icon-gas Regulatory arrangements for reticulated LPG networks

  • Project Released: 28 Aug 2008
  • Project Closes: 04 Apr 2013
  • Contact: Julie Dixon

Overview

The Essential Services Commission of South Australia (the Commission) is the licensing authority for the purposes of the Gas Act 1997 SA (the Act), a role which it assumed in July 2003. The Commission has decided to undertake a review of how the licensing provisions of the Act apply to reticulated LPG networks in South Australia with a view to determining if the current exemption regime should remain, or whether a licensing regime should be implemented as is envisaged under the Act.

Status

Current status is Final

  • Initiate
  • Submissions
  • Draft
  • Submissions
  • Further Info
  • Submissions
  • Final

Final

In May 2010, the Commission decided to suspend its review of the regulatory arrangements to apply to reticulated LPG networks. This decision was made as, around this time, the South Australian Government commenced a review of the Gas Act 1997 to determine the form of the regulatory framework to apply to types of gas other than natural gas following the commencement of the National Energy Customer Framework in South Australia.

A Further Draft Decision was issued in October 2012 setting out the reasons for the Commission’s decisions in respect of the future licensing arrangements to apply to reticulated LPG networks in South Australia having regard to the Government’s decision that LPG will continue to be regulated by the Commission under the Gas Act.

Submissions to the Further Draft Decision have been received and the Commission has now issued its Final Decision.

  The Final Decision of the Commission is:

  • Distributors and retailers of reticulated LPG in SA will need to be licensed under the Gas Act unless it can be demonstrated that it would be appropriate to grant such entities an exemption from the requirement to be licensed.
  • LPG retail and distribution licences will be issued containing mandatory licence conditions.
  • LPG licensees will be required to comply with a Reticulated LPG Industry Code which contains modified versions of key provisions of state-based or national consumer protection regulatory instruments.
  • LPG retailer will be required to provide a written disclosure statement to customers at the time they enter into a contract, publish LPG price fact sheets on their website and provide such fact sheets to the Commission, including variations to prices as and when they occur.
  • Entities currently providing reticulated LPG services will be required to apply to the Commission for the licence or licences relevant to their operations.  Applications should be received by 31 May 2013.

Publications