Epic Energy (Epic) has paid an infringement notice of $20,000 for submitting incorrect pipeline data to the Australian Energy Market Operator (AEMO) following action by the Australian Energy Regulator (AER).
Epic owns and operates the Moomba to Adelaide pipeline (MAP), which provides gas to the Adelaide Short Term Trading Market (STTM). The Adelaide STTM commenced on September 2010. Epic provided incorrect data to AEMO on the amount of gas delivered through the MAP on 13 days over June and July 2013.
The incorrect data resulted from a faulty meter and a lack of appropriate systems to alert Epic when incorrect flows were being recorded. Epic experienced an identical issue in 2012 and in response, it advised the AER that it had initiated a change control process to put in place alarms to identify when erroneous data might be generated. Later in 2012, Epic told the AER the alarms had been implemented.
Epic’s ownership changed in 2013 as part of an acquisition of pipeline assets by the APA Group and a subsequent divestment of the Epic business which operates the MAP pipeline.
Following the recent errors in 2013, the new management of Epic informed the AER that the alarms had not in fact been implemented. Epic has since told the AER it will now implement alarms to its systems.
The AER believes the recent errors would likely not have occurred if Epic had implemented the alarms in 2012.
“The AER expects participants to address system issues when they are identified. This is of particular importance when system errors can impact on prices in the markets,” AER Chairman Andrew Reeves said.
“It appears the previous owners of Epic incorrectly advised the AER that alarms had been implemented.”
AEMO uses the data provided by Epic and other pipeline operators to calculate prices in the STTM. Because the data were incorrect, the prices were also incorrect. Such events may adversely affect participants in the market and reduce confidence and participation in the market.
Rule 369 of the National Gas Rules requires Epic to submit information and data to AEMO, and to maintain the equipment from which that information and data is derived in accordance with good gas industry practice. The AER can issue an infringement notice when it has reason to believe the rule has been breached. The payment of an infringement notice penalty is not an admission of a contravention of the National Gas Rules.
In a separate matter, Epic paid an infringement notice on 18 June 2012 for a breach of rule 369 of the National Gas Rules relating to conduct between October 2010 and November 2011.
Epic’s ownership and management has changed in the time between the first and second infringement notices.