if necessary, negotiate contractual terms that vary statutory liability caps for scheme operators and designated information providers (ss 33LA(5), 64F(5)). Document agreed allocations of risk for negligent acts consistent with regulation‑prescribed maxima.

Regulatory monitoring and legislative consistency

Monitor regulations and national energy laws for changes that may affect obligations, noting that market rules and regulations must be consistent with the National Gas (NSW) Law and National Energy Retail Law (s 33K(6), s 3(6)). Ensure compliance programs are updated accordingly.

A compliance programme mapped to these statutory requirements, supported by documented procedures, incident response plans, membership of the designated information provider, inspector training, cyber‑security planning and a regulatory register of obligations will address the primary exposures the Act creates.