Market Operator Service costs are incurred by a Short Term Trading Market pipeline operator in balancing positive or negative pipeline deviations at a trading hub at the end of each gas day.
The National Gas Rules allow a pipeline operator to recover Market Operator Service allocation costs by providing the Australian Energy Market Operator with a tax invoice of those costs incurred during that financial year. After a short period of consultation, AEMO provides the invoices to the AER in order for us to determine the amount payable to each pipeline operator.
In accordance with rule 425 of the National Gas Rules, we reviewed the costs specified in each tax invoice and consider that the costs claimed have been incurred for Market Operator Service allocation purposes and are reasonable. Therefore, we determine the amount specified in each tax invoice to be the amount payable to each pipeline operator.