Statutes Amendment (National Energy Laws) (Gas Pipelines) Bill 2022 (SA)

South Australia Statutes Amendment (National Energy Laws) (Gas Pipelines) Bill 2022 A Bill For An Act to amend the National Electricity (South Australia) Act 1996, the National Energy Retail Law (South Australia) Act 2011 and the National Gas (South Australia) Act 2008.

Contents Part 1—Preliminary 1 Short title 2 Commencement 3 Amendment provisions Part 2—Amendment of National Electricity Law 4 Amendment of section 2—Definitions 5 Amendment of section 16—Manner in which AER performs AER economic regulatory functions or powers Part 3—Amendment of National Energy Retail Law 6 Amendment of section 2—Interpretation 7 Amendment of section 88—Requirement for authorisation or exemption 8 Amendment of section 137—RoLR notice—direction for gas Part 4—Amendment of National Gas (South Australia) Act 2008 9 Amendment of section 9—Interpretation of some expressions in National Gas (South Australia) Law and National Gas (South Australia) Regulations 10 Amendment of section 14—Conferral of powers on Commonwealth Minister and Commonwealth bodies to act in this State 11 Repeal of section 18 Part 5—Amendment of National Gas Law 12 Amendment of section 2—Definitions 13 Amendment of section 3—Meaning of civil penalty provision 14 Amendment of section 4—Meaning of conduct provision 15 Amendment of section 5—Meaning of prospective user 16 Amendment of section 8—Meaning of service provider 17 Insertion of section 8AB 8AB Meaning of small shipper 18 Amendment of section 8A—Nominated distributors 19 Amendment of section 9—Passive owners of scheme pipelines deemed to provide or intend to provide pipeline services 20 Amendment of section 13—Pipeline classification criterion 21 Repeal of sections 14 and 15 22 Amendment of section 16—Form of regulation factors 23 Amendment of section 17—Effect of separate and consolidated access arrangements in certain cases 24 Substitution of sections 18 and 19 18 Certain extensions to, or expansion of the capacity of, pipelines to be taken to be part of a scheme pipeline 19 Expansions of the capacity of non‑scheme pipelines to be taken to be part of non‑scheme pipeline 25 Amendment of section 22—Ministers of participating jurisdictions 26 Amendment of heading to Chapter 1, Part 3, Division 2—Revenue and pricing principles 27 Amendment of section 24—Revenue and pricing principles 28 Amendment of section 27—Functions and powers of the AER 29 Amendment of section 28—Manner in which AER must perform or exercise AER economic regulatory functions or powers 30 Amendment of section 30C—Rate of return instrument is binding on AER and covered pipeline service providers 31 Amendment of section 30E—Content of rate of return instrument 32 Amendment of section 30Q—Application of instrument 33 Amendment of section 43—Definitions 34 Amendment of section 44—Meaning of contributing service 35 Amendment of section 45—Meaning of general regulatory information order 36 Amendment of section 46—Meaning of regulatory information notice 37 Amendment of section 48—Service and making of regulatory information instruments 38 Amendment of section 49—Additional matters to be considered for related provider regulatory information instruments 39 Amendment of section 52—Opportunity to be heard before regulatory information notice is served 40 Amendment of section 53—Form and content of regulatory information instrument 41 Amendment of section 54—Further provision about the information that may be described in a regulatory information instrument 42 Amendment of section 59—Assumptions where there is non-compliance with regulatory information instrument 43 Insertion of Chapter 2, Part 1, Division 4A Division 4A—Monitoring service providers 63A AER must monitor service providers' behaviour 63B AER must report to MCE 44 Amendment of heading to Chapter 2, Part 1, Division 5—Service provider performance reports 45 Insertion of Chapter 2, Part 1, Division 5A Division 5A—Compliance and performance 64A References in this Division to service providers 64B Compliance audits by AER 64C Compliance audits by service providers 64D Carrying out of compliance audits 64E Cost of compliance audits 64F AER Compliance Procedures and Guidelines 46 Substitution of section 83A 83A Information and transparency requirements relating to compression service facilities and storage facilities 83AA Publication of information relating to compression service facilities and storage facilities 47 Repeal of section 88 48 Repeal of Chapter 2, Part 4 49 Amendment of section 91BH—General principles governing determinations 50 Amendment of section 91KA—Supply interruption or disconnection in compliance with AEMO's direction 51 Amendment of section 91LA—Retail market participation 52 Substitution of Chapter 3 Chapter 3—Regulatory framework for pipelines Part 1—Scheme pipeline determinations and scheme pipeline elections Division 1—Scheme pipeline determinations 92 AER may make scheme pipeline determination 93 Requirements for making, or not making, a scheme pipeline determination 94 Effect of scheme pipeline determination Division 2—Scheme pipeline elections 95 Scheme pipeline elections 96 Effect of scheme pipeline elections Part 2—Scheme pipeline revocation determinations 97 AER may make scheme pipeline revocation determination 98 Requirements for making, or not making, a scheme pipeline revocation determination 99 Effect of scheme pipeline revocation determination Part 3—Greenfields incentive determinations and greenfields price protection determinations Division 1—Greenfields incentive determinations 100 AER may make greenfields incentive determination 101 Requirements for making, or not making, a greenfields incentive determination 102 Effect of greenfields incentive determination 103 Requirement for conformity between pipeline description and pipeline as constructed 104 Power of AER to amend pipeline description Division 2—Early termination of greenfields incentive determination 105 Greenfields incentive determination may lapse 106 Revocation by consent 107 Revocation for misrepresentation 108 Exhaustive provision for termination of greenfields incentive determination Division 3—Greenfields price protection determinations 109 AER may make greenfields price protection determination 110 Requirements for making, or not making, a greenfields price protection determination 111 Effect of greenfields price protection determination Part 4—Principles governing the making of particular determinations 112 Principles governing the making of particular determinations Part 5—Access arrangements for scheme pipelines Division 1—Submissions generally 113 Submission of access arrangement or revisions to applicable access arrangement Division 2—Provisions relating to applicable access arrangements 114 Protection of certain pre-existing contractual rights 115 Service provider may enter into agreement for access different from applicable access arrangement 116 Applicable access arrangements continue to apply regardless of who provides pipeline service Part 6—Classification and reclassification of pipelines Division 1—Classification of pipelines 117 Application for classification of pipeline Division 2—Reclassification of pipelines 118 Reclassification of pipelines Division 3—Provisions relating to classification and reclassification decisions 119 Requirements for making classification or reclassification decisions 120 Effect of classification decision or reclassification decision Part 7—AER reviews into designated pipelines 121 AER reviews 53 Amendment of heading to Chapter 4 54 Insertion of Chapter 4 Part A1 Part A1—Preliminary 130 Application of this Chapter 55 Amendment of heading to Chapter 4, Part 1 56 Amendment of section 131—Service provider must be legal entity of a specified kind to provide pipeline services by covered pipeline 57 Repeal of section 132 58 Amendment of section 133—Preventing or hindering access 59 Repeal of section 134 60 Substitution of section 135 135 Service provider must comply with queuing requirements 61 Substitution of section 136 136 Compliance with pipeline interconnection principles 136A Prohibition against increasing charges to subsidise particular development 136B Prohibition on bundling of services 136C Service providers must publish prescribed transparency information 62 Amendment of section 137—Definitions 63 Amendment of section 138—Meaning of marketing staff 64 Amendment of section 139—Carrying on of related businesses prohibited 65 Amendment of section 140—Marketing staff and the taking part in related businesses 66 Amendment of section 141—Accounts that must be prepared, maintained and kept 67 Amendment of section 143—AER ring fencing determinations 68 Amendment of section 144—AER to have regard to likely compliance costs of additional ring fencing requirements 69 Amendment of section 145—Types of ring fencing requirements that may be specified in an AER ring fencing determination 70 Repeal of Chapter 4, Part 2, Division 4 71 Redesignation of Chapter 4, Part 2, Division 5 72 Amendment of section 147—Service provider must not enter into or give effect to associate contracts that have anti-competitive effect 73 Amendment of section 148—Service provider must not enter into or give effect to associate contracts inconsistent with competitive parity rule 74 Insertion of Chapter 4, Part 2, Division 5 and Chapter 4, Parts 3 and 4 Division 5—Exemptions from particular requirements 148A Exemptions from particular requirements Part 3—Negotiation of access 148B Definition 148C Access proposals 148D Duty to negotiate in good faith Part 4—AER reviews about application of this Chapter 148E AER reviews about application of this Chapter 75 Substitution of Chapters 5 to 6A Chapter 5—Access disputes Part 1—Interpretation and application 149 Definitions 150 Application of this Chapter to disputes arising under the Rules 151 Chapter does not limit how disputes about access may be raised or dealt with Part 2—Notice of access dispute and other provisions Division 1—Notice of access dispute 152 Notice of access dispute 153 Withdrawal of notice Division 2—Parties to an access dispute 154 Parties to an access dispute Part 3—Alternative dispute resolution for access disputes Division 1—Alternative dispute resolution for scheme pipeline access disputes 155 Dispute resolution body may require parties to engage in alternative dispute resolution Division 2—Mediation of access disputes involving small shippers 156 Small shipper may elect to have access dispute mediated 157 Appointment of mediator 158 Party's lawyer may be present at mediation Part 4—Arbitration of non‑scheme pipeline access disputes 159 Reference of non‑scheme pipeline access dispute to arbitration 160 Appointment of arbitrator Part 5—Access determination Division 1—Determination of access disputes generally 161 Determination of access dispute 162 Matters to be taken into account for access disputes 163 Restrictions on access determinations 164 Access determinations and part contributions of capital to fund installations or the construction of new facilities Division 2—Particular provisions relating to scheme pipeline access disputes 165 Access determination must give effect to applicable access arrangement 166 Rules may allow determination that varies applicable access arrangement for installation of a new facility Part 6—Variation of access determinations 167 Variation of access determination—scheme pipeline disputes 168 Variation of access determination—non‑scheme pipeline disputes Part 7—Termination of access dispute 169 Relevant adjudicator may terminate access dispute in particular circumstances Part 8—Compliance with access determinations 170 Compliance with access determination 171 Subsequent service providers bound by access determinations Part 9—Access dispute hearing procedure 172 Part applies subject to any modifications prescribed by the Regulations 173 Fast track resolution process—scheme pipeline access disputes 174 Hearing to be in private 175 Right to representation 176 Procedure of relevant adjudicator 177 Particular powers of relevant adjudicator in a hearing 178 Role of a dispute resolution expert 179 Disclosure of information 180 Power to take evidence on oath or affirmation 181 Failing to attend as a witness 182 Failing to answer questions etc 183 Intimidation etc 184 Particular powers of a relevant adjudicator in a hearing Part 10—Costs Division 1—Scheme pipeline access disputes 185 Costs—scheme pipeline access disputes 186 Outstanding costs are a debt due to party awarded the costs—scheme pipelines 187 Regulations about the costs to be paid by parties to access dispute—scheme pipelines Division 2—Non‑scheme pipeline disputes 188 Costs of arbitration of non‑scheme pipeline disputes Division 3—Mediation of access disputes involving small shippers 189 Costs of mediation of access disputes involving small shippers Part 11—Joint access dispute hearings—scheme pipeline disputes 190 Definition 191 Joint dispute hearing 192 Consulting the parties 193 Constitution and procedure of dispute resolution body for joint dispute hearings 194 Record of proceedings etc Part 12—Miscellaneous matters 195 Correction of access determinations for clerical mistakes etc 196 User's existing capacity rights during an access dispute 76 Amendment of section 231—AER proceedings for breaches of this Law, Regulations or the Rules that are not offences 77 Amendment of section 271—Enforcement of access determinations 78 Amendment of section 292—AEMC must take into account form of regulation factors in certain cases 79 Amendment of section 293—AEMC must take into account revenue and pricing principles in certain cases 80 Insertion of section 294FB 294FB South Australian Minister to make initial Rules relating to pipeline regulation 81 Amendment of section 294G—South Australian Minister may make Rules on recommendation of MCE and Energy Security Board 82 Amendment of section 324—Authorised disclosure of information given to the AER in confidence 83 Repeal of Chapter 10, Part 1 84 Substitution of Chapter 10, Part 2, Division 2 Division 2—Disclosure of confidential information held by AEMC 330 Confidentiality of information 85 Amendment of section 332—Failure to make a decision under this Law or the Rules within time does not invalidate the decision 86 Substitution of section 333 333 Withdrawal of applications relating to particular determinations or classification 87 Repeal of sections 334 and 335 88 Substitution of Schedule 1 Schedule 1—Subject matter for the National Gas Rules 89 Amendment of Schedule 2—Miscellaneous provisions relating to interpretation 90 Amendment of Schedule 3—Savings and transitionals