The AER approves sub-clause 12.2. Sub-clause 12.2 provides that for the purposes of sub-clause 12.1, gas delivered must have a temperature of at least 2 degrees Celsius.
Envestra submitted that its network has been designed and built to accept gas at a temperature of higher than 2 degrees Celsius. Envestra stated that it is critical for the safe operation of the network that gas is injected at a safe temperature.
It is important to the integrity and efficient operation of Envestra's network that gas that has the potential of causing harm to the network is not injected into the network. Envestra has a legitimate interest in seeking to ensure that this does not happen. The AER considers that, to the extent that there is material that could harm Envestra's network, it is appropriate for Envestra to set specifications that exclude such material.
AGL submits that the ability of Network Users to control gas temperatures is limited to what is contained in the Specifications. Upstream gas agreements require gas to meet the Specifications but Network Users are unable to enforce higher standards. For this reason AGL submits that it is unreasonable to include a term requiring Network Users to maintain a particular gas delivery temperature.
The AER considers that Envestra is best placed to understand the technical parameters of its network and when the network may suffer harm. AS 4564 does not set a minimum safe temperature. To the extent that the network may be harmed by gas at or below a particular temperature, it is reasonable to specify this as a specification. This is in the long term interests of consumers with respect to price, reliability and security of supply. Damage to the network would lead to additional repair costs and also interruption to supply.
Sub-clause 13.1 provides that a Network user will ensure that gas delivered at any User Receipt Point by or for the account of the Network user is delivered at a pressure agreed in writing between Envestra and the Network User or as specified from time to time by Envestra by notice given to the Network User.
AGL submitted that Envestra should not be able to unilaterally change the receipt pressure, particularly given that AGL and the customer will have agreed upon the Receipt Point Pressure at the meter. In AGL's opinion, Envestra should have to notify a retailer of the intent to amend the Receipt Point Pressure at the meter. That change should only occur once the retailer has had the opportunity to engage with the customer. 993
The AER considers that it is important that Envestra’s network is operated in a way that prevents damage to the network. As the owner and operator of the Network, Envestra is best placed to understand its limitations.
Retailers can manage any potential changes in Envestra’s specified pressure through their contracts with upstream suppliers.
Further, for the reasons discussed under 'Specifications' the AER considers that this sub-clause is reasonable and consistent with the NGO.
The AER considers that this clause is consistent with the NGO because it promotes the efficient operation of the Network.
The AER approves sub-clause 19.2 and Envestra's revisions relating to the provision of full services.
The AER does not approve sub-clause 19.3. The AER proposes to delete sub-clause 19.3 to make Envestra's access arrangement acceptable.
Sub-clause 19.2 provides for the payment of charges for ancillary reference services. Sub-clause 19.3 provides for payment for ancillary reference services where a Network User requests the service and Envestra is unable to provide it as a result of acts or omissions by the Network User or its customer.
Envestra adopted some of the AER's required revisions and has made further revisions. Envestra's revisions relate to the provision of the full service and the non–completion of ancillary services.
Provision of the full service
Revision 12.12 in the AER's draft decision required Envestra to amend sub-clause 19.2 by inserting the line 'after Envestra has provided the requested Ancillary Reference Service'.994
Envestra submitted that the attachment to the Tariff Schedules, located in Annexure C, already makes it clear that Envestra is not entitled to charge for Ancillary Reference Services until it has completed the requested service.995 The relevant passage states that 'the Ancillary Service Charge to be included in the statement of charges for a given Billing Period is the Ancillary Service Charges for each Ancillary Service where the service request was completed during that Billing Period in respect of any User DP'.996
The AER considers that this provision has the same effect as the AER's proposed amendment. Accordingly, the AER approves Envestra's proposed sub-clause 19.2.
Non completion of ancillary services
The AER's revision also required the insertion of an additional paragraph specifying that Envestra could charge on a pro rata basis if it was unable to fully provide the service because of an act or omission by the Network User. Envestra has proposed a broader alternative to the amendments required by the AER. In particular, Envestra has extended its coverage to include an act or omission of the Network User's customer.
AGL submitted that Envestra's proposal will allow it to charge when it is unable to obtain access. This amounts to a 'no access' charge.997
In its revised proposal, Envestra submitted that the AER's required amendment fails to have the intended effect because it is not possible to partially provide an ancillary service.998 Envestra gave the example that if it was requested to provide a meter reading but was unable to do so because the customer had padlocked the gate, it would not have provided any part of the requested service. However, it would have incurred the costs of attempting to do so.
Envestra submitted that the AER's required approach will not work because it is not possible to partially provide an ancillary service. Accordingly, any charge will not be for the ancillary service. Rather, it will be, as AGL suggests, a charge for the customer's non availability. The AER considers it not appropriate to apply such a charge under the terms and conditions.
In considering both AGL and Envestra's submissions, it is clear that where an ancillary service cannot be completed, there will have been no ancillary service provided999 and no actual work undertaken.1000 The AER considers that it is not consistent with the NGO to permit charging for a service that has not been provided, or even partially provided. Such a charge is not a charge for an ancillary reference service.
