Regulatory Arrangements for Reticulated LPG Networks
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.
Until recently, the supply of LPG to customers via reticulated distribution networks in South Australia was relatively limited, generally being confined to residential and small business customers in a small number of non-metropolitan areas of South Australia. However, there is an increasing interest in the establishment of reticulated LPG networks, particularly in new housing and small industrial developments in areas beyond the reticulated natural gas network operated by Envestra Ltd.
The licensing provisions of the Act are typically applied to natural gas networks while reticulated LPG networks in South Australia operate under a variety of licensing and exemption arrangements under the Act. Given the potential growth in both the number of reticulated LPG networks and the number of customers serviced by such networks, the Commission believes it is necessary to clarify the application of these provisions to such networks.
A paper has been developed seeking feedback from interested parties on the Commission's initial thinking on such matters. Submissions are due by 3 October 2008.
Publications
The Commission received 5 submissions in response to the Issues Paper it released in August 2008 on the regulatory arrangements to apply to reticulated LPG networks in South Australia.
Submissions
Following consideration of the submissions, the Commission has made a Draft Decision on the regulatory arrangements to apply . In summary, the Commission has decided that a licensing regime for reticulated LPG networks be established so that distributors and retailers of LPG are licensed under the Gas Act 1997 (SA). The reasons for the Commission's decision are set out in detail in the Draft Decision, along with draft versions of the proposed LPG retail and distribution licences.
The Commission welcomes any comments on the Draft Decision and the draft licences from interested parties. Written submissions must be provided by Friday 20 November 2009. The Commission will consider all submissions received with a view to making its Final Decision in December 2009.
Publications
The Commission received one submission in response to the Draft Decision paper it released in October 2009 on the regulatory arrangements to apply to reticulated LPG networks in South Australia.
Submissions
Since the release of the Draft Decision and the provision of submissions in response to that paper, a greater degree of certainty has arisen with respect to the transfer of natural gas regulatory functions through the processes of the National Energy Customer Framework (NECF).
While the NECF will not deal with LPG, the Commission understands that the South Australian Government will be reviewing 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 NECF.
As a result, the Commission has decided to suspend its review of the regulatory arrangements to apply to reticulated LPG networks until such time as the outcomes of the Government’s review of the Gas Act are known.
