Envestra's access arrangement proposal sets out terms and conditions that are not directly related to the nature or level of tariffs paid by users, but which are important to the relationship between the network service provider and users. These are referred to by the AER as non-tariff components of the access arrangement.
This attachment sets out the AER’s consideration of the non-tariff components of Envestra’s revised access arrangement proposal. These include Envestra’s proposed capacity trading requirements,966 queuing policy,967 extension and expansion requirements968, and terms and conditions on which the reference service will be provided.
Final decision
The AER does not approve Envestra's proposed non-tariff components. In particular, the AER does not approve the following:
Envestra's terms and conditions in Annexure F to its revised access arrangement proposal.
Envestra's Network Extensions and Expansions under clause 8 of its revised access arrangement proposal.
New clause 9g) of Envestra's network user policy in clause 6.4 of its revised access arrangement proposal.
Envestra's revision commencement date
The AER approves the following non-tariff components:
Envestra's Capacity trading procedures under clause 7 of its revised access arrangement proposal.
Envestra's draft access arrangement insofar as it does not include any queuing arrangements.
Envestra's terms and conditions for changes to receipt or delivery points in clause 7.3 of its revised access arrangement proposal.
Review submission date
Terms and conditions
Final decision
The AER does not approve Envestra's proposed terms and conditions. In particular, the AER does not approve the inclusion of the following terms:
19.3—Service Attempt
26.3—Right to suspend services
The AER proposes amendments to the following terms to make Envestra's access arrangement acceptable:
3.3—Fixed component of the haulage service charge (Albury)
9.3—Maintenance and removal
28.2—Termination by Envestra
33.3—User's indemnities–death or personal injury
34—Insurance
35.5(c) —Access to premises
39—Assignment
The AER proposes to either amend some of these proposed terms and conditions or remove others altogether.
Revised proposal
Envestra in its revised access arrangement proposal in relation to terms and conditions adopted most of the amendments required by the AER in its draft decision. In some cases Envestra has made minor changes to the amendment required by the AER.
Assessment approach
The AER's assessment approach for terms and conditions is set out in section 12.1.3 in attachment 12 of part 2 of the draft decision.
The AER received submissions from AGL969 and Origin.970
Reasons for decision
Where Envestra has adopted the AER's draft decision on a particular term, and no further submissions have been received on that term, the AER approves those terms or conditions for the reasons set out in its draft decision.971
The AER's reasons for approving or not approving all other terms and conditions is set out below.
Fixed component of the Haulage Service Charge
Albury
The AER proposes to revise sub-clause 3.3 (Fixed component of the Haulage Service Charge) in Envestra's Albury access arrangement. The AER's proposed amendment will remove the reference to Current User. This will reflect the approach taken by Envestra for its Victorian network and will make the Albury access arrangement acceptable.
Sub-clause 3.3 is substantially the same for the Envestra Victoria and Albury revised access arrangement proposals. The only variation is the clause in the Albury access arrangement proposal refers to the 'Current User'. However, this term is not defined.
AGL's submission points to the disparity between the two clauses.972
To address this disparity, the AER considers that consistency between Envestra's two businesses is beneficial and avoids confusion. This promotes the efficient operation and use of gas services and is in the long term interests of consumers with respect to price.
Albury & Victoria-Ongoing service charges
Sub-clause 3.3 provides that the Network User will remain responsible to pay Haulage Service Charges in respect of each Delivery Point for so long as it remains the FRO (Financially Responsible Organisation) for that Delivery Point.
AGL submitted that if there is no shared customer at the Delivery Point (DP) and no consumption, the Network User should not be liable for ongoing service charges.973
The AER considers that under AEMO’s Retail Market Procedures for Victoria, the party registered as the FRO is the party responsible for settling the account relating to the supply point. Accordingly, the AER considers that the proposed sub-clause is appropriate, because it follows the procedures of the market operator. This is consistent with the efficient operation of Envestra’s network.
