sec.137RoLR notice—direction for gas

sec.137 RoLR notice—direction for gas

If, in the case of gas, there is no declared wholesale gas market or short term trading market or where, in the opinion of the AER, sufficient capacity or gas is not available in a short term trading market, the AER may include a direction in a RoLR notice to the effect of any or all of the following: a distributor must make available to a designated RoLR the capacity that was available, immediately before the transfer date, to the failed retailer on the distributor’s distribution pipeline; a service provider for a transmission pipeline must make available to a designated RoLR the capacity that was available, immediately before the transfer date, to the failed retailer on the provider’s transmission pipeline; a producer or any other person that has contracted to sell gas to the failed retailer must make available to a designated RoLR the gas that was contracted to the failed retailer. a blend processing service provider must make available to a designated RoLR the capacity in its blend processing facility that, immediately before the transfer date, was available to the failed retailer. The pipeline capacity or gas supply must be made available to the designated RoLR under subsection (1) within 24 hours after the RoLR notice containing the direction is given. In forming its opinion under subsection (1) as to whether or not sufficient gas is available in a short term trading market, the AER may proceed on the assumption that there is not sufficient gas unless, before the issue of a RoLR notice, AEMO notifies the AER in writing that there is sufficient gas. The following subsections of this section apply if the AER includes a direction under subsection (1) . The designated RoLR may, but is not obliged to, use any or all of the capacity or take any or all of the gas made available to it by a person who received a direction under subsection (1) . The terms and conditions for the transmission, distribution, sale and supply of gas to the designated RoLR— are— if there is an applicable access arrangement with respect to the distribution pipeline or transmission pipeline—to be in accordance with that applicable access arrangement; or if there is no applicable access arrangement—to be on the same terms and conditions as the contract for pipeline services (however the contract is named in the contract or elsewhere, but referred to in this section as the haulage contract ) in force with the failed retailer immediately before the transfer date; and are otherwise to be the same terms and conditions as in the gas sale and purchase contract (however the contract is named in the contract or elsewhere, but referred to in this section as the gas sale contract ) in force with the failed retailer immediately before the transfer date. The terms and conditions for access by the designated RoLR to a blend processing facility are to be the same terms and conditions applicable to the failed retailer immediately before the transfer date. Despite subsection (5) , if the terms and conditions of the haulage contract or the gas sale contract materially differ from those that otherwise prevail in the market, the AER may specify in the RoLR notice (or an amendment, which may have effect back to the transfer date) terms and conditions that, in its opinion, better accord with those that otherwise prevail in the market. Despite subsection (5a) , the AER may specify terms and conditions if— the terms and conditions under which the failed retailer accessed the blend processing facility materially differ from those that otherwise prevail in the market; and the AER considers that the terms and conditions it specifies better accord with the terms and conditions that otherwise prevail in the market. For subsection (6a) , the terms and conditions specified by the AER may be specified in— the RoLR notice; or an amendment to the RoLR notice, which may have effect back to the transfer date. In forming its opinion under subsection (6) or (6a) as to terms and conditions that better accord with those that otherwise prevail in the market, the AER may (without limitation) take into account the individual circumstances of the failed retailer and the designated RoLR. The designated RoLR and distributor or service provider of the transmission pipeline (as the case may be) must, as soon as practicable after the transfer date, commence negotiations for a replacement contract for pipeline services. The designated RoLR and a relevant blend processing service provider must, as soon as practicable after the transfer date, commence negotiations for a replacement contract for access to the blend processing facility. If a replacement contract is agreed, the direction ceases to have effect as from the date the replacement contract has effect. If, after 3 months from the transfer date, no replacement contract has been agreed— either party may commence an access dispute under Chapter 5 of the NGL; and the provisions of section 91BH (4) of the NGL apply to the access dispute in the same way as they apply to a determination by the AER of an access dispute referred to in those provisions; and the direction continues in force for the haulage contract until an access determination has effect under the NGL. For the purposes of subsection (10) (a) , the failure to agree to a replacement contract is taken to be an access dispute within the meaning of section 2 (1) of the NGL. If the gas sale contract in its terms continues in force despite the RoLR event— the insolvency official of the failed retailer or the failed retailer (as the case may be) must as soon as practicable after the transfer date commence negotiations with the designated RoLR and the producer or other person who was under the contract selling gas to the failed retailer for— the novation of the contract; or its termination and replacement by a new contract, between the designated RoLR and the producer or other person; and if a novation or replacement contract is agreed, the direction ceases to have effect for the gas sale contract as from the date the novation or replacement contract has effect; and if, after 3 months from the transfer date, there is no agreement— the insolvency official or failed retailer (as the case may be) must put the gas that is the subject of the contract up for sale by auction and must use their best endeavours to ensure that the auction is completed and the gas is sold within 6 months of the transfer date; and the insolvency official or failed retailer (as the case may be) and the producer or other person who was under the contract selling gas to the failed retailer must execute all documents required for both the auction and the sale of gas, including any new gas sale and purchase contract (however named in the contract or elsewhere) or any novation contract consequent on the auction; and when the gas has been sold, the direction ceases to have effect for the gas sale contract. If the gas sale contract in its terms terminates or is terminated because of the RoLR event— the producer or other person who was under the contract selling gas to the failed retailer (as the case may be) must as soon as practicable after the transfer date commence negotiations with the designated RoLR for a new contract between the designated RoLR and the producer or other person; and if a new contract is agreed, the direction ceases to have effect for the gas sale contract as from the date the replacement contract has effect; and if, after 3 months from the transfer date, there is no agreement— the producer or other person who was under the terminated contract selling gas to the failed retailer (as the case may be) must put the gas that is the subject of the terminated contract up for sale by auction and must use their best endeavours to ensure that the auction is completed and the gas is sold within 6 months of the transfer date; and the producer or other person who was under the terminated contract selling gas to the failed retailer (as the case may be) must execute all documents required for both the auction and the sale of gas, including any new gas sale and purchase contract (however named in the contract or elsewhere) consequent on the auction; and when the gas has been sold, the direction ceases to have effect for the gas sale contract. In this section, access determination , blend processing facility , blend processing service provider , distribution pipeline , pipeline services , producer , service provider and transmission pipeline have the same meanings as in the NGL and distributor includes a service provider for a pipeline that is not a scheme pipeline within the meaning of the NGL. s 137 amd 2022 No. 21 (SA) s 8 ; 2023 No. 36 (SA) s 81 ; 2025 No. 61 (SA) s 7 (sec.137-ssec.1) If, in the case of gas, there is no declared wholesale gas market or short term trading market or where, in the opinion of the AER, sufficient capacity or gas is not available in a short term trading market, the AER may include a direction in a RoLR notice to the effect of any or all of the following: a distributor must make available to a designated RoLR the capacity that was available, immediately before the transfer date, to the failed retailer on the distributor’s distribution pipeline; a service provider for a transmission pipeline must make available to a designated RoLR the capacity that was available, immediately before the transfer date, to the failed retailer on the provider’s transmission pipeline; a producer or any other person that has contracted to sell gas to the failed retailer must make available to a designated RoLR the gas that was contracted to the failed retailer. a blend processing service provider must make available to a designated RoLR the capacity in its blend processing facility that, immediately before the transfer date, was available to the failed retailer. (sec.137-ssec.1a) The pipeline capacity or gas supply must be made available to the designated RoLR under subsection (1) within 24 hours after the RoLR notice containing the direction is given. (sec.137-ssec.2) In forming its opinion under subsection (1) as to whether or not sufficient gas is available in a short term trading market, the AER may proceed on the assumption that there is not sufficient gas unless, before the issue of a RoLR notice, AEMO notifies the AER in writing that there is sufficient gas. (sec.137-ssec.3) The following subsections of this section apply if the AER includes a direction under subsection (1) . (sec.137-ssec.4) The designated RoLR may, but is not obliged to, use any or all of the capacity or take any or all of the gas made available to it by a person who received a direction under subsection (1) . (sec.137-ssec.5) The terms and conditions for the transmission, distribution, sale and supply of gas to the designated RoLR— are— if there is an applicable access arrangement with respect to the distribution pipeline or transmission pipeline—to be in accordance with that applicable access arrangement; or if there is no applicable access arrangement—to be on the same terms and conditions as the contract for pipeline services (however the contract is named in the contract or elsewhere, but referred to in this section as the haulage contract ) in force with the failed retailer immediately before the transfer date; and are otherwise to be the same terms and conditions as in the gas sale and purchase contract (however the contract is named in the contract or elsewhere, but referred to in this section as the gas sale contract ) in force with the failed retailer immediately before the transfer date. (sec.137-ssec.5a) The terms and conditions for access by the designated RoLR to a blend processing facility are to be the same terms and conditions applicable to the failed retailer immediately before the transfer date. (sec.137-ssec.6) Despite subsection (5) , if the terms and conditions of the haulage contract or the gas sale contract materially differ from those that otherwise prevail in the market, the AER may specify in the RoLR notice (or an amendment, which may have effect back to the transfer date) terms and conditions that, in its opinion, better accord with those that otherwise prevail in the market. (sec.137-ssec.6a) Despite subsection (5a) , the AER may specify terms and conditions if— the terms and conditions under which the failed retailer accessed the blend processing facility materially differ from those that otherwise prevail in the market; and the AER considers that the terms and conditions it specifies better accord with the terms and conditions that otherwise prevail in the market. (sec.137-ssec.6b) For subsection (6a) , the terms and conditions specified by the AER may be specified in— the RoLR notice; or an amendment to the RoLR notice, which may have effect back to the transfer date. (sec.137-ssec.7) In forming its opinion under subsection (6) or (6a) as to terms and conditions that better accord with those that otherwise prevail in the market, the AER may (without limitation) take into account the individual circumstances of the failed retailer and the designated RoLR. (sec.137-ssec.8) The designated RoLR and distributor or service provider of the transmission pipeline (as the case may be) must, as soon as practicable after the transfer date, commence negotiations for a replacement contract for pipeline services. (sec.137-ssec.8a) The designated RoLR and a relevant blend processing service provider must, as soon as practicable after the transfer date, commence negotiations for a replacement contract for access to the blend processing facility. (sec.137-ssec.9) If a replacement contract is agreed, the direction ceases to have effect as from the date the replacement contract has effect. (sec.137-ssec.10) If, after 3 months from the transfer date, no replacement contract has been agreed— either party may commence an access dispute under Chapter 5 of the NGL; and the provisions of section 91BH (4) of the NGL apply to the access dispute in the same way as they apply to a determination by the AER of an access dispute referred to in those provisions; and the direction continues in force for the haulage contract until an access determination has effect under the NGL. (sec.137-ssec.11) For the purposes of subsection (10) (a) , the failure to agree to a replacement contract is taken to be an access dispute within the meaning of section 2 (1) of the NGL. (sec.137-ssec.12) If the gas sale contract in its terms continues in force despite the RoLR event— the insolvency official of the failed retailer or the failed retailer (as the case may be) must as soon as practicable after the transfer date commence negotiations with the designated RoLR and the producer or other person who was under the contract selling gas to the failed retailer for— the novation of the contract; or its termination and replacement by a new contract, between the designated RoLR and the producer or other person; and if a novation or replacement contract is agreed, the direction ceases to have effect for the gas sale contract as from the date the novation or replacement contract has effect; and if, after 3 months from the transfer date, there is no agreement— the insolvency official or failed retailer (as the case may be) must put the gas that is the subject of the contract up for sale by auction and must use their best endeavours to ensure that the auction is completed and the gas is sold within 6 months of the transfer date; and the insolvency official or failed retailer (as the case may be) and the producer or other person who was under the contract selling gas to the failed retailer must execute all documents required for both the auction and the sale of gas, including any new gas sale and purchase contract (however named in the contract or elsewhere) or any novation contract consequent on the auction; and when the gas has been sold, the direction ceases to have effect for the gas sale contract. (sec.137-ssec.13) If the gas sale contract in its terms terminates or is terminated because of the RoLR event— the producer or other person who was under the contract selling gas to the failed retailer (as the case may be) must as soon as practicable after the transfer date commence negotiations with the designated RoLR for a new contract between the designated RoLR and the producer or other person; and if a new contract is agreed, the direction ceases to have effect for the gas sale contract as from the date the replacement contract has effect; and if, after 3 months from the transfer date, there is no agreement— the producer or other person who was under the terminated contract selling gas to the failed retailer (as the case may be) must put the gas that is the subject of the terminated contract up for sale by auction and must use their best endeavours to ensure that the auction is completed and the gas is sold within 6 months of the transfer date; and the producer or other person who was under the terminated contract selling gas to the failed retailer (as the case may be) must execute all documents required for both the auction and the sale of gas, including any new gas sale and purchase contract (however named in the contract or elsewhere) consequent on the auction; and when the gas has been sold, the direction ceases to have effect for the gas sale contract. (sec.137-ssec.14) In this section, access determination , blend processing facility , blend processing service provider , distribution pipeline , pipeline services , producer , service provider and transmission pipeline have the same meanings as in the NGL and distributor includes a service provider for a pipeline that is not a scheme pipeline within the meaning of the NGL.