Small-scale gas networks

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General information

There are regional communities in South Australia that are provided with gas through standalone networks. Most of these networks reticulate LPG and are not connected to the national gas market. One supplier is connected to the national gas market via an inset network arrangement and reticulates natural gas.

The Commission regulates small-scale gas supply services through the licensing regime established by the Gas Act 1997.

The Commission licenses all participants in the gas supply industry where those participants engage in the operation of a distribution network or gas retailing.

Licensees are required to operate in accordance with specified licence conditions set by the Commission. Small-scale licensees providing retail and distribution services have licence requirements broadly covering:

  • consumer protections – behavioural standards and minimum requirements that retailers must comply with when dealing with their customers, including reliability of supply requirements, and
  • technical requirements – such as the development of a Safety, Reliability, Maintenance and Technical Management Plan (SRMTMP), a connection policy and a metering plan (if applicable), and reporting requirements.

Customers of small-scale gas licensees are afforded similar consumer protections to customers connected to the National Gas Market. Licensees are required to adhere to the following consumer protection obligations: 

  • Customer supply contracts – requirements to develop standard terms and conditions on which a licensee will connect customers’ supply and sell and supply gas. 
  • Customer dispute resolution procedures – requirements to have procedures in place, based on AS10002-2022 – 'Guidelines for complaint management in organisations’. 
  • Supply obligations – requirements to maintain the quality of supply and minimise interruptions, provide notice for planned interruptions and connect customers within agreed timeframes. 
  • Customer service obligations – requirements to provide regular bills containing specific information, and to conduct regular meter readings. 
  • Dealing with billing disputes – requirements relating to undercharging and overcharging including minimum payment methods, offering flexible payment arrangements, and rules relating to security deposits. 
  • Disconnections and restoration of supply – obligations around disconnecting customer supply for non-payment, timeliness for restoration of supply and prohibitions on disconnection.

The Commission monitors and reports on small-scale networks’ compliance with regulatory requirements and takes enforcement action in instances of non-compliance, if necessary. 

Performance outcomes

Performance summary for 2021-2022

There are five small-scale gas network distributors and two small-scale gas network retailers licensed under the Gas Act 1997. These licensees provided services to 4,674 connections in 2021-22.

In 2021-22, one material service issue was reported by a gas licensee where gas supply was disrupted for one customer for 2.5 hours as a result of third-party damage by an excavation contractor.

Licensees reported that, as at 30 June 2022, a total of 398 customers were on flexible payment arrangements and no customers were registered as a life support customer.

Compliance summary for 2021-22

In 2021-22, no material non-compliances reported. All the non-compliances reported were assessed as low risk or administrative in nature and have minimal impact on customers. The Commission is contacting all licensees that reported a non-compliance or were assessed as having a non-compliance with regulatory requirements.

Please refer to the Bulletin no 4 – Reporting requirements for further information on the ongoing monitoring and reporting obligations. 

Historical performance outcomes 

Compliance reviews

While the Commission assesses energy entities performance against annual service standards and reliability standards each year, events may occur during the year that warrant special ad hoc reporting – referred to as Significant Performance Events.

The Commission considers the following criteria in determining whether a Significant Performance Event has occurred:

  • a significant number of customers are affected for a lengthy duration, or there is reason to believe that a significant number of customers may have been affected for a lengthy duration.
  • the event is likely to seriously impact on the licensed entity’s ability to meet one of more of its annual service standard(s) or reliability target(s).
  • the Commission needs to undertake a review to be confident that the licensed entity has complied with its obligations under the relevant industry Code(s).
  • there is strong stakeholder interest, or there is anticipated to be strong stakeholder interest.

The criteria recognise that a balance needs to be struck between reporting on every event and the resources it entails, and meeting stakeholder expectations on the provision of information in such situations.

To date, the Commission has not published any significant event reports in respect of the performance of off-grid gas networks.