Gas Supply Act 1996

This Act is the Gas Supply Act 1996.

This Act commences on a day or days to be appointed by proclamation.

(Repealed)

The objects of this Act are as follows—

to encourage the development of a competitive market in gas, so as to promote the thermally efficient use of gas and to deliver a safe and reliable supply of gas in compliance with the principles of ecologically sustainable development contained in section 6 (2) of the Protection of the Environment Administration Act 1991,

to regulate gas reticulation and gas supply, so as to protect the interests of customers,

to facilitate the continuity of supply of natural gas to customers,

to promote the safe use of gas.

For the purpose of enabling the objects of this Act to be achieved, the Minister, the Tribunal and any review panel each have the duties set out in subsections (3)–(6).

In relation to licensed distributors involved in the reticulation of gas, the duties are as follows—

to ensure that such persons satisfy, so far as it is economical for them to do so, all reasonable demands for the conveyance of gas,

to take proper account of the business interests of such persons and the ability of such persons to finance the provision of gas reticulation services,

(Repealed)

to take proper account of the interests of gas users in respect of transportation tariffs and other terms of service.

In relation to authorised reticulators and licensed distributors involved in the distribution or reticulation of gas, the duties are as follows—

to consider the development of efficient and safe gas distribution pipelines and gas distribution systems,

to promote the efficient and safe operation of gas distribution pipelines and gas distribution systems.

(Repealed)

In relation to gas users, the duties are to promote the efficient and safe use of gas.

Nothing in this section permits or requires this Act to be construed in a way that is inconsistent with the National Gas (NSW) Law or the National Gas (NSW) Regulations or the National Energy Retail Law (NSW) or the National Energy Retail Regulations (NSW).

Nothing in subsections (2)–(6) gives rise to, or can be taken into account in, any civil cause of action.

Expressions used in this Act that are defined in the Dictionary in Schedule 3 have the meanings set out in the Dictionary.

Words and expressions used in this Act (other than distributor) have the same meaning as they have in the National Energy Retail Law (NSW) but (unless otherwise expressly provided) have that meaning only in relation to the supply of natural gas.

A person must not operate a distribution pipeline for the purpose of conveying natural gas to any other person otherwise than under the authority of an authorisation.

Maximum penalty—

5,000 penalty units, and

for a continuing offence—a further 500 penalty units for each day the offence continues.

A person does not operate a distribution pipeline for the purpose of conveying natural gas to another person merely because the person supplies natural gas to that other person by means of a distribution pipeline.

(Repealed)

Subject to any conditions imposed by or under this Act, a reticulator’s authorisation authorises its holder, and any other person specified in the authorisation, to operate the distribution pipeline so specified for the purpose of conveying natural gas to other persons.

An application for an authorisation or for the transfer of an authorisation—

must be accompanied by such fee as may be determined by the Minister, and

must contain such information as may be determined by the Minister, and

must be lodged at the office of the Tribunal.

Such an application may only be made on behalf of a person who is a body corporate.

Before determining an application for an authorisation or for the transfer of an authorisation, the Minister must cause notice of the application to be published in the Gazette and in such other manner as the Minister is satisfied is likely to bring the notice to the attention of members of the public.

The notice must indicate—

the nature of the authorisation to which the application relates, and

the identity of the proposed holder of the authorisation, and

the district in which the authorisation, if granted or transferred, would operate, and

where submissions on the application should be lodged, and

the time (being at least 40 days from the date on which the notice is first published) within which any such submissions should be lodged, and

such other matters as may be prescribed by the regulations.

The Minister must give due consideration to matters arising from any submissions under this section.

The Minister may determine an application for an authorisation by—

granting the application, or

granting the application with the modifications the Minister considers appropriate, or

refusing the application.

The Minister may determine an application for the transfer of an authorisation by—

granting the application, or

refusing the application.

When granting an application under subsection (1), with or without modifications, or subsection (1A), the Minister may impose conditions under section 11(1)(b).

An application may be refused on any of the following grounds—

that the proposed holder of the authorisation fails to satisfy such technical or prudential criteria as have been adopted by the Minister to determine whether a person is able to operate a viable business as an authorised reticulator,

such grounds as may be prescribed by the regulations,

such grounds as the Minister considers relevant, having regard to the interests of consumers and the need to promote a competitive market for natural gas, to prevent misuse of market power and to ensure the security and reliability of the New South Wales supply system for natural gas.

The Minister must endeavour to determine an application within 6 months after it is made.

Subject to the conditions imposed on it, an authorisation remains in force until it is cancelled.

An authorisation is subject to the following conditions—

the conditions imposed by this Act and the regulations,

such other conditions (not inconsistent with those imposed by this Act and the regulations) as the Minister may from time to time impose in relation to the authorisation.

Without limitation, the Minister may impose the following kinds of conditions on an authorisation—

a condition specifying the period for which the authorisation is to remain in force,

a condition requiring the holder of the authorisation to exercise its functions under this Act in accordance with specified guidelines or subject to specified restrictions, including conditions as to the district within which those functions may be exercised,

a condition requiring the holder of the authorisation to continue to satisfy such technical or prudential criteria as have been adopted by the Minister to determine whether a person is able to operate a viable business as an authorised reticulator,

a condition requiring the holder of the authorisation to maintain specified insurance cover in respect of specified risks,

a condition requiring the holder of the authorisation—

to prepare, and submit to the Minister for approval, a plan setting out (in accordance with guidelines established by the Minister) the holder’s policies, practices and procedures with respect to the conduct of its affairs under the authorisation, and

to conduct its affairs under the authorisation in accordance with the plan as so approved,

a condition requiring the holder of the authorisation to furnish to the Minister (at such times and in respect of such periods as the Minister may determine) such information as the Minister may determine to enable the Minister to ascertain whether or not the holder is complying with the conditions imposed on the authorisation by this Act or the regulations or by the Minister,

a condition requiring the holder of the authorisation to develop and implement a strategy promoting the adoption of thermally efficient appliances and efficient energy-use practices.

The Minister may not impose conditions on an authorisation with respect to the terms on which an authorised reticulator grants access to its distribution pipelines.

(Repealed)

It is a condition of a reticulator’s authorisation that—

the authorisation holder must be a member of the energy ombudsman scheme, and

the authorisation holder is bound by, and must comply with, any decision of the energy ombudsman under the scheme relating to a dispute or complaint involving the authorisation holder and a small customer.

Note.

The energy ombudsman has power to deal with disputes between retailers and customers under this Act, see sections 96A and 96B of the Electricity Supply Act 1995 and the regulations under that Act.

This section does not apply in respect of an authorised reticulator if the authorised reticulator is exempt from the requirement to be a member of the energy ombudsman scheme.

The Minister may, by order in writing, exempt an authorised reticulator from the requirement to be a member of the energy ombudsman scheme if of the opinion that the authorised reticulator is not currently engaging in any activities for which an authorisation is required.

In this section—

energy ombudsman scheme means the scheme established under section 96B of the Electricity Supply Act 1995.