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National Gas (South Australia) Act 2008
4AEMO has additional functions and powers under the National Energy Retail Law and the National Energy Retail Rules.
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4 AEMO has additional functions and powers under the National Energy Retail Law and the National Energy Retail Rules.
(2) AEMO must, in carrying out functions referred to in this section have regard to the national gas objective.
91AB—AEMO's power to carry out statutory functions
AEMO has the power to do all things necessary or convenient for or in connection with its statutory functions.
91AC—Delegation
(1) Subject to subsection (2) and the Rules, AEMO may delegate any of its functions or powers under this Law, the Rules or the Procedures to—
(a) a director, officer or employee of AEMO; or
(b) a member of a committee established by AEMO.
(2) However, a function or power classified by the Regulations as non‑delegable cannot be delegated.
(3) A delegate may, subject to AEMO's directions, subdelegate a delegated function or power to a director, officer or employee of AEMO.
(4) A delegate (or subdelegate) must comply with any direction given by AEMO that is relevant to the exercise of the delegated functions or powers.
Division 1A—AEMO's east coast gas system reliability and supply adequacy functions
91AD—AEMO's east coast gas system reliability and supply adequacy functions
(1) AEMO's east coast gas system reliability and supply adequacy functions are as follows:
(a) to monitor trends in the supply of, and demand for, covered gas in the east coast gas system and factors affecting, or that may potentially affect, the reliability or adequacy of the supply of gas within that system;
(b) to identify and communicate actual or potential risks or threats to the reliability or adequacy of the supply of covered gas within the east coast gas system;
(c) to report to and advise the MCE, including a member of the MCE, on matters relating to the reliability or adequacy of the supply of covered gas within the east coast gas system;
(d) to publish information relating to the reliability or adequacy of the supply of covered gas within the east coast gas system;
(e) to give directions to relevant entities to the extent AEMO considers necessary to maintain and improve the reliability or adequacy of the supply of covered gas within the east coast gas system;
(f) to trade in covered gas or to purchase pipeline services or services provided by a compression service provider, blend processing service provider or a storage provider to the extent AEMO considers necessary to maintain and improve the reliability or adequacy of the supply of covered gas within the east coast gas system;
(g) other functions conferred on AEMO by the Rules for the purposes of this section;
(h) to make, amend or revoke Procedures (East Coast Gas System Procedures) relating to a function specified in paragraphs (a) to (g).
(2) AEMO must not exercise the function specified in subsection (1)(f) unless AEMO is of the opinion that the trade or purchase is necessary to prevent, reduce or mitigate an actual or potential threat identified by AEMO in the exercise of the function specified in subsection (1)(b).
(3) AEMO must, within 3 months after the commencement of this section—
(a) prepare, in accordance with the Rules, guidelines relating to the exercise or performance of the functions specified in subsection (1)(e) and (f); and
(b) publish the guidelines on its website.
(4) The Regulations may specify the following:
(a) the relationship between the operation of this Division, or a provision of this Division, and a law of a participating jurisdiction, in the event of an inconsistency;
(b) the extent to which a relevant entity is or is not required to comply with an east coast gas system direction in circumstances where the direction is inconsistent with a law of a participating jurisdiction;
(c) the extent to which an east coast gas system direction is not valid in circumstances where the direction is inconsistent with a law of a participating jurisdiction.
(5) The Rules may specify the following:
(a) the matters that AEMO may or must consider in determining there is or is not an actual or potential threat to the reliability or adequacy of the supply of covered gas within the east coast gas system;
(b) the kinds of directions that AEMO may or may not give under this section;
(c) the matters that AEMO may or must consider in determining whether to exercise a function specified in subsection (1)(e) or (f).
91AE—AEMO to account to relevant Minister for performance of east coast gas system reliability and supply adequacy functions
(1) AEMO must, at the written request of a Minister of a participating jurisdiction that is an east coast jurisdiction, provide information about the performance of its east coast gas system reliability and supply adequacy functions in relation to that jurisdiction.
(2) AEMO must, at the written request of the MCE, provide information about the performance of its east coast gas system reliability and supply adequacy functions in accordance with the request.
(3) Protected information provided in response to a request under this section must be identified as such by AEMO at the time of providing the information.
(4) No fee is to be charged for the provision of information under this section.
91AF—AEMO's power of direction—east coast gas system reliability and supply adequacy
(1) AEMO may give a written direction (an east coast gas system direction) to a relevant entity for 1 or more of the following purposes:
(a) to maintain and improve the reliability of the supply of covered gas within the east coast gas system;
(b) to maintain and improve the adequacy of the supply of covered gas within the east coast gas system.
(2) A direction must not be given under subsection (1) unless AEMO is of the opinion that the giving of the direction is necessary to prevent, reduce or mitigate an actual or potential threat identified by AEMO in the exercise of the function specified in section 91AD(1)(b).
(3) Without limiting subsection (1), an east coast gas system direction may relate to 1 or more of the following:
(a) the operation, maintenance or use of any equipment or installation;
(b) the control of the flow of covered gas;
(c) any other matter that may affect the reliability or adequacy of the supply of covered gas within the east coast gas system.
(4) An east coast gas system direction may apply, adopt or incorporate (with or without modification) a relevant code of practice or standard (made in or outside Australia) as in force or existing when the direction is made or as in force or existing from time to time.
(5) A prohibition imposed by an east coast gas system direction may be either unconditional or subject to conditions stated in the direction.
(6) A person to whom an east coast gas system direction applies must comply with the direction to the extent to which compliance is consistent with a law of a participating jurisdiction applying to the person.
(7) A person incurs no civil monetary liability for damage, loss or injury resulting from an act or omission done or made in good faith and in compliance or purported compliance with an east coast gas system direction.
relevant entity means the following, excluding a small customer:
(a) a Registered participant;
(b) an exempted participant;
(c) a producer who injects covered gas into the east coast gas system;
(d) a person who buys or sells covered gas in the east coast gas system;
(e) a gas powered generator;
(f) a storage provider whose storage facility is connected to the east coast gas system;
(g) a person who provides pipeline, transport, compression or other related services in, into or out of the east coast gas system;
(h) a person specified as a relevant entity by the Rules;
small customer means—
(a) a small customer within the meaning of section 5(2) of the National Energy Retail Law; and
(b) a relevant customer within the meaning of the Order made under section 43 of the Gas Industry Act 2001 of Victoria and published in the Victoria Government Gazette on 25 November 2008.
91AG—East Coast Gas System Procedures
(1) The East Coast Gas System Procedures may deal with the following matters:
(b) any other matter relevant to AEMO′s east coast gas system reliability and supply adequacy functions on which this Law or the Rules contemplate the making of Procedures.
(2) The East Coast Gas System Procedures—
(c) may confer rights or impose obligations on relevant entities; and
(d) may require a relevant entity to give an indemnity against injury, damage or loss arising from the entity′s failure to comply with requirements imposed by the Procedures; and
(e) may confer power on AEMO to make or issue guidelines, tests, standards and other documents of an administrative nature; and
(f) may confer power on AEMO to require a person on whom a right is conferred, or an obligation imposed, under the Procedures—
(g) may exempt, or confer a power of exemption, from the application of the Procedures or specified provisions of the Procedures; and
(h) may contain provisions of a savings or transitional nature.
(3) AEMO must not, without the consent of the MCE, make East Coast Gas System Procedures that confer a right or function, or impose an obligation, on the MCE or a Minister of a participating jurisdiction.
(4) The East Coast Gas System Procedures must not—
91AH—Compliance with East Coast Gas System Procedures
(1) AEMO and each person to whom the East Coast Gas System Procedures are applicable must comply with those Procedures.
(2) If AEMO has reasonable grounds to suspect a breach of the East Coast Gas System Procedures, it must, after making such inquiries and investigation as it considers appropriate, make a decision as to whether the breach is a material breach.
(b) may direct the person suspected of the breach to rectify it or to take specified measures to ensure future compliance (or both); and
(b) specify the date by which the direction must be complied with; and
(6) AEMO must give a copy of its decision under subsection (2), its reasons for the decision and (if relevant) any direction under subsection (3)(b) to the AER.
(a) publish the decision and the reasons for the decision on its website; and
(b) give a copy of the decision and the reason for the decision to the AER.
AEMO may provide the AER with relevant information, including protected information, related to a suspected breach of the Procedures. For disclosure of protected information, see section 91GC(2)(b).
Division 2—AEMO's declared system functions
91B—Application of this Division
(1) This Division applies to, and in relation to, a participating jurisdiction if (and only if) the application Act of that jurisdiction, or an instrument made under that Act, declares that it does so apply.
(2) In this Division—
(a) a reference to a storage provider extends to a declared LNG storage provider; and
(b) a reference to natural gas extends to liquefied natural gas stored by the declared LNG storage provider.
(3) A rule or other form of subordinate legislation made for the purposes of this Division applies to and in relation to a participating jurisdiction if (and only if) this Division applies to and in relation to that jurisdiction.
91BA—AEMO's declared system functions
(1) AEMO's declared system functions are as follows:
(a) to determine security standards for the declared transmission system;
(b) to control the operation and security of the declared transmission system;
(c) to monitor and review the capacity of the declared transmission system and the trends in demand for the injection of gas into, and the withdrawal of gas from, that system;
(d) to provide information and other services to facilitate decisions for economically efficient investment in the covered gas industry in the adoptive jurisdiction;
(e) to coordinate the interaction of producers, blend processing service providers, storage providers and service providers for ensuring a safe, secure, reliable and efficient declared transmission system;
(f) to operate and administer the declared wholesale gas market;
(g) to make, amend or revoke Procedures governing the operation and administration of the declared wholesale gas market.
(2) AEMO may trade in covered gas or purchase pipeline services or services provided by a compression service provider, blend processing service provider or a storage provider—
(a) to the extent necessary or desirable for the safety, security or reliability of a declared transmission system; or
(b) in an emergency.
(3) AEMO may, subject to the Rules, suspend a declared wholesale gas market.
91BB—AEMO to account to relevant Minister for performance of declared system functions
(1) AEMO must, at the written request of the Minister of an adoptive jurisdiction, provide information about the performance of its declared system functions with respect to that jurisdiction.
(2) Protected information provided in response to a request under subsection (1) must be identified as such by AEMO at the time of providing the information.
(3) No fee is to be charged for the provision of information under this section.
Subdivision 2—Power of direction
91BC—AEMO's power of direction
(1) AEMO may give written directions to a Registered participant (or an exempted participant) with respect to the declared transmission system or a declared distribution system for 1 or more of the following purposes:
(a) to maintain and improve the reliability of the supply of covered gas;
(b) to maintain and improve the security of the declared transmission system or a declared distribution system;
(c) in the interests of public safety.
(2) A direction under this section—
(a) may relate to—
(i) the operation or use of any equipment or installation; or
(ii) the control of the flow of covered gas; or
(iii) any other matter that may affect the safety, security or reliability of the declared transmission system or a declared distribution system; but
(b) must be consistent with other legislation (including subordinate legislation) relevant to safety in the adoptive jurisdiction but may be contrary to a provision of the Rules or the Procedures.
(3) A direction under this section may apply, adopt or incorporate (with or without modification) a relevant code of practice or standard (made in or outside Australia) as in force or existing when the direction is made or as in force or existing from time to time.
(4) A prohibition imposed by a direction under this section may be either unconditional or subject to conditions stated in the direction.
(5) A person to whom a direction under this section applies must comply with the direction.
(a) in the case of a natural person—$34 000;
(b) in the case of a body corporate—$170 000.
See Schedule 2 clause 47B, which provides for criminal penalty amounts to be adjusted every 3 years to reflect movements in the consumer price index. The adjusted amounts are published on the AER's website.
(6) A person who fails to comply with a direction under this section within the period allowed in the direction commits a further offence for every day the non-compliance continues after the end of that period and is liable to a further penalty of $17 000 for each such offence.
See Schedule 2 clause 47B, which provides for criminal penalty amounts to be adjusted every 3 years to reflect movements in the consumer price index. The adjusted amounts are published on the AER's website.
91BD—Protection from liability
A person incurs no civil monetary liability for damage, loss or injury resulting from an act or omission done or made in good faith and in compliance or purported compliance with a direction under this Subdivision.
Subdivision 3—AEMO's relationship with transmission system service providers and facility owners
91BE—Service envelope agreement between AEMO and transmission pipeline service provider
(1) The service provider for the declared transmission system must have an agreement (a service envelope agreement) with AEMO for the control, operation, safety, security and reliability of the declared transmission system.
(2) Under the service envelope agreement, the service provider makes the declared transmission system available to AEMO (and, in doing so, provides a pipeline service).
(3) The service envelope agreement must—
(a) state the capacity of the declared transmission system to be available to AEMO (or how that capacity is to be calculated) at points of injection or withdrawal under the various operating conditions that are likely to prevail from time to time; and
(b) deal with any other matters required by the Rules.
(4) The AER may, on application by AEMO or a service provider for the declared transmission system, make a determination to resolve a dispute arising from an attempt to negotiate a service envelope agreement or an amendment to a service envelope agreement.
(5) The AER may only make a determination under this section if—
(a) the AER is satisfied that the applicant has made a reasonable, but unsuccessful, attempt to negotiate the agreement or amendment; and
(b) the AER has given AEMO and all service providers for the declared transmission system that are to be affected by the determination an opportunity to make representations about the terms of the proposed determination.
(6) A determination under this section may determine the terms and conditions of the service envelope agreement or the amendment.
(7) If the AER determines the terms and conditions of a service envelope agreement or an amendment to a service envelope agreement, a service envelope agreement is taken to arise, or the service envelope agreement is taken to be amended, in accordance with the AER's determination.
(8) A determination under this section takes effect on a date specified in the determination.
(9) A determination under this section must be published on AEMO's website.
91BF—Interconnection with facilities
(1) A person must not connect a facility to the declared transmission system unless the person—
(a) has AEMO's permission to do so; or
(b) is authorised to do so by an access determination.
(2) A facility includes—
(a) a pipeline;
(aa) a blend processing facility;
(b) a storage facility;
(c) a gas fired electricity generator;
(d) any other plant or equipment that could have a material impact on the operation of the declared transmission system.
91BG—Operating agreement between AEMO and facility owner
(1) AEMO may require, as a condition of permitting the connection of a facility to the declared transmission system, that the facility owner enter into an agreement (an operating agreement) with AEMO relating to the operation of that facility.
(2) An operating agreement may deal (amongst other things) with the following:
(a) the balancing, monitoring and regulation of gas flows between the declared transmission system and the facility;
(b) the scheduling of gas flows;
(c) the maintenance of a balancing account;
(d) the provision of operational information;
(e) operating pressures;
(f) the safety, security and reliability of the declared transmission system and the facility;
(g) emergency arrangements.
(3) The AER may make a determination under this section (an operating agreement determination)—
(a) on application by AEMO or a facility owner to resolve a dispute arising from an attempt to negotiate an operating agreement or an amendment to an operating agreement; or
(b) in the course of proceedings to resolve an access dispute.
(4) The AER may only make an operating agreement determination on an application under subsection (3)(a) if—
(a) the AER is satisfied that the applicant has made a reasonable, but unsuccessful, attempt to negotiate the agreement or amendment; and
(b) the AER has given AEMO and all service providers for the declared transmission system that are to be affected by the determination an opportunity to make representations about the terms of the proposed determination.
(5) An operating agreement determination may determine the terms and conditions of the operating agreement or the amendment.
(6) If the AER determines the terms and conditions of an operating agreement or an amendment to an operating agreement, an operating agreement is taken to arise, or the operating agreement is taken to be amended, in accordance with the AER's determination.
(7) An operating agreement determination takes effect on a date specified in the determination.
(8) An operating agreement determination must be published on AEMO's website.
91BH—General principles governing determinations
(1) A determination under this Division must be compatible with the proper performance of AEMO's declared system functions.
(2) In determining a dispute about a service envelope agreement, an operating agreement, or an amendment to a service envelope agreement or operating agreement, the AER must have regard to the allocation of powers and functions between AEMO and the relevant declared transmission system operator and to the Rules so far as they are relevant to—
(a) the allocation of risk under such an agreement; or
(b) the provision of services by means of, or in connection with, the declared transmission system; or
(c) any other matter that has a bearing on the subject matter of the agreement.
(3) A determination cannot alter the allocation of risk under an existing service envelope agreement or an existing operating agreement unless AEMO agrees.
(4) The provisions applicable to the determination of an access dispute apply to a determination by the AER under this Division with the following changes:
(a) sections 163 to 166 and section 169(1)(b)(i), (iv) and (2) do not apply; and
(b) any further changes necessary to adapt those provisions to the determination of a dispute under this Division.
Subdivision 4—Declared wholesale gas market
91BI—Market participation
A person participates in a declared wholesale gas market in a registrable capacity if the person is—
(a) a service provider for the declared transmission system or for a declared distribution system; or
(b) a producer or blend processing service provider who injects covered gas into a declared transmission system or a declared distribution system; or
(c) a storage provider whose storage facility is connected to the declared transmission system or a declared distribution system; or
(d) a person who buys or sells covered gas in the declared wholesale gas market; or
(e) a person classified by the Rules as a participant in the declared wholesale gas market.
91BJ—Registration required for market participation
(1) A person must not participate in a declared wholesale gas market in a registrable capacity unless registered (or exempted from registration) in accordance with the Rules.
(2) A person may also be exempted from registration by or under jurisdictional gas legislation.
(3) A person who participates in a declared wholesale gas market in 2 or more registrable capacities must be registered (or exempted from registration) in both or all those capacities.
(4) For performing statutory functions, AEMO is not required to be registered.
91BK—Certificates of registration etc
(1) A certificate signed by an authorised officer certifying that a person named in the certificate is registered, or exempted from registration, is evidence of the registration or exemption.
(2) For this section, an authorised officer is AEMO's CEO or a person authorised by the CEO to issue certificates under this section.
Subdivision 5—Wholesale Market Procedures
91BL—Wholesale Market Procedures
AEMO may, in accordance with the Rules, make Wholesale Market Procedures.
91BM—Nature of Wholesale Market Procedures
(1) Wholesale Market Procedures are a form of statutory instrument directed at the regulation of a declared wholesale gas market.
(2) The Wholesale Market Procedures may deal with the following matters:
(b) any other matter relevant to a declared wholesale gas market on which this Law or the Rules contemplate the making of Procedures.
(3) The Wholesale Market Procedures—
(c) may confer rights or impose obligations on Registered participants, exempted participants, or other persons; and
(d) may require a Registered participant or an exempted participant to give an indemnity against injury, damage or loss arising from the participant's failure to comply with requirements imposed by the Procedures; and
(e) may confer power on AEMO to make or issue guidelines, tests, standards and other documents of an administrative nature; and
(f) may confer power on AEMO to require a person on whom a right is conferred, or an obligation imposed, under the Procedures—
(g) may exempt, or confer a power of exemption, from the application of the Procedures or specified provisions of the Procedures; and
(h) may contain provisions of a savings or transitional nature.
(4) AEMO must not, without the consent of the MCE, make Wholesale Market Procedures that confer a right or function, or impose an obligation, on the MCE or a Minister of a participating jurisdiction.
(5) The Wholesale Market Procedures cannot—
91BN—Compliance with Wholesale Market Procedures
(1) AEMO and each person to whom the Wholesale Market Procedures are applicable must comply with those Procedures.
(2) If AEMO has reasonable grounds to suspect a breach of the Wholesale Market Procedures, it must, after making such inquiries and investigation as it considers appropriate, make a decision as to whether the breach is a material breach.
(b) may direct the person suspected of the breach to rectify it or to take specified measures to ensure future compliance (or both); and
(6) AEMO must give a copy of its decision under subsection (2), its reasons for the decision and (if relevant) any direction under subsection (3)(b) to the AER.
AEMO may provide the AER with relevant information (including protected information) related to a suspected breach of the Procedures. (For disclosure of protected information, see section 91GC(2)(b).)
Subdivision 6—Ownership of gas in declared transmission system
91BO—Ownership of gas
(1) AEMO must establish rules (the ownership rules) for determining the ownership of gas in the declared transmission system and for resolving disputes about ownership.
(2) The ownership rules are to form part of the Wholesale Market Procedures.
(3) Subject to the ownership rules, gas injected into the declared transmission system remains the property of the person that injected it or, if that person was acting as an agent, that person's principal.
(4) A dispute about the ownership of gas in the declared transmission system is to be determined in accordance with the Rules.
91BP—Title to gas
A Registered participant or an exempted participant must not inject gas into, or tender gas for injection into, the declared transmission system or a declared distribution system unless—
(a) the participant has title to the gas, or authority to dispose of title to the gas; and
(b) the gas will, at the point of injection, be free from any mortgage, charge or encumbrance.
Subdivision 7—Immunity
91BQ—Immunity
(1) A protected person incurs no civil monetary liability—
(a) for failing to accept gas for injection into, or to make gas available for withdrawal from, the declared transmission system; or
(b) for failing to make the declared transmission system available to accept the injection of gas into it, or the withdrawal of gas from it; or
(c) in the case of AEMO—for failing to accept gas for injection into, or to make gas available for withdrawal from, a declared distribution system,
if the failure arises out of an accident or cause beyond the protected person's control.
(2) A protected person may, by written agreement with another person, limit or exclude the operation of subsection (1) in relation to the parties to the agreement.
(b) a service provider for the whole or part of the declared transmission system.
91BR—Immunity in dealing with an emergency
Neither AEMO nor an officer or employee of AEMO incurs any civil monetary liability for an act or omission directed at dealing with an emergency unless the act or omission is done or made in bad faith.
Division 2A—Short term trading markets
91BRA—Application of this Division
(1) This Division applies to, and in relation to, a participating jurisdiction if (and only if) the application Act of that jurisdiction, or an instrument made under that Act, declares that it does so apply.
(2) A rule or other form of subordinate legislation made for the purposes of this Division applies to and in relation to a participating jurisdiction if (and only if) this Division applies to and in relation to that jurisdiction.
91BRB—AEMO's STTM functions
(1) AEMO's STTM functions are as follows:
(a) to operate and administer a short term trading market;
(b) to make, amend or revoke Procedures governing the operation and administration of a short term trading market.
(2) AEMO may trade in covered gas to the extent necessary or desirable to provide market operator services.
(3) AEMO may, subject to the Rules, suspend a short term trading market.
Subdivision 2—Short term trading markets
91BRC—Market participation
A person participates in a short term trading market in a registrable capacity if the person is—
(a) a person who supplies covered gas to an STTM hub; or
(b) a person who withdraws covered gas from an STTM hub; or
(c) a person classified by the Rules as a participant in a short term trading market.
91BRD—Registration required for market participation
(1) A person must not participate in a short term trading market in a registrable capacity unless registered (or exempted from registration) in accordance with the Rules.
(2) A person who participates in a short term trading market in 2 or more registrable capacities must be registered (or exempted from registration) in both or all those capacities.
(3) For performing statutory functions, AEMO is not required to be registered.
91BRE—Certificates of registration etc
(1) A certificate signed by an authorised officer certifying that a person named in the certificate is registered, or exempted from registration, is evidence of the registration or exemption.
(2) For this section, an authorised officer is AEMO's CEO or a person authorised by the CEO to issue certificates under this section.
91BRF—Title to gas
An STTM trading participant must not supply gas to an STTM hub unless—
(a) the participant has title to the gas, or authority to dispose of title to the gas; and
(b) the gas will, at the point of supply, be free from any mortgage, charge or encumbrance.
91BRG—Gas supplied to STTM hub must meet quality specifications specified in the Rules
An STTM trading participant must not supply gas to an STTM hub that does not comply with the gas quality specifications specified in the Rules for that STTM hub and gas.
Subdivision 3—STTM Procedures
91BRH—STTM Procedures
AEMO may, in accordance with the Rules, make STTM Procedures.
91BRI—Nature of STTM Procedures
(1) STTM Procedures are a form of statutory instrument directed at the regulation of a short term trading market.
(2) The STTM Procedures may deal with the following matters:
(b) any other matter relevant to a short term trading market on which this Law or the Rules contemplate the making of Procedures.
(3) The STTM Procedures—
(c) may confer rights or impose obligations on STTM trading participants, exempted participants, or other persons; and
(d) may confer power on AEMO to make or issue guidelines, tests, standards and other documents of an administrative nature; and
(e) may confer power on AEMO to require a person on whom a right is conferred, or an obligation imposed, under the Procedures—
(f) may exempt, or confer a power of exemption, from the application of the Procedures or specified provisions of the Procedures; and
(4) AEMO must not, without the consent of the MCE, make STTM Procedures that confer a right or function, or impose an obligation, on the MCE or a Minister of a participating jurisdiction.
(5) The STTM Procedures cannot—
91BRJ—Compliance with STTM Procedures
(1) AEMO and each person to whom the STTM Procedures are applicable must comply with those Procedures.
(2) If AEMO has reasonable grounds to suspect a breach of the STTM Procedures, it must, after making such inquiries and investigation as it considers appropriate, make a decision as to whether the breach is a material breach.
(b) may direct the person suspected of the breach to rectify it or to take specified measures to ensure future compliance (or both); and
(6) AEMO must give a copy of its decision under subsection (2), its reasons for the decision and (if relevant) any direction under subsection (3)(b) to the AER.
AEMO may provide the AER with relevant information (including protected information) related to a suspected breach of the Procedures. (For disclosure of protected information, see section 91GC(2)(b).)
Division 2B—Gas trading exchanges
91BRK—AEMO's gas trading exchange functions
(1) AEMO's gas trading exchange functions are as follows:
(a) to establish, operate and administer 1 or more gas trading exchanges;
(b) to appoint, in accordance with the Rules, another person to operate a gas trading exchange;
(c) in relation to a gas trading exchange, to make and administer a gas trading exchange agreement for the purposes of the exchange.
(2) AEMO may trade in covered gas to the extent necessary or desirable for the efficient operation of a gas trading exchange after taking into account any provision made by or under the gas trading exchange agreement that applies in relation to the exchange.
(3) AEMO may, subject to the Rules and the relevant gas trading exchange agreement, suspend trading on a gas trading exchange.
91BRL—Gas trading exchange not to constitute a regulated gas market
A gas trading exchange is not a regulated gas market.
Division 2C—Capacity auctions for transportation services
91BRM—AEMO's capacity auction functions
(1) AEMO's capacity auction functions are as follows:
(a) to establish, operate and administer 1 or more capacity auctions;
(b) in relation to a capacity auction, to make and administer capacity auction agreements;
(c) to make, amend or revoke Procedures governing the operation and administration of a capacity auction.
(2) AEMO may, subject to the Rules and Procedures, suspend a capacity auction.
91BRN—Capacity auctions not to constitute a regulated gas market
A capacity auction is not a regulated gas market.
Division 2D—Capacity Transfer and Auction Procedures
91BRO—Making of Capacity Transfer and Auction Procedures
AEMO may, in accordance with the Rules, make Capacity Transfer and Auction Procedures.
91BRP—Nature of Capacity Transfer and Auction Procedures
(1) Capacity Transfer and Auction Procedures are a form of statutory instrument directed at—
(a) the effective operation and administration of a capacity auction in accordance with the Rules; and
(b) the effective operation and administration of transaction support arrangements.
(2) The Capacity Transfer and Auction Procedures may deal with the following matters:
(b) any other matter relevant to a capacity auction, a gas trading exchange or transaction support arrangements on which this Law or the Rules contemplate the making of Procedures.
(3) The Capacity Transfer and Auction Procedures—
(c) may confer rights or impose obligations on a transportation service provider, a transportation facility user, a capacity auction participant or a gas trading exchange member; and
(d) may confer power on AEMO to make or issue guidelines, tests, standards and other documents of an administrative nature; and
(e) may confer power on AEMO to require a person on whom a right is conferred, or an obligation imposed, under the Procedures—
(f) may exempt, or confer a power of exemption, from the application of the Procedures or specified provisions of the Procedures; and
(4) AEMO must not, without the consent of the MCE, make Capacity Transfer and Auction Procedures that confer a right or function, or impose an obligation, on the MCE or a Minister of a participating jurisdiction.
(5) The Capacity Transfer and Auction Procedures cannot—
91BRQ—Compliance with Capacity Transfer and Auction Procedures
(1) AEMO and each person to whom the Capacity Transfer and Auction Procedures are applicable must comply with those Procedures.
(2) If AEMO has reasonable grounds to suspect a breach of the Capacity Transfer and Auction Procedures, it must, after making such inquiries and investigation as it considers appropriate, make a decision as to whether the breach is a material breach.
(b) may direct the person suspected of the breach to rectify it or to take specified measures to ensure future compliance (or both); and
(6) AEMO must give a copy of its decision under subsection (2), its reasons for the decision and (if relevant) any direction under subsection (3)(b) to the AER.
(7) If AEMO decides the breach is not material, AEMO must give a copy of the decision and the reasons for it to the AER.
AEMO may provide the AER with relevant information (including protected information) related to a suspected breach of the Procedures. (For disclosure of protected information, see section 91GC(2)(b) and 91GG(1)(b).)
Division 2E—Registration in relation to transportation facility
91BRR—Registration obligation
(1) A transportation service provider for a transportation facility must, in accordance with the Rules, register—
(a) that transportation facility; and
(b) as a transportation service provider for that transportation facility.
(2) Subsection (1) does not apply if—
(a) the transportation facility or the provider is exempted from registration under that subsection by or under the Rules; or
(b) the transportation facility or the provider is exempted by the AER from registration under that subsection by or under this Law or the Rules.
(3) For performing statutory functions, AEMO is not required to be registered.
91BRS—Exemptions from obligation to register
(1) A transportation service provider (or prospective transportation service provider) for a transportation facility may request the AER to exempt the transportation service provider (or prospective transportation service provider on becoming the transportation service provider for the transportation facility) from the obligation to register—
(a) the transportation facility under section 91BRR(1)(a); or
(b) as a transportation service provider for the transportation facility under section 91BRR(1)(b).
(2) A request under subsection (1) must be made in accordance with the Rules.
(3) On receipt of a request under subsection (1), the AER may, subject to the Rules, grant the exemption.
(4) An exemption granted under subsection (3) may be subject to such terms and conditions as may be required by the Rules or as the AER considers appropriate in accordance with the Rules.
prospective transportation service provider for a transportation facility means a person who intends to own, control or operate the transportation facility.
91BRT—Certificates of registration and exemption from registration
(1) A certificate signed by an authorised officer certifying that a transportation facility described, or a transportation service provider named, in the certificate is registered, or exempt from registration, is evidence of the registration or exemption.
(2) In this section, an authorised officer is—
(a) in relation to registration, AEMO's CEO or a person authorised by the CEO to issue certificates under this section; or
(b) in relation to exemption, the AER's CEO or a person authorised by the CEO to issue certificates under this section.
Division 3—Information etc to be provided to Ministers
91C—Ministerial request
(1) The MCE or a Minister of a participating jurisdiction may ask AEMO for information, a report or other services.
(2) The request may be accompanied by a written statement of the purpose for which the information, report or other services are sought.
91CA—Compliance with request
(1) AEMO must comply with a request under this Division.
(2) However, if compliance with the request would involve disclosure of protected information, AEMO may only provide the information if its disclosure is authorised under this Law or the Rules.
The Minister of an adoptive jurisdiction may be entitled to certain protected information under section 91BB.
91CB—Quarterly report
(1) AEMO must report to the MCE in each quarter on its work under this Division for the previous quarter.
(2) The report must—
(a) summarise each request received in the relevant quarter; and
(b) state by whom each request was made.
Division 4—Gas statement of opportunities
91D—Object and content of gas statement of opportunities
(1) The purpose of the gas statement of opportunities is to provide information to assist Registered participants and other persons in making informed decisions about investment in the covered gas industry.
(2) The gas statement of opportunities must include the following:
(a) for each covered gas specified in the Rules, an assessment of—
(i) medium to long term demand (including export demand) for the gas and for pipeline services; and
(ii) supply and pipeline capacity to meet existing and foreseeable demand for the gas and pipeline services; and
(iii) likely long term production or transmission constraints;
(b) forecasts of the outlook for the covered gas industry over a 20 year planning horizon;
(c) an assessment of likely long term shortfalls in natural gas reserves;
(d) any other information required by the Rules.
91DA—AEMO's obligation in regard to gas statement of opportunities
(1) AEMO must prepare, periodically review, revise, and publish the gas statement of opportunities in accordance with the Rules.
(2) AEMO also has the following functions in relation to the gas statement of opportunities:
(a) to collect and collate GSOO information;
(b) to collect and collate other information in relation to the covered gas industry;
(c) to derive from information of the type mentioned in paragraph (a) or (b) information for inclusion in the gas statement of opportunities.
91DB—Information for the gas statement of opportunities
(1) A person who has possession or control of information in relation to the covered gas industry must give the information to AEMO for use by AEMO in the preparation, review, revision or publication of the gas statement of opportunities if the person is required to do so under the Rules.
(2) The information must be given to AEMO in accordance with the Rules.
(4) Subsection (1) does not require—
(b) a natural person to disclose information that would incriminate the person or make the person liable to a criminal penalty under the law of an Australian jurisdiction (whether or not the jurisdiction is a participating jurisdiction).
91DC—Person cannot rely on duty of confidence to avoid compliance with obligation
A person must not refuse to comply with the requirement in section 91DB on the ground of any duty of confidence.
91DD—Giving AEMO false or misleading information
A person must not give GSOO information to AEMO that the person knows is false or misleading in a material particular.
91DE—Immunity of persons giving GSOO information to AEMO
(1) A person who gives GSOO information to AEMO does not incur any civil monetary liability for an act or omission in giving that information unless the act or omission is done or made in bad faith or through negligence.
(2) The civil monetary liability for an act or omission of a kind referred to in subsection (1) done or made through negligence may not exceed the prescribed maximum amount.
(a) prescribe a maximum amount that is limited in its application to persons, events, circumstances, losses or periods specified in the Regulations;
(b) prescribe maximum amounts that vary in their application according to the persons to whom or the events, circumstances, losses or periods to which they are expressed to apply;
(4) A person mentioned in subsection (1) may enter into an agreement with another person varying or excluding the operation of a provision of this section and, to the extent of that agreement, that provision does not apply.
91DF—GSOO Procedures
AEMO may, in accordance with the Rules, make GSOO Procedures.
91DG—Nature of GSOO Procedures
(1) GSOO Procedures are a form of statutory instrument directed at the collection of information for the gas statement of opportunities.
(2) The GSOO Procedures may deal with the following matters:
(b) any other matter relevant to the gas statement of opportunities on which this Law or the Rules contemplate the making of Procedures.
(3) The GSOO Procedures—
(c) may confer rights or impose obligations; and
(d) may confer power on AEMO to make or issue guidelines, tests, standards and other documents of an administrative nature; and
(e) may confer power on AEMO to require a person to whom a right is conferred, or an obligation is imposed, under the Procedures—
(ii) to conduct, or submit to, a test designated by AEMO under the Procedures; and
(f) may exempt, or confer a power of exemption, from the application of the Procedures or specified provisions of the Procedures; and
(4) AEMO must not, without the consent of the MCE, make Procedures that confer a right or function, or impose an obligation, on the MCE or a Minister of a participating jurisdiction.
(5) The GSOO Procedures cannot—
91DH—Compliance with GSOO Procedures
(1) AEMO and each person to whom the GSOO Procedures are applicable must comply with the Procedures.
(2) If AEMO has reason to believe that a person is not complying with the GSOO Procedures, it may, by notice in writing, direct the person to comply with the relevant provisions of the GSOO Procedures.
(3) A person to whom a direction is addressed under subsection (2) must comply with the direction.
91E—AEMO fees and charges
(1) AEMO may—
(a) determine fees and charges for services provided by it under this Law, the Rules or the Procedures; and
(b) charge for, and recover, the fees and charges in accordance with this Law and the Rules.
(2) The fees and charges for a service are to be determined on a non‑profit basis that—
(a) provides for full recovery of the costs of providing the service; and
(b) does not amount to taxation; and
(c) is consistent with the requirements of the Rules.
(3) Exact equivalence is not required between the costs of providing a service and the revenue derived from providing the service in a particular accounting period if there are reasonable grounds to believe that costs will over time approximate revenue.
This section does not prevent AEMO from generating a profit from the performance of non‑statutory functions (such as the provision of consultancy services). Any such profit would not, however, be available for distribution to members.
(4) Despite the above provisions, a component of AEMO's fees and charges may, if the Rules so provide, relate to costs that are not specifically referable to services provided under this Law, the Rules or the Procedures.
As a general rule, AEMO's expenditures will be allocated to services provided to the electricity industry or the gas industry. Subsection (4) deals with costs that cannot be wholly attributed to either industry.
(5) This section does not limit AEMO's power to determine, charge for and recover fees and charges for carrying out functions conferred by jurisdictional legislation.
(6) In this section—
service includes the performance of statutory functions.