The AER approves Envestra's proposed sub-clause 3.4 (Guaranteed service level payments).
Revision 12.2 in the AER's draft decision required Envestra to insert a new sub-clause 3.4 requiring Envestra to notify the Network User where it makes a guaranteed service level payment directly to a Customer.
Envestra adopted the substance of the AER's required amendment, but proposed to clarify that the clause only applies if a Network User is a Gas Retailer. It also proposed to amend related definitions in the Glossary.974
GSL payments apply to the relationship between Network User, Customer and Service Provider. Where a Network User is an End User it will be the Customer. Where there is not a third party customer, GSL payments will not be applicable.
The AER considers that Envestra's amendments are commercially sensible and reasonable, create greater clarity and avoid the potential for uncertainty or disputes. This is in the long term interests of consumers with respect to price.
Retail services
The AER approves Envestra's non-inclusion of clause 3.5.
Revision 12.3 in the AER's draft decision required Envestra to insert a new sub-clause 3.5 in the same terms as clause 7.2 in Envestra's current terms and conditions. The AER's amendment required Envestra to pay fair and reasonable fees in respect of any Retail Services provided to Envestra by the Network User.975
Envestra did not adopt the amendment required in the AER's draft decision. Envestra submitted that it can request retail services without the proposed clause and the proposed clause does not appear to oblige Network Users to provide retail services that are requested.976 Other of the submissions put forward by Envestra relate to the form and mechanics of the clause.977
After reviewing Envestra's reasoning, the AER accepts that there is no need to include a term requiring payment. The AER considers that the clause is not necessary because Envestra can request services without the proposed clause. The clause is not needed to facilitate the request.978
The AER considers that if Envestra requests services from a Network User, it is open to the Network User to accept or refuse the request. The proposed terms and conditions do not oblige a Network User to provide services to Envestra. Accordingly, if Envestra requests services, the Network User can negotiate the terms on which it is prepared to provide those services. If Envestra does not accept those terms, the Network User may refuse to provide the requested services. In view of this, the AER approves Envestra's non inclusion of clause 3.5.
The AER approves Envestra's proposed sub-clause 4.3,
Sub-clause 4.3 provides that at no time will Envestra have an obligation to deliver more gas through a User Delivery Point than is possible given the technical, physical and practical limitations of the Network and the pressure and flow rate of gas in the Network at the time.
AGL submitted that it is the responsibility of the Service Provider to maintain the pressure and flow rate. Clause 14 (Delivery Pressures) should be adequate to limit the Service Provider’s liability. Therefore, AGL submitted that the limiting phrase “and the pressure and flow-rate of Gas within the Network” should be deleted.979
The AER considers that the qualification proposed by Envestra is consistent with the NGO. Envestra should not be obliged to deliver more gas than the technical limitations of the network provide for. The AER considers that pressure and flow-rate amount to technical limitations. The AER considers that clearly specifying the limits on Envestra’s obligation promotes the efficient operation use of gas services.
The AER does not approve sub-clause 9.3. The AER proposes revisions to sub-clause 9.3 to make Envestra's access arrangement acceptable.
Sub-clause 9.3 covers the removal of telemetered meters when they are no longer required by law. Revision 12.5 in the AER's draft decision required Envestra to amend sub-clause 9.3 by inserting the words 'and the Network User requests the equipment be removed'. Envestra did not adopt the AER's required amendment in its revised proposal.
In its draft decision the AER considered that it was not reasonable for Envestra to make a unilateral decision to remove the relevant equipment and then require the Network User to pay the removal costs. The AER considered that a Network User should only be obliged to pay the costs of removal where it requested the removal.980
In its revised proposal Envestra provided reasons to support its decision.981 However, following an information request982 from the AER, Envestra reconsidered the proposed amendment and adopted the clause proposed by the AER in its draft decision.983
AGL submits that this clause deems the Network User liable for the costs of removal of equipment regardless of circumstances. AGL submits that Network Users should only be liable where it has requested removal.984 The AER agrees with AGL.
Therefore, for the reasons set out in its draft decision, the AER does not approve sub-clause 9.3 of the revised proposal.985
Notice of Results
The AER approves Envestra's proposed sub-clause 10.5.
Sub-clause 10.5 provides that whenever a party responsible for a metering installation conducts a test at the request of the other party, it will give the other party notice of the results as soon as practicable after the test takes place.
Origin submitted that this clause be amended to read 'as soon as practicable and in any case within 10 business days'.986
The AER considers that an obligation to act as soon as practicable allows the flexibility to prioritise activities while imposing an obligation to provide the results.
The AER considers that a flexible approach to the performance of activities promotes the efficient operation and use of gas services, aspects of the NGO.
