Review of Standard OTSAs and Standardisation Costs and Charges

Sector: 
Status: 
Date completed: 
28 February 2020
Date initiated: 
1 March 2019
Effective date: 
1 March 2020
Contact: 
AER General Inquiries AERInquiry@aer.gov.au

Overview

The AER has conducted a review of facility operator compliance with the rules relating to standard Operational Transportation Service Agreements (OTSAs). We are required by the National Gas Rules to review and report on compliance of the standard OTSAs and charges for recovery of standardisation costs by 1 March 2020.

Standard OTSAs are standardised agreements for gas transportation facilities subject to the day ahead auction and the capacity trading platform. OTSAs are intended to support capacity trading by making gas transportation products more generic and tradeable.

Under the National Gas Law and National Gas Rules, facility operators must publish a standard OTSA which meets the rule requirements, and offer to enter such an agreement with eligible shippers. Any charges imposed by facility operators to recover the costs of implementing the capacity trading reforms must comply with the National Gas Rules.