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 (Critical Contingency Management) Regulations 2008. These regulations are made on the recommendation of the Minister of Energy and Resources (the Minister) to give effect to a recommendation made by the Gas Industry Company Limited (GIC) to the Minister in July 2013.
To the extent that GIC's recommendation proposes amendments for the purpose of section 43F(2)(a), (b), and (d) of the Gas Act 1992 (which authorises regulations to be made relating to wholesale markets for, and processing facilities, transmission, and distribution of, gas), section 43J(1)(b)(ii) of that Act requires that these regulations implement the effect of GIC's recommendation and do not differ from that recommendation in any material way (for example, other than in matters of drafting style or minor detail).
The effect of these regulations is—
to change the criteria for appointing the critical contingency operator (the CCO) (see amendments to regulation 6):
to expand the information that various industry participants must provide to the CCO (see amendments to regulations 38 and 39 and new regulations 38A, 40, and 40A):
to adjust the curtailment arrangements, including—
to change the definitions and boundaries of the curtailment bands (see new Schedules 2 and 3):
to clarify the order and priority of restoration of supply (see new Schedule 2, clause 4):
to change the designations that a consumer may apply for to modify the effect of the curtailment arrangements (compare existing regulations 44 and 45 with new regulations 46A to 46D and 57A, and see also the transitional arrangements in new regulations 86 and 87):
to change the application process for designations (see new regulations 46E to 46N):
to ensure greater disclosure to consumers of information about these regulations, curtailment arrangements, and critical contingencies (see new regulations 43, 44, and 53(1)(db)):
to clarify matters relating to the identification of regional critical contingencies (see new regulations 45 and 52A):
to improve information flow in the event of a critical contingency (see new regulation 54A and new Schedule 5):
to improve the process for identifying gas usage that is contrary to curtailment directions (see new regulation 66A):
to expand the role of the CCO during a critical contingency, including enabling the CCO to direct a transmission system owner to reconfigure the transmission system if the CCO considers that this would contribute to the effective management of critical gas outages and other security of supply contingencies without compromising long-term security of supply (see amendments to regulation 53):
to adjust the contents of the performance report that the CCO must publish after the termination of a critical contingency, to require the CCO to consult on the draft report (see amendments to regulation 65), and to enable the industry body to audit the report (see new regulation 65A):
to create 2 new offences as follows:
for consumers that provide false or misleading information to the industry body or the CCO (new regulation 82A):
for consumers (other than industry participants) that fail to comply with a direction given during a critical contingency (new regulation 82B), subject to a necessity defence:
to make minor and technical amendments.
Date of notification in Gazette: 12 December 2013.
These regulations are administered by the Ministry of Business, Innovation, and Employment.