On 25 July 2012 the AER released its final decison on the ring the ring fencing exemption application from the Meridian SeamGas Joint Venture and WestSide Corporation (the applicants). In the application (dated 21 February 2012), the applicants sought exemptions from the minimum ring fencing requirements under ss. 139-141 of the National Gas Law (NGL).
The criteria for granting exemptions for the ring fencing requirements are set out in r. 31 of the NGL. An essential criteria for exemption is that the cost of compliance must outweigh the public benefit resulting from compliance.
In this final decision, the AER has decided to grant the applicants exemptions from the ring fencing obligations under ss. 139 and140 of the NGL. However, the AER has decided to not grant exemption from the account keeping requirements under s. 141 of the NGL.