The Australian Energy Regulator (AER) has published its final decision to grant exemptions to Jemena Pipeline Businesses from ring-fencing obligations under section 140 of the National Gas Law (NGL) subject to a number of conditions.
On 30 August 2024, Jemena submitted an application on behalf of separate Jemena pipeline entities seeking exemption from obligations under section 140 of the NGL. Section 140 prohibits the sharing of marketing staff between service providers and related businesses.
This exemption means that:
- Jemena Pipeline Businesses’ marketing staff may be employees, agents or contractors of the related business of the Phillip Creek Compressor Station (PCCS); and
- Jemena Pipeline Businesses’ employees, agents or contractors may be marketing staff of PCCS.
Under the National Gas Rules, we may impose conditions on the exemption. Following stakeholder consultation, we have amended the conditions imposed.
The purpose of these conditions is to increase transparency, information symmetry and help the AER to monitor changes in circumstance to determine if a re-assessment to the exemption may be required.
These conditions are in addition to Jemena’s obligation under the National Gas Rules to notify the AER, without delay, if any of the Jemena Pipeline Businesses no longer qualifies for the exemption.
Background
The ring-fencing framework set out in Part 2 of Chapter 4 of the National Gas Law provides for the specific obligations applicable to gas pipeline service providers. The provisions ensure that related businesses do not gain a competitive advantage by virtue of their common ownership or operation with pipelines.
Service providers may apply to the AER for an exemption from the ring-fencing provisions under rule 34 of the National Gas Rules.
The AER has published a Compliance bulletin – new obligations on gas pipeline, compression and storage service providers and a Gas ring-fencing decision guide.