The Australian Energy Regulator (AER) has today released its seventh compliance bulletin. This compliance bulletin relates to information and data requirements in the Short Term Trading Market for gas as set out under Part 20 of the National Gas Rules (Gas Rules).
The STTM is a market for the supply of natural gas. There are presently three geographically separate markets centred around gas hubs in Adelaide, Brisbane and Sydney. The STTM is operated and administered by the Australina Energy Market Operator (AEMO ). STTM market outcomes are a product of the information and data provided by businesses, including pipeline operators, to AEMO which then operates a scheduling and pricing algorithm and determines prices and payments.
The AER is concerned about the continuing high number of data failures by STTM facility operators. These failures can seriously impact on the efficiency of the STTM and in some cases have had adverse financial outcomes on trading participants.
The AER’s strategy to date has been focussed on industry engagement to promote compliance. However, given continuing failures, STTM facility operators are now on notice that in future if the AER believes that a participant has failed to provide STTM facility data consistent with the Gas Rules, the AER will consider issuing infringement notices with associated penalties and/or seek court based orders and sanctions.
The AER considers that this approach will act as a deterrent to future non-compliance.