Gas Overview
The Essential Services Commission is the economic regulator for the retail element of the gas supply industry in South Australia, as well as being responsible for licensing of distribution and retail market administration functions.
Regulatory Framework
The Essential Services Commission Act 2002, together with the Gas Act 1997 and regulations, establishes the Essential Services Commission of South Australia (the Commission) with broad regulatory powers in relation to regulated industries. Those powers include the ability to make price determinations, rules and guidelines, and to undertake performance monitoring. This provides the basis for regulation of the gas supply industry in South Australia.
Major features of the regulatory regime include:
Establishment of the Essential Services Commission, with specified regulatory powers in relation to the gas supply industry, and with significant independence from Government. The Commission is established as a general regulator, to enable other industries to be referred to it in the future as appropriate.
The principal functions and powers of the Commission in relation to the gas supply industry include:
- making price determinations, limited to price determinations in relation to the standing contract prices which may be charged to small customers by Origin Energy Pty Ltd and for retail market administrator services provided by Australian Energy Market Operator (AEMO);
- administering the licensing of gas entities (distribution, retail and market administrator);
- monitoring the performance of licensed entities (eg, as part of ensuring compliance with licence conditions) and report on such performance;
- making industry codes (such as the Energy Retail Code and the Gas Distribution Code) regulating the behavior of licensed entities.
The Energy Industry Ombudsman scheme (EIO scheme) has also been established to provide customers of licensed distribution and retail businesses with an alternative dispute resolution mechanism.
