This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 1 March 2014, amend the Gas Governance (Compliance) Regulations 2008 (the principal regulations). The main change made by these regulations is to the arrangements for reporting breaches, by industry participants, of the Gas (Downstream Reconciliation) Rules 2008, the Gas Governance (Critical Contingency Management) Regulations 2008, the Gas (Processing Facilities Information Disclosure) Rules 2008, and the Gas (Switching Arrangements) Rules 2008.
Currently, regulation 11 of the principal regulations requires the registry operator, the allocation agent, and the critical contingency operator to report breaches by other participants by lodging a breach notice with the market administrator. If the market administrator receives a breach notice, it must determine whether the alleged breach raises a material issue and may attempt to resolve the matter with the agreement of the parties or may refer the matter to an investigator. New regulation 11A is inserted to create an exception to mandatory reporting of certain rule breaches where the person required to report considers, on the basis of information known to the person, that there is no likelihood that the market administrator would find that the alleged breach raises a material issue. The market administrator may publish guidelines on how it will determine materiality (new regulation 19A).
If a person, in reliance on new regulation 11A, does not lodge a breach notice for an alleged breach, the person is still required to report the alleged breach by way of a monthly report to the market administrator, and new regulation 11A does not prevent another person or the industry body from lodging a breach notice under regulation 9 or 10 in respect of the alleged breach.
In addition, these regulations—
remove consumers from the definition of participant (because section 43X of the Gas Act 1992 limits the jurisdiction of the Rulings Panel to allegations of breaches by industry participants):
make various other changes to processes:
make a number of minor and technical amendments.
Date of notification in Gazette: 12 December 2013.
These regulations are administered by the Ministry of Business, Innovation, and Employment.