VICTORIAN GAS INDUSTRY TARIFF ORDER 1998

TABLE OF PROVISIONS
CHAPTER 1  INTRODUCTION	
1.1	What interpretation principles apply to this Order and when does it commence?	
1.2 	What does this Order do?	
1.3 	How long does a tariff or a  price for a scheduled excluded service apply?	
1.4 	Are the prices prescribed prices for the purposes of the ORG Act, and the services declared services for the purposes of the GIA?	
CHAPTER 2  TRANSMISSION SERVICES	
2.1 	What must TPA charge?	
2.2 	What are the obligations of TPA to provide information?	
CHAPTER 3  DISTRIBUTION SERVICES	
3.1 	What must Tariffed Distributors charge?	
3.2 	What are the obligations of a Tariffed Distributor to provide information?	
CHAPTER 4  RETAIL SERVICES	
4.1 	What must Tariffed Retailers charge?	
CHAPTER 5  VENCORP SERVICES	
5.1 	What must VENCorp charge?	
5.2 	What are VENCorp’s total annual costs for the regulatory year ending 30 June 1999?	
CHAPTER 6 ALTERING, INTRODUCING AND ENDING TARIFFS AND PRICES FOR SCHEDULED EXCLUDED SERVICES	
6.1 	What are the principles that apply to altering tariffs?	
6.2 	How are new tariffs introduced by a Tariffed Retailer?	
6.3 	How are tariffs ended by a Tariffed Retailer?	
6.4 	What procedure is the Regulator to adopt in approving or disapproving a new tariff or an ending of a tariff by a Tariffed Retailer?	
6.5 	What information about tariffs must a Regulated Entity provide?	
6.6 	What are the general principles that apply to introducing a new price, or altering or ending prices for scheduled excluded services during the initial regulatory period?	
6.7 	Can the Regulator re-issue schedule 1 and publish maximum uniform tariffs that have been altered or ended, or new maximum uniform tariffs that have been introduced?	
6.8 	Saving	
CHAPTER 7  CHANGE IN TAX PASS THROUGH	
7.1 	What can a Regulated Entity do if a change in taxes event occurs?	
7.2 	What must the Regulator do if it receives a statement under clause 7.1?	
7.3 	What can the Regulator do if a change in taxes event occurs?	
7.4 	What factors must the Regulator consider in making a decision under clause 7.2 or 7.3?	
7.5 	When does a Regulated Entity apply a pass through amount?	
7.6 	Is the pass through amount within the price control calculations?	
CHAPTER 8  FORCE MAJEURE PASS THROUGH	
8.1 	What can a Tariffed Retailer do if a force majeure event occurs?	
8.2 	What must the Regulator do if it receives a statement under clause 8.1?	
8.3 	What factors must the Regulator consider in making a decision under clause 8.2?	
8.4 	When does a Tariffed Retailer pass through an amount in respect of a force majeure event?	
8.5 	Is the force majeure pass through amount within the price control calculations?	
CHAPTER 9 SUBSEQUENT ACCESS ARRANGEMENT PERIOD	
9.1 	What is the period during which chapters 2 to 8 and the schedules to this Order apply?	
9.2 	What are the fixed principles to be used by the Regulator to decide price regulation arrangements for the subsequent access arrangement period?	
CHAPTER 10 GLOSSARY AND INTERPRETATION	
10.1 	Glossary	
10.2 	Principles of interpretation	
SCHEDULE 1	
SCHEDULE 2	
SCHEDULE 3	
SCHEDULE 4	
SCHEDULE 5	

VICTORIAN GAS INDUSTRY TARIFF ORDER 1998
CHAPTER 1		INTRODUCTION
1.1	What interpretation principles apply to this Order and when does it commence?
(a)	This Order must be interpreted according to the principles in chapter 10.
(b)	This Order commences on 1 January 1999.
1.2	What does this Order do?
(a)	This Order regulates the pricing of tariffed services and excluded services provided by certain persons within the Victorian gas industry. 
(b)	This Order:
(1)	specifies the initial tariffs;
(2)	specifies the initial prices for scheduled excluded services;
(3)	specifies the principles, procedures and formulas which apply during the initial regulatory period for:
(A)	altering; 
		(B)	ending; and
(C)	introducing new,
tariffs and prices for  scheduled excluded services; and
(4)	provides guidance to the Regulator for the making of a price determination to regulate transmission tariffs and distribution tariffs in the subsequent access arrangement period.
1.3	How long does a tariff or a price for a scheduled excluded service apply?
(1)	Once a tariff or a price for a scheduled excluded service has been set under this Order, the tariff or price:
(a)	cannot be altered or ended except under this Order; and
(b)	continues to apply until the earliest of:
(1)	the date the tariff or price is altered or ended under this Order; and
(2)	for maximum uniform tariffs, 31 August 2001 and for transmission tariffs and  distribution tariffs and prices for scheduled excluded services, 31 December 2002.
(2)	Nothing in this clause 1.4 prevents the alteration, introduction or ending of a tariff or price in any case where section 2 of the Access Code applies.
1.4	Are the prices prescribed prices for the purposes of the ORG Act, and the services declared services for the purposes of the GIA?
(a)	The distribution tariffs, maximum uniform tariffs and prices for excluded distribution services regulated under this Order are prescribed prices in respect of the gas industry for the purposes section 8A of the GIA and section 24 of the ORG Act.
(b)	If the price for a tariffed distribution service, a tariffed retail service or an excluded distribution service  is regulated under this Order, then the tariffed distribution service, tariffed retail service or excluded distribution service is a prescribed service in respect of the gas industry for the purposes of section 8A of the GIA and section 24 of the ORG Act.
(c)	If a price for a tariffed service or an excluded service is regulated under this Order, then the tariffed service or excluded service is a declared service for the purposes of section 48A(2) of the GIA.
CHAPTER 2		TRANSMISSION SERVICES
2.1	What must TPA charge?
(a)	TPA must not charge more than an amount calculated in accordance with the relevant tariff for tariffed transmission services.
(b)	TPA must not charge more than an amount based on the price set under this Order for scheduled excluded transmission services.
(c)	TPA must charge for non-scheduled excluded transmission services on a fair and reasonable basis which is not inconsistent with:
(1)	this Order; 
(2)	the Access Code; and
(3)	any applicable guidelines published by the Regulator.
2.2	What are the obligations of TPA to provide information?
TPA must provide information in relation to which transmission tariff a supply point has been assigned under paragraph (b) of schedule 4 to:
(a)	the Regulator;
(b)	a Customer who is provided with tariffed services at that supply point; or
(c)	a Consumer who withdraws gas at that supply point, within 20 business days of that information being requested by that person.
CHAPTER 3		DISTRIBUTION SERVICES
3.1	What must Tariffed Distributors charge?
(a)	Tariffed Distributors must not charge more than an amount calculated in accordance with the relevant tariff for tariffed distribution services.
(b)	Tariffed Distributors must not charge more than an amount based on the price set under this Order for scheduled excluded distribution services.
(c)	Tariffed Distributors must charge for non-scheduled excluded distribution services on a fair and reasonable basis which is not inconsistent with:
(1)	this Order;
(2)	the Access Code; and
(3)	any applicable guidelines published by the Regulator.
3.2	What are the obligations of a Tariffed Distributor to provide information?
A Tariffed Distributor must provide information in relation to which distribution tariff a supply point on the Tariffed Distributor’s distribution pipeline has been assigned under paragraph (a) of the schedule 4 to: 
(a)	the Regulator;
(b)	a Customer who is provided with tariffed services at that supply point; or 
(c)	a Consumer who withdraws gas at that supply point,  within 20 business days of that information being requested by that person.
CHAPTER 4		RETAIL SERVICES
4.1	What must Tariffed Retailers charge?
Tariffed Retailers must not charge more than an amount calculated in accordance with the relevant maximum uniform tariff for tariffed retail services.
CHAPTER 5		VENCORP SERVICES
5.1	What must VENCorp charge?
(a)	VENCorp must not charge more than an amount calculated in accordance with the relevant tariff for tariffed VENCorp services. 
(b)	VENCorp must use reasonable endeavours to recover on an annual basis in total no more than the aggregate of VENCorp total annual costs.
5.2	What are VENCorp’s total annual costs for the regulatory year ending 30 June 1999? 
(a)	For the regulatory year ending 30 June 1999, VENCorp’s total annual costs allocated to tariffed VENCorp services are $13,500,000.
(b)	Nothing in this chapter 5 shall limit the ability of VENCorp to levy or impose charges, fees or costs arising from or related to:
(1)	the events giving rise to; or 
(2)	the proclamations under
section 62F of the GIA, published in the Government Gazette on 25 September 1998, notwithstanding that these charges, fees or costs may pre-date that proclamation.
CHAPTER 6	ALTERING, INTRODUCING AND ENDING TARIFFS AND PRICES FOR SCHEDULED EXCLUDED SERVICES
6.1	What are the principles that apply to altering tariffs?
(a)	For a regulatory year after the regulatory year ending 31 December 1999 or, in the case of VENCorp, 30 June 1999, at least 30 business days before the start of that regulatory year:
(1)	each of TPA, the Tariffed Distributors and the Tariffed Retailers must give the Regulator a statement:
(A)	setting out its proposed tariffs for that regulatory year; 
(B)	setting out the proposed tariff components for each of those tariffs;
(C)	demonstrating compliance of the proposed tariffs and tariff components with the relevant principles and formulas in schedule 5; and 
(D)	setting out the proposed changes (if any) in the billing parameters contained in schedule 1, or to any other matters in that schedule;
(2)	VENCorp must give the Regulator a statement setting out for that regulatory year:
(A)	its forecast of VENCorp total annual costs and the allocation of those forecast VENCorp total annual costs to each tariffed VENCorp service;
(B)	its proposed tariff for each tariffed VENCorp service designed to recover:
(i)	the forecast of VENCorp total annual costs allocated in accordance with clause 6.1(a)(2)(A); and
(ii)	any difference between its revenue from the tariffs and VENCorp total annual costs allocated in accordance with clause 6.1(a)(2)(A), in preceding regulatory years as provided to the Regulator under 6.1(a)(2)(C) or 6.1(a)(2)(D);
(C)	for a regulatory year after the regulatory year ending 30 June 1999, its estimate of any difference between its revenue from VENCorp tariffs and VENCorp total annual costs allocated in accordance with clause 6.1(a)(2)(A) in the preceding regulatory year;
(D)	for a regulatory year after the regulatory year ending 30 June 2000, in addition to its estimate provided under clause 6.1(a)(2)(C), any difference between its actual revenue from VENCorp tariffs and VENCorp total annual costs allocated in accordance with clause 6.1(a)(2)(A), in the regulatory year before the preceding regulatory year; and
(E)	sufficient information to enable the Regulator to decide whether the proposed VENCorp tariffs are consistent with this Order and the Access Code. 
(b)	A Tariffed Distributor and a Tariffed Retailer may alter a tariff component during the regulatory year with the Regulator’s approval.
(c)	To seek the Regulator’s approval to alter a tariff component, a Tariffed Distributor or a Tariffed  Retailer must give the Regulator a statement: 
(1)	setting out its proposed change in the tariff component; and 
(2)	demonstrating compliance with the relevant principles and formulas in the schedule 5.
(d)	VENCorp and TPA may alter a tariff component during a regulatory year by following the procedure in section 2 of the Access Code.
(e)	Subject to clause 6.1(i), the Regulator must not approve a statement:
(1)	given by TPA, a Tariffed Distributor or a Tariffed Retailer under clause 6.1(a) or (c) if the statement does not comply with the relevant principles and formulas in the schedule 5;
(2)	given by VENCorp under clause 6.1(a) if the statement is inconsistent with this Order or the Access Code; or
(3)	given by a Regulated Entity under clause 6.1(a) or (c) if a forecast included in the statement is not satisfactory to the Regulator.
(f)	The Regulator must approve a statement given by TPA, a Tariffed Distributor or a Tariffed Retailer under clause 6.1(a) or (c), if:
(1)	the statement complies with the relevant principles and formulas in schedule 5; and
(2)	all the forecasts included in the statement are satisfactory to the Regulator.
(g)	The Regulator must, in deciding under clause 6.1(e) or (f) whether a statement given by a Tariffed Distributor or a Tariffed Retailer under clause 6.1(c) complies with the relevant principles and formulas in schedule 5, decide whether the statement adopts procedures and principles that are consistent with schedule 5, including but not limited to:
(1)	ensuring that proposed average revenue outcomes are consistent with the average revenue formula, and the applicable CPI-X price path;
(2)	ensuring that individual tariff components are consistent with the rebalancing formula; and
(3)	the value at the date of the alteration, of any correction factor to correct for differences between forecast and actual quantities,
and nothing in schedule 5 implies that tariff components can only be altered at the start of each regulatory year.
(h)	If the Regulator does not notify a Regulated Entity of the Regulator’s decision regarding a statement given by the Regulated Entity under clause 6.1(a) or (c) within 20 business days of the Regulator receiving the statement, the Regulator is taken to approve the statement with effect from the 21st business day after the Regulator receives the statement.
(i)	The Regulator may approve a statement submitted by TPA when a forecast included in the statement  which has a material impact on the value of MATTt (as defined in Part A of schedule 5), is not satisfactory to the Regulator, but only on the conditions that:
(1)	the Regulator may substitute the forecast with a revised forecast to determine the value of MATTt  which is subsequently to be used in calculating:
(A)	KTat (as defined in Part A of schedule 5) for the next regulatory year (and in which case the value appears in the formula for KTat as MATTt-1 ); and
(B)	KTbt (as defined in Part A of schedule 5) for the regulatory year after the regulatory year referred to in clause 6.1(i)(1)(A) (and in which case the value appears in the formula for KTbt as MATTt-2); and
(2)	the Regulator may only substitute the revised forecast in relation to MATTt prior to approving a statement under clause 6.1(a) for the next regulatory year.
(j)	If, under clause 6.1(e), subject to clause 6.1(i), the Regulator must not approve a statement given by a Regulated Entity, and the Regulator has not approved the statement under clause 6.1(i), the Regulator may allow the Regulated Entity to replace the statement within such time as specified by the Regulator.
(k)	Where a statement has been replaced under clause 6.1(j):
(1)	if the replaced statement:
(A)	was provided under clause 6.1(a), the replacement statement will be taken to be a statement provided at least 30 business days before the start of the regulatory year under clause 6.1(a); or
(B)	was provided under clause 6.1(c), the replacement statement will be taken to be a statement provided under clause 6.1(c); and
(2)	the replaced statement will be taken not to have been submitted by the Regulated Entity. 
(l)	The tariffs in the statement given by a Regulated Entity under clause 6.1(a) or (c) approved or taken to be approved by the Regulator must apply from the latest of: 
(1)	the date on which the Regulator approves or is taken to approve the alteration; 
(2)	the start of the regulatory year in which the tariffs are to apply; and
(3)	in the case of statements given under clause 6.1(c), the date specified by the Regulated Entity.
(m)	If a Regulated Entity, does not provide a statement to the Regulator required under clause 6.1(a), in relation to a regulatory year or such a statement is provided but not approved by the Regulator, the Regulator may re-set the relevant tariffs for that Regulated Entity for the regulatory year in a manner in which the Regulator could have approved of the tariffs if included in a statement given by that Regulated Entity under clause 6.1(a).
6.2	How are new tariffs introduced by a Tariffed Retailer?
(a)	A Tariffed Retailer subject to clause 6.2(c), may introduce a new tariff with the Regulator’s approval.
(b)	To seek the Regulator’s approval to a new tariff a Tariffed Retailer must give to the Regulator a statement setting out:
(1)	a description of the service to which the new tariff is to apply;
(2)	the proposed new tariff;
(3)	sufficient information to enable the Regulator to assess whether the proposed new tariff is consistent with whichever are applicable of:
(A)	this Order; and
(B)	 its retail licence;
(4)	if the new tariff is intended to replace an existing tariff, details of the relevant existing tariff;
(5)	the effect of the proposed new tariff on Customers and Consumers; 
(6)	information as to which of the Customers who are currently charged based on an existing tariff will be charged based on the new tariff;
(7)	how the Tariffed Retailer proposes to recalculate and present the tariff components of the new tariff to demonstrate compliance with whichever are applicable of:
(i)	this Order; and
(ii)	its retail licence.
(c)	A Tariffed Retailer may introduce a new tariff in respect of a Tariffed Franchise Customer only if:
(1)	a Tariffed Franchise Customer supplied under the existing tariff when the new maximum uniform tariff is proposed to commence to apply will continue to be supplied under the existing maximum uniform tariff, unless the Tariffed Franchise Customer elects to be supplied under:
(A)	the new tariff; or
(B)	another of the Tariffed Retailer’s pricing structures under which the Tariffed Franchise Customer is eligible to be supplied; and
(2)	the Tariffed Retailer ensures that the Tariffed Franchise Customer supplied under the existing tariff has sufficient information to make an informed decision whether to make the election in clause 6.2(c)(1) (including information relating to the likely future movement in the prices applying under the existing tariff and the new tariff).
6.3	How are tariffs ended by a Tariffed Retailer? 
(a)	A Tariffed Retailer may end a tariff with the Regulator’s approval.
(b)	To seek the Regulator’s approval, a Tariffed Retailer must give the Regulator a statement setting out:
(1)	sufficient information to enable the Regulator to assess whether the proposed tariff ending is consistent with whichever are applicable of:
(A)	this Order; and
(B)	 its retail licence;
(2)	details of the tariff the Tariffed Retailer proposes to end;
(3)	the effect of the proposed ending on Customers and Consumers; and
(4)	the tariff on which Customers are to be charged after the ending of the existing tariff.
(c)	If a Tariffed Retailer obtains approval to end a tariff under clause 6.3(a), it must continue to charge a Tariffed Franchise Customer who receives tariffed retail services at a supply point which is assigned to the tariff at the time the tariff is ended, under that ended tariff, unless the Tariffed Retailer and the Tariffed Franchise Customer agree:
(1)	in writing; or
(2)	in another form approved by the Regulator,
that:
(3)	the supply point is to be assigned to another tariff; or
(4)	the services supplied to the Tariffed Franchise Customer at that supply point are not tariffed retail services.
6.4	What procedure is the Regulator to adopt in approving or disapproving a new tariff or an ending of a tariff by a Tariffed Retailer?
(a)	The Regulator must not approve a statement given by a Tariffed Retailer under clause 6.2(b) or 6.3(b) if the statement is inconsistent with whichever are applicable of:
(1)	 this Order; and
(2)	 its retail licence.
(b)	If the Regulator does not notify the Tariffed Retailer of the Regulator’s decision regarding a statement given by that Tariffed Retailer under clause 6.2(b) or 6.3(b) within 20 business days of the Regulator receiving the statement, the Regulator is taken to approve the statement with effect from the 21st business day after the Regulator receives the statement. 
(c)	If, under clause 6.4(a), the Regulator is unable to approve a statement given by a Tariffed Retailer, the Regulator may allow that Tariffed Retailer to replace the statement within such time as the Regulator allows.
(d)	Where a statement has been replaced under clause 6.4(c):
(1)	the replacement statement will be taken to be a statement submitted by that Tariffed Retailer under the same clause as the replaced statement was submitted; and
(2)	the replaced statement will be taken not to have been submitted by that Tariffed Retailer.
(e)	The Regulator may require a Tariffed Retailer to recalculate and present the tariff components or components of a proposed new tariff in the manner the Regulator thinks appropriate.
(f)	The introduction of a new tariff, or ending of a tariff approved or taken to be approved by the Regulator, must apply from the latest of:
(1)	the date on which the Regulator approves, or is taken to approve the new tariff, or ending of a tariff; and
(2)	the date specified by the Tariffed Retailer in the statement given under clause 6.2(b) or 6.3(b).
6.5	What information about tariffs must a Regulated Entity provide? 
(a)	TPA, a Tariffed Distributor or a Tariffed Retailer must provide a statement setting out its current tariffs for tariffed services as soon as practicable after being requested to do so by a person.
(b)	When a maximum uniform tariff is altered, a new maximum uniform tariff is introduced or a maximum uniform tariff is ended under this chapter 6, the Tariffed Retailer whose maximum uniform tariff has been altered, introduced or ended, must:
(1)	cause the new tariff, altered tariff or the fact that the tariff has been ended to be gazetted; and
(2)	where the alteration, introduction or ending of the tariff requires new assignment rules to be provided, cause the new assignment rules to be gazetted,
in accordance with the GIA.
6.6	What are the general principles that apply to introducing a new price, or altering or ending prices for scheduled excluded services during the initial regulatory period?
(a)	TPA or a Tariffed Distributor may introduce, alter or end a price for a scheduled excluded service with the Regulator’s approval.
(b)	To seek the Regulator’s approval, TPA or a Tariffed Distributor must give the Regulator a statement:
(1)	setting out the proposed price for the scheduled excluded service or the price it intends to end; and
(2)	demonstrating that the proposed introduction, alteration or ending is consistent with whichever are applicable of:
(A)	this Order; and
(B)	a distribution licence.
(c)	The Regulator must, in deciding whether to approve a statement provided under clause 6.6(b) by a Tariffed Distributor in relation to an alteration of a price for a scheduled excluded distribution service, take into account the allocation of costs between the relevant scheduled excluded distribution service and tariffed distribution services in deciding whether the proposed alteration is fair and reasonable.
(d)	If the Regulator does not notify TPA or a Tariffed Distributor of the Regulator’s decision regarding a statement given by TPA or the Tariffed Distributor under clause 6.6(b) within 20 business days of the Regulator receiving the statement, the Regulator is taken to have approved the statement with effect from the 21st business day after the Regulator receives the statement.
(e)	The introduction, alteration or ending of prices approved or taken to be approved by the Regulator must apply from the later of:
(1)	the date on which the Regulator approves or is taken to approve the introduction, alteration or ending; and
(2)	the date specified in the statement under clause 6.6(b) which was approved.
6.7	Can the Regulator re-issue schedule 1 and publish maximum uniform tariffs that have been altered or ended, or new maximum uniform tariffs that have been introduced?
(a)	The Regulator may, when a tariff is altered, a new tariff is introduced or a tariff is ended under this chapter 6, issue an amended schedule 1 which:
(1)	reflects the then current tariffs; and
(2)	contains any consequential changes that are necessary to properly give effect to the alteration, introduction or ending of the tariff.
(b)	The Regulator may, when a maximum uniform tariff is altered, a new maximum uniform tariff is introduced or a maximum uniform tariff is ended under this chapter 6:
(1)	cause the new tariff, altered tariff or the fact that the tariff has been ended to be gazetted; and
(2)	where the alteration, introduction or ending of the tariff requires new assignment rules to be provided, cause the new assignment rules to be gazetted.
(c)	Where the Regulator gazettes tariffs under clause 6.7(b), the Tariffed Retailer to whom the tariff relates is deemed to have gazetted the new tariff, altered tariff or the fact that the tariff has been ended in accordance with the GIA and this chapter 6.
6.8	Saving
Nothing in this chapter 6 prevents TPA or VENCorp from introducing or ending a tariff by following the procedure in section 2 of the Access Code.

CHAPTER 7		CHANGE IN TAX PASS THROUGH
7.1	What can a Regulated Entity do if a change in taxes event occurs?
If a change in taxes event occurs, a Regulated Entity may give a statement to the Regulator within 3 months of the change in taxes event occurring specifying:
(a)	details of the change in taxes event concerned; 
(b)	the date the change in taxes event took or takes effect; 
(c)	the estimated financial effect of the change in taxes event on the Regulated Entity; 
(d)	the pass through amount the Regulated Entity proposes in relation to the change in taxes event; and
(e)	the basis on which the pass through amount is to apply.
7.2	What must the Regulator do if it receives a statement under clause 7.1?
(a)	If the Regulator receives a statement under clause 7.1, the Regulator must decide whether the change in taxes event specified in the statement occurred or is continuing, and if the Regulator decides that the change in taxes event occurred or is continuing, the Regulator must decide:
(1)	the pass through amount; and 
(2)	the basis on which the pass through amount is to apply,
and notify the Regulated Entity in writing of the Regulator’s decision.
(b)	If the Regulator does not give a notice to the Regulated Entity under clause 7.2(a) within 20 business days of receiving a statement from the Regulated Entity under clause 7.1, on the 21st business day after receiving the statement from the Regulated Entity under clause 7.1, the Regulator is taken to have notified the Regulated Entity of its decision under clause 7.2(a) that the pass through amount and the basis on which the pass through amount is to apply are as specified in the statement given by the Regulated Entity under clause 7.1.
7.3	What can the Regulator do if a change in taxes event occurs?
(a)	If a change in taxes event occurs and a Regulated Entity likely to be affected by the change in taxes event does not give the Regulator a statement under clause 7.1 concerning the change in taxes event, the Regulator may decide on a pass through amount and the basis on which the pass through amount is to apply.
(b)	Where under clause 7.3(a) the Regulator decides on a negative pass through amount, the Regulator:
(1)	may decide to require a Regulated Entity to pass through the negative pass through amount decided by the Regulator on the basis decided by the Regulator; and 
(2)	where the Regulator decides to require the Regulated Entity to pass through the negative pass through amount, must notify the Regulated Entity in writing, of the negative pass through amount, the basis on which the negative pass through amount  is to apply and the reasons for the Regulator’s decision.
7.4	What factors must the Regulator consider in making a decision under clause 7.2 or 7.3?
In deciding the pass through amount and the basis on which the pass through amount is to apply under clause 7.2 or 7.3, the Regulator must ensure that the financial effect on the Regulated Entity associated with the change in taxes event concerned is economically neutral taking into account:
(a)	the relative amounts of tariffed services supplied to each Customer; 
(b)	the time cost of money for the period over which the pass through amount is to apply; 
(c)	the manner in which and period over which the pass through amount is to apply; 
(d)	the financial effect to the Regulated Entity associated with the provision of tariffed services directly attributable to the change in taxes event concerned, and the time at which the financial effect arises;
(e)	the amount of any change in another tax which, in the Regulator’s opinion, was introduced as complementary to the change in taxes event concerned;
(f)	the effect of any other previous change in taxes event since the later of the date of:
(1)	this Order; and 
(2)	the last decision made under clause 7.2 or 7.3(b); 
(g)	any pass through amount applied under this chapter 7 relating to a previous change in taxes event which resulted in the Regulated Entity recovering an amount either more or less than the financial effect on the Regulated Entity of that previous changes in taxes event; and
(h)	any other factors the Regulator considers relevant.
7.5	When does a Regulated Entity apply a pass through amount?
(a)	A Regulated Entity:
(1)	may, after 
(A)	receipt of a notice from the Regulator or a deemed receipt of a notice under clause 7.2 as to a positive pass through amount; and 
(B)	notifying its Customers of:
(i)	the positive pass through amount which the Regulator has approved or is deemed to have approved; and 
(ii)	the basis on and date from which the Regulated Entity will apply the positive pass through amount,
apply the positive pass through amount specified in the notice to Customers on the basis indicated in the notice; and
(2)	must, after receipt of a notice or deemed receipt of a notice from the Regulator, under clause 7.2, or after receipt of a notice under clause 7.3 as to a negative pass through amount apply the negative pass through amount on the basis decided by the Regulator.
(b)	The pass through amount must be:
(1)	shown separately on each Customer’s invoice; or 
(2)	otherwise identified in a manner approved by the Regulator. 
(c)	A Regulated Entity can only seek to reclaim from Customers positive pass through amounts in respect of services provided from the time that the Regulated Entity:
(1)	notified its Customers under clause 7.5(a)(1)(B); and 
(2)	started showing or identifying the positive pass through amount as required under clause 7.5(b).
7.6	Is the pass through amount within the price control calculations?
A pass through amount applied by a Regulated Entity under this chapter 7 is not:
(a)	taken into account in deciding the Regulated Entity’s revenues, tariffs or tariff components used in schedule 5 in deciding whether the Regulated Entity’s tariffs or tariff components comply with the principles and formulas in schedule 5; and
(b)	subject to the procedures in chapter 6.
CHAPTER 8		FORCE MAJEURE PASS THROUGH
8.1	What can a Tariffed Retailer do if a force majeure event occurs?
If a force majeure event occurs, a Tariffed Retailer may give a statement to the Regulator specifying:
(a)	details of the force majeure event concerned;
(b)	the date or dates on which the force majeure event occurred;
(c)	the estimated financial effect of the force majeure event on the Tariffed Retailer in respect of the provision of tariffed retail services; and
(d)	the force majeure pass through amount the Tariffed Retailer proposes in relation to the force majeure event; and
(e)	the basis on which the force majeure pass through amount is to apply.
8.2	What must the Regulator do if it receives a statement under clause 8.1?
(a)	If the Regulator receives a statement under clause 8.1, the Regulator must decide if the force majeure event specified in the statement occurred or is continuing, and if the Regulator decides that the force majeure event occurred or is continuing, the Regulator must decide:
(1)	the force majeure pass through amount; and
(2)	the basis on which the force majeure pass through amount is to apply,
and notify the Tariffed Retailer in writing of the Regulator’s decision.
(b)	If the Regulator does not give a notice to the Tariffed Retailer under clause 8.2(a) within 20 business days of receiving a statement from the Tariffed Retailer under clause 8.1, the Regulator is taken to have notified the Tariffed Retailer of its decision under clause 8.2(a) that the force majeure pass through amount and the basis on which the force majeure pass through amount is to apply are as specified in the statement given by the Tariffed  Retailer under clause 8.1.
8.3	What factors must the Regulator consider in making a decision under clause 8.2?
In deciding the force majeure pass through amount and the basis on which a force majeure pass through amount is to apply under clause 8.2, the Regulator must ensure that the financial effect on the Tariffed Retailer associated with the force majeure event concerned is economically neutral, taking into account:
(a)	the relative amounts of tariffed retail services supplied to each Tariffed Franchise Customer;
(b)	the time cost of money for the period over which the force majeure pass through amount is to apply; 
(c)	the manner in which and period over which the force majeure pass through amount is to apply;
(d)	the financial effect to the Tariffed Retailer associated with the provision of tariffed retail services directly attributable to the force majeure event concerned and the time at which the financial effect arises; 
(e)	any  force majeure pass through amount applied under this chapter 8 relating to a previous force majeure event which resulted in a Tariffed Retailer recovering an amount either more or less than the financial effect on the Tariffed Retailer of that previous force majeure event.
(f)	any other factors the Regulator considers relevant.
8.4	When does a Tariffed Retailer pass through an amount in respect of a force majeure event?
(a)	A Tariffed Retailer may, after:
(1)	receipt of a notice from the Regulator or a deemed receipt of a notice under clause 8.2 as to a force majeure pass through amount to be passed through; and
(2)	notifying its Tariffed Franchise Customers of,
(A)	the force majeure pass through amount which the Regulator has approved or is deemed to have approved; 
(B)	the circumstances giving rise to the force majeure event; and
(C)	the basis on and date from which the Tariffed Retailer will apply the force majeure pass through amount,
apply the force majeure pass through amount specified in the notice to Tariffed Franchise Customers, on the basis indicated in the notice.
(b)	The force majeure pass through amount must be:
(1)	shown separately on each Tariffed Franchise Customer’s invoice; or
(2)	otherwise identified in a manner approved by the Regulator.
(c)	A Tariffed Retailer can only seek to reclaim from Tariffed Franchise Customers force majeure pass through amounts in respect of services provided from the time that the Regulated Entity:
(1)	notified its Customers in accordance with clause 8.4(a)(2); and
(2)	started showing or identifying the force majeure pass through amount as required under clause 8.4(b).
8.5	Is the force majeure pass through amount within the price control calculations?
A force majeure pass through amount applied under this chapter 8 is not:
(a)	taken into account in deciding the Tariffed Retailer’s revenues, tariffs or tariff components used in schedule 5 in deciding whether the Tariffed Retailer’s tariffs or tariff components comply with the principles and formulas in the schedule 5; and
(b)	subject to the procedures in chapter 6.
CHAPTER 9	SUBSEQUENT ACCESS ARRANGEMENT PERIOD
9.1	What is the period during which chapters 2 to 8 and the schedules to this Order apply?
(a)	Subject to clause 9.2 and the Access Code, chapters 2 to 8 and the schedules to this Order cease to have effect:
(1)	in relation to tariffed transmission services and tariffed distribution services on 31 December 2002; and
(2)	in relation to tariffed retail services on 31 August 2001.
(b)	Nothing in this chapter 9, but subject to clauses 9.2(a)(7) and 9.2(b)(6), shall limit the Regulator’s powers or discretions in access arrangement periods after the subsequent access arrangement period.
(c)	Nothing in this clause 9.1 shall limit the Regulator’s powers relating to prices for services which are not tariffed transmission services or tariffed distribution services.
9.2	What are the fixed principles to be used by the Regulator to decide price regulation arrangements for the subsequent access arrangement period?
(a)	In making a price determination in relation to tariffed transmission services for the subsequent access arrangement period, the Regulator is to adopt the following fixed principles:
(1)	utilise incentive-based regulation adopting a CPI-X approach and not rate of return regulation;
(2)	set the X factor in the CPI-X formula so that only one X factor applies without revision for the entire subsequent access arrangement period to which the decision applies;
(3)	use the capital base for TPA at the start of the initial regulatory period, adjusted to take account of inflation since 1 January 1998, depreciation, wholly or partially redundant assets and additions and disposals in the ordinary course of business since 1 January 1998, other than a disposal of:
(A)	all of the assets and liabilities of TPA;
(B)	assets interdependent with a transaction pursuant to which all of the issued shares in or the assets and business of TPA cease to be held by or on behalf of the State of Victoria or a statutory authority; or
(C)	assets pursuant to which the assets of TPA are sold and leased back to TPA;
(4)	ensure a fair sharing between TPA and its Customers of the benefits achieved through efficiency gains if, in the initial regulatory period, TPA has achieved efficiencies greater than the value implied by the value of XT, which is the X factor that applies to TPA under the CPI-X formula in the initial regulatory period (as defined in Part A of schedule 5) and, in ensuring a fair sharing of the benefits, may have regard to the following matters without limitation:
(A)	the need to offer TPA a continuous incentive to improve efficiencies both in operational matters and in capital investment; and 
(B)	the desirability of rewarding TPA for efficiency gains, especially where those gains arise from management initiatives to increase efficiency;
(5)	have regard to the need to take into account the value of KTt (as defined in Part A of schedule 5) for the first year of the subsequent access arrangement period, as though that year represented regulatory year “t” for the purposes of applying the formula for KTt 
(6)	have regard to:
(A)	the cost of making, producing or supplying the goods or services which TPA makes, produces or supplies;
(B)	any relevant interstate or international benchmarks for prices, costs and returns on assets in private sector industries comparable to those in which TPA operates; and 
(C)	the level of executive remuneration in TPA by reference to any relevant interstate and international private sector benchmarks for that remuneration;
(7)	the Regulator may, in ensuring a fair sharing of the benefits of efficiency gains under clause 9.2(a)(4), choose to share the benefits referred to in that clause in the subsequent access arrangement period, both in the subsequent access arrangement period and in access arrangement periods after the subsequent regulatory period.; and
(8)	the Regulator may issue statements of regulatory intent which elaborate on how the Regulator will exercise its powers under clause 9.2(a)(4).
(b)	In making a price determination in relation to tariffed distribution services for the subsequent access arrangement period, the Regulator is to adopt the following fixed principles:
(1)	utilise incentive-based regulation adopting a CPI-X approach and not rate of return regulation, whereby the CPI -X escalation could apply to:
(A)	an average price basket;
(B)	individual prices;
(C)	average revenue;
(D)	revenue; or
(E)	any combination of the factors referred to in clauses 9.2(b)(1)(A) to (D);
(2)	set the X factor in the CPI-X formula so that only one X factor applies without revision for the entire subsequent access arrangement period to which the decision applies, provided that (for the avoidance of doubt), this clause does not preclude the Regulator from making Po adjustments (whether partial or otherwise) to the price path at the start of the subsequent access arrangement period;
(3)	use the capital base for the Tariffed Distributor at the start of the initial regulatory period, adjusted to take account of:
(A)	changes to CPI since 1 January 1998;
(B)	depreciation;
(C)	new facilities investment meeting the requirements of section 8 of the Access Code;
(D)	disposals in the ordinary course of business since 1 January 1998, other than a disposal of:
(i)	all of the assets and liabilities of the Tariffed Distributor;
(ii)	assets interdependent with a transaction pursuant to which all of the issued shares in or the assets and business of the Tariffed Distributor cease to be held by or on behalf of the State of Victoria or a statutory authority; or
(iii)	assets pursuant to which the assets of the Tariffed Distributor are sold and leased back to the Tariffed Distributor;
(E)	any adjustments which may be made by the Regulator to take account of redundant capital, in the following circumstances:
(i)	where customer specific assets become unused and are reasonably likely to remain unused for a substantial part of the subsequent access arrangement period, the value attributable to those assets should be removed;
(ii)	the value attributable to assets that are sold should be removed; and
(iii)	shared assets will be retained in the capital base and may not be adjusted by the Regulator for redundant capital; 
(4)	in using the capital base in accordance with clause 9.2(b)(3), have regard to the public policy adjustments (asset writedowns) to the Tariffed Distributor’s capital base which are designed to protect the interests of Consumers so that:
(A)	when a Tariffed Distributor separates the aggregated asset classes making up the initial capital base so as to generate a detailed asset register the Tariffed Distributor will allocate the capital base to particular assets or groups of assets consistent with the initial distribution tariffs;
(B)	when the Regulator considers the allocation of costs and tariff design before the start of the subsequent access arrangement period, it will exercise its discretion under sections 8.38 to 8.42 of the Access Code to provide outcomes for distribution tariffs in the subsequent access arrangement period which are consistent with the intent of the public policy adjustments;
(5)	ensure a fair sharing between a Tariffed Distributor and its Customers of the benefits achieved through efficiency gains if, in the initial regulatory period, the Tariffed Distributor has achieved efficiencies greater than the value implied by the value of XD, which is the X factor that applies to the Tariffed Distributor under the CPI-X formula in the initial regulatory period (as defined in Part B of schedule 5) and, in ensuring a fair sharing of the benefits, may have regard to the following matters without limitation:
(A)	the primary objective of ensuring such a fair sharing of benefits is to maintain a continuity of incentive to make efficiency gains throughout an access arrangement period;
(B)	the need to offer the Tariffed Distributor a continuous incentive to improve efficiencies both in operational matters and in capital investment; and 
(C)	the desirability of rewarding the Tariffed Distributor for efficiency gains, especially where those gains arise from management initiatives to increase the efficiency of the relevant business;
(6)	the Regulator may, in ensuring a fair sharing of the benefits of efficiency gains under clause 9.2(b)(5), choose to share the benefits referred to in that clause in the subsequent access arrangement period, both in the subsequent access arrangement period and in access arrangement periods after the subsequent access arrangement period;
(7)	have regard to the need to take into account the value of KDt (as defined in Part B of schedule 5) for the Tariffed Distributor, for the first year of the subsequent access arrangement period, as though that year represented regulatory year “t” for the purposes of applying the formula for KDt;, so that any credit or debit remaining from the initial regulatory period as a result of the KD adjustments (including, for the avoidance of doubt and when the Regulator can demonstrate otherwise, any such adjustments arising from the operation of clause 9.2(b)(5)) is to be deducted or added to the total revenue for the subsequent access arrangement period;
(8)	have regard to:
(A)	the cost of making, producing or supplying the goods or services which the Tariffed Distributor makes, produces or supplies;
(B)	any relevant interstate or international costs or benchmarks for prices, costs and returns on assets in private sector industries comparable to those in which the Tariffed Distributor operates; and 
(C)	the level of executive remuneration in the Tariffed Distributor by reference to any relevant interstate and international private sector costs or benchmarks for that remuneration;
(9)	the Regulator should administer sections 8.38 to 8.42 of the Access Code to ensure that, where distribution tariffs which apply in respect of a supply point at which less than 50GJ of gas is supplied annually (in subsequent clauses below, referred to as “small customers”) would rise by a factor greater than CPI over the subsequent access arrangement period, such increase is phased in gradually over the subsequent access arrangement period; 
(10)	apply the rebalancing formula in Part B of schedule 5 to the tariff components of distribution tariff V, or equivalent distribution tariff applying to small Customers receiving tariffed distribution services, with the effect that the distribution tariff V tariff structure will remain in place for the first year of the subsequent access arrangement period, starting at the level at which it was at the end of the initial regulatory period, and each tariff component will fall in real terms by 1 per cent over that year;
(11)	in deciding the transitional arrangements in clause 9.2(b)(9) and the application of the rebalancing formula referred to in clause 9.2(b)(10), decide whether metering services and distribution connection services associated with distribution tariff V, or equivalent distribution tariff applying to small Customers receiving tariffed distribution services, should remain tariffed services for the period in which the transitional arrangements in clause 9.2(b)(9) apply, with the effect that if the Regulator decides to unbundle the tariffed distribution services supplied to supply points assigned to distribution tariff V, the references to a distribution tariff in this clause 9.2(b) is to be taken as a reference to that distribution tariff after it has been reduced to take account of the fact that part of the previous bundled service is to be charged as a separate service; and
(12)	the Regulator may issue statements of regulatory intent which elaborate on how the Regulator will exercise its powers under clause 9.2(b)(5).

CHAPTER 10	GLOSSARY AND INTERPRETATION	
10.1	Glossary			
ACCC	The Australian Competition and Consumer Commission.	
Access Arrangement	The same meaning as in the Access Code.	
access arrangement period	The same meaning as in the Access Code.	
Access Code	The Victorian Third Party Access Code for Natural Gas Pipeline Systems, and where and when applicable, subject to section 24A and 24B of the Gas Pipelines Access (Victoria) Act 1998, the new Access Code, as more particularly described in section 24A of that Act. 	
annual GJ	The quantity of gas (in GJ) withdrawn at a supply point in a 12 month period.	
annual GJ volume limit	10,000 GJ of gas withdrawn at a supply point in the immediately preceding 12 month period. If less than 12 months’ data is available, the consumption is pro-rated to 365 days.	
annual MHQ	The highest quantity of gas (in GJ) withdrawn at a supply point in any hour in a calendar year.	
Authority	Any:
(a)	government or regulatory department, body, instrumentality, minister, agency or other authority; or
(b)	body which is the successor to the administrative responsibilities of that department, body, instrumentality, minister, agency or authority.	
business day	A day other than a Saturday a Sunday or a day which is proclaimed as a public holiday in Victoria. 	
capital base	The same meaning as in the Access Code.	
change in taxes event	A change in the way or rate at which a relevant tax is calculated or the removal or imposition of a relevant tax to the extent that the change, removal or imposition is directly attributable to supplying tariffed services and results in:	
	(a)	a Regulated Entity being required to pay an amount that the Regulated Entity would not have been required to pay; or	
	(b)	a change in the amount which a Regulated Entity is required to pay from that which it would have been required to pay,	
	under the law that applied at the date of this Order (whether directly by way of tax or indirectly through prices paid for goods or services to another Regulated Entity) as a result of a new statute or amendment of any statute or the interpretation of an existing statute resulting from the decision of a court, tribunal, arbitrator or Authority which is binding on the Regulated Entity; and includes (for the avoidance of doubt) introduction of Goods and Services Tax (GST) or any like such tax within Australia.	
commercial tariff	A maximum uniform tariff which applies at a distribution supply point which is not subject to the contract tariff and at which gas is supplied to a business, charitable body, government institution, club, community service organisation or religious body not being at a distribution supply point that would otherwise be assigned to the industrial tariff.	
competitive distribution services	A service provided by a Tariffed Distributor which is not: 
(a)	a tariffed distribution service; or 
(b)	an excluded distribution service.	
competitive retail services	A service provided by a Tariffed Retailer which is not a tariffed retail service.	
competitive services	(a)	competitive VENCorp services;
(b)	competitive transmission services;	
	(c)	competitive distribution services; and
(d)	competitive retail services.	
competitive transmission services	A service provided by TPA which is not: 
(a)	a tariffed transmission service; or
(b)	an excluded transmission service.	
competitive VENCorp services	A service provided by VENCorp which is not a tariffed VENCorp service.	
Consumer	A person who consumes or proposes to consume gas at a supply point.	
Contract Franchise Customer	A Tariffed Franchise Customer who is supplied gas under a contract with Gascor or with a Tariffed Retailer at a tariff other than the domestic tariff, the commercial tariff or the industrial tariff.	
contract tariff	The tariff that applies to a distribution supply point at which a Contract Franchise Customer is supplied with gas.	
CPI	For a regulatory year:
(a)	where the All Groups Consumer Price Index for the Eight State Capitals for the September quarter before the start of that year and the September quarter before the September quarter previously referred to are published, is:
(1)	the All Groups Consumer Price Index for the Eight State Capitals published by the Australian Bureau of Statistics for the September quarter before the start of that year;
divided by:
(2)	the All Groups Consumer Price Index for the Eight State Capitals published by the Australian Bureau of Statistics for the September quarter before the September quarter referred to in paragraph (a)(1);
(b)	where the All Groups Consumer Price Index for the Eight State Capitals for either of the September quarters referred to in paragraph (a) has not been published, CPI is calculated using an index officially substituted for the All Groups Consumer Price Index for the Eight State Capitals , which reflects changes in the cost of living in the Eight State Capitals ; and
(c)	where the All Groups Consumer Price Index has not been published for the Eight State Capitals for either of the September quarters referred to in paragraph (a) and no index has been officially substituted for the All Groups Consumer Price Index for the Eight State Capitals, CPI is calculated using an index that the Regulator decides reflects changes in the cost of living in the Eight State Capitals.	
Customer	A person with whom a Regulated Entity contracts in relation to the provision of a tariffed service. The person with whom a Regulated Entity contracts to provide a tariffed service is regarded as the person to whom the  tariffed service is provided.	
5 day injection MDQ	The quantity of gas (in GJ) injected on behalf of a Customer at the Longford injection point during the 5 gas days in the peak period when the 5 highest daily quantities of gas (in GJ) were injected at the Longford injection point.	
5 day withdrawal MDQ	The aggregate quantity of gas (in GJ) withdrawn by a Customer at a supply point:
(a)	excluding a supply point referred to in paragraph (b) of this definition, during the 5 gas days in the peak period when the 5 highest daily quantities of gas (in GJ) were withdrawn at the transmission supply points in all transmission zones, excluding the supply points referred to in paragraph (b) of this definition; and
(b)	supplied from the Chiltern Valley or Barnawartha transmission pipeline supply point, during the 5 gas days in the peak period when the 5 highest daily quantities of gas (in GJ) were withdrawn at the transmission supply points in the North Hume transmission zone.	
distribution connection 	Gas equipment on a Consumer’s premises that allows the flow of gas from a distribution main for consumption on the Consumer’s premises.	
distribution demand tariff component	A tariff component of distribution tariff D, in $/GJ for annual MHQ.	
distribution fixed tariff component	A tariff component of distribution tariff V, in $/day.	
distribution injection point	A point at which gas is injected into a tariffed distribution pipeline.	
distribution licence	A licence to provide services by means of a distribution pipeline under the GIA.	
distribution main	A tariffed distribution pipeline not on a Consumer’s premises.	
distribution pipeline	The same meaning as in the GIA. 	
distribution supply point	A supply point on a tariffed distribution pipeline.	
Distribution System Code	The Distribution System Code means the Code of that name referred to in any distribution licence issued to a Tariffed Distributor by the Regulator.	
distribution tariff D	The tariff which applies to a tariffed distribution service and comprises distribution demand tariff components.	
distribution tariffs	Tariffs for tariffed distribution services.	
distribution tariff V	The tariff which applies to a tariffed distribution service and comprises a distribution fixed tariff component and distribution volume tariff components.	
distribution transfer point	A transfer point between a distribution pipeline by means of which one of the Tariffed Distributors provides services and a distribution pipeline by means of which another Gas Distribution Company (which is not exempt from the requirement to hold a licence because of an Order under section 48C of the GIA) provides services.	
distribution volume tariff component	A tariff component of distribution tariff V, in $/GJ for GJs of gas withdrawn in the peak period or in the off-peak period.	
distribution zone	An area defined as at 9 December  1997 in paragraph (b) of schedule 3.	
domestic tariff	The maximum uniform tariff which applies at a distribution supply point which is not subject to the contract tariff and at which gas is supplied for domestic use.	
energy calculation	The same meaning as in the MSO Rules.	
excluded distribution services	(a)	Distribution connection services other than those that are tariffed distribution services;
(b)	metering services other than those using standard meters;	
	(c)	provision of equipment and installations for the collection of metering data, and the collection of metering data other than as provided as part of tariffed distribution services.	
	(d)	validating, processing and storing metering data and energy calculations other than provided as part of tariffed distribution services;	
	(e)	provision of wholesale market interface services other than provided as part of tariffed distribution services;	
	(f)	provision of a register of information relating to the meter and associated equipment and installations for the collection of metering data;	
	(g)	expansion or extension of the distribution pipeline to provide services other than tariffed distribution services; 	
	(h)	distribution mains extensions other than those which are tariffed distribution services;	
	(i)	provision of services that but for paragraph (i) in the definition of tariffed distribution services would be tariffed distribution services;	
	(j)	miscellaneous services, including:	
	(1)	connection of new LPG services; 	
	(2)	services (including provision of meters, pipework or pressure regulating equipment) for the specific benefit of a third party (and requested by the third party) and not made available by a Tariffed Distributor as a normal part of standard service to all Customers, for example: 	
	(A)	charges for moving distribution mains, meters, regulators or associated equipment forming part of a Tariffed Distributor’s distribution pipeline to accommodate extension, re-design or redevelopment of any premises; 	
	(B)	providing pre-payment meters to Customers where the cost of providing those meters exceeds the cost of providing standard meters for those Customers; 	
	(C)	providing remote meter readings to Customers; 	
	(3)	charges for specific services for identified Customers; 	
	(4)	charges for temporary supplies;	
	(5)	charges for reserve (duplicate) supply; 	
	(6)	charges for supplies with higher reliability standards than required by the Distribution System Code; 	
	(7)	charges for multiple connection points to a single premises not recovered through the distribution tariffs; 	
	(8)	charges for a disconnection from and reconnection to the distribution pipeline;	
	(9)	charges for repair of damage and reinstatement costs resulting from damage to the distribution pipeline caused by third parties;	
	(10)	charges for testing meters at the request of the Customer where the meter accuracy is shown to be within the limits set out in the Distribution System Code; and	
	(11)	charges for enlargement in size or capacity of a standard distribution connection.	
excluded services	(a)	Excluded transmission services; and
(b)	excluded distribution services.	
excluded transmission services	(a)	Supplying, operating, maintaining and calibrating the transmission connection facilities installed at a supply  point or transfer point;	
	(b)	expansion or extension of the transmission pipeline to provide services other than tariffed transmission services;	
	(c)	operating or maintaining a transmission pipeline which is not a tariffed transmission pipeline;	
	(d)	additional transmission services and LNG storage facility services;	
	(e)	that part of a transmission service with a higher quality or service rating than the standard specified in the MSO Rules (including, for the avoidance of doubt, any standard specified in any service envelope agreement referred to in those Rules) or TPA’s Access Arrangement for a tariffed transmission service, and which involves TPA installing additional equipment or incurring additional expenditure to provide that service but only that level additional to the tariffed transmission service is an excluded transmission service;	
	(f)	providing expanded facilities to a Customer by an agreement which covers the costs to plan, design and build a new facility, including facilities for transmission expansion ; 	
	(g)	any special service provided to a Tariffed Distributor or other gas pipeline owner at its request, including:	
	(1)	providing Williamsons equipment for standard or emergency purposes;
(2)	providing equipment, services or personnel to assist in an emergency situation related to safety or security of supply;
(3)	a delay in scheduled maintenance which causes TPA to incur additional costs;	
	(4)	providing data related to the transmission pipeline where this is not covered by this Order;	
	(h)	any services provided to Customers which lessen the impact on Customers of a failure of a producer to provide agreed quantities of gas at the agreed gas quality specifications and agreed injection point pressures and withdrawal rates;	
	(i)	chargeable work undertaken at the request of another person, including:	
	(1)	alterations to the tariffed transmission pipeline resulting from the activities of the third party, including relocating distribution mains;	
	(2)	alterations to transmission connection facilities required by a Customer, including relocation of transmission transportation services, valves, security fences, heaters, meters and data acquisition and transmission equipment; and 	
	(3)	testing meters outside the standard testing and calibration procedures carried out at the request of a Customer; 	
	(j)	LNG service facilities providing system security services; 	
	(k)	metering services; 	
	(l)	provision of equipment and installations for the collection of metering data, and the collection of metering data;	
	(m)	validity, processing and storing metering data and energy calculations;	
	(n)	provision of wholesale market interface services;	
	(o)	provision of a register of information relating to the meter and associated equipment and installations for the collection of metering data;	
	(p)	any services provided which involve special facilities for exceptional or unusual flow patterns; and	
	(q)	provision of services that but for paragraph (c) of the definition of tariffed transmission services would be tariffed transmission services.	
expansion	The process of upgrading the capacity or service potential of a transmission pipeline or a distribution pipeline by:	
	(a)	replacing or enhancing existing plant or equipment; or	
	(b)	adding new plant or equipment.
For the avoidance of doubt, nothing that falls within paragraphs (e) and (f) of the definition of excluded transmission services shall be considered to be an expansion.	
extension	Extending a pipeline to enlarge the area to which gas may be, or is, supplied, including (for the avoidance of doubt) extensions which connect together pre-existing pipeline systems.	
fixed principles	The same meaning as in the Access Code.	
force majeure event	A force majeure event under an Agency Agreement between Gascor and a Tariffed Retailer which results in the Tariffed Retailer incurring materially higher costs in providing tariffed retail services than it would have incurred had the force majeure event under that Agency Agreement not occurred.	
force majeure pass through amount	In relation to the occurrence of a force majeure event, an amount that a Tariffed Franchise Customer is required to pay a Tariffed Retailer or a factor by which amounts the Tariffed Franchise Customer is required to pay the Tariffed Retailer are increased.	
Franchise Customer	A Customer of a Tariffed Retailer who is:	
	(a)	not a Non-franchise Customer, except a customer who is not a Non-Franchise Customer and who is sold gas by a Retailer in a new area pursuant to a new areas licence issued under section 6B(3) of the GIA; or	
	(b)	a Non-franchise Customer to whom the Retailer under its licence has an exclusive right to sell gas.	
gas	The same meaning as in the GIA.	
Gascor	The body corporate of that name established under the GIA.	
Gas Distribution Company	The same meaning as in the GIA.	
gas day	The same meaning as in the MSO Rules.	
gas production facility	Any gas processing plant and associated facilities, excluding an LNG processing facility or an LNG storage facility. 	
gazette	Publish in the Victorian Government Gazette.	

GIA	The Gas Industry Act 1994 (Victoria). 	
GJ	Gigajoule. Equal to one thousand million Joules (1,000,000,000J). 	
GTC	The Gas Transmission Corporation established under the GIA.	
hourly load factor	The ratio of the average hourly requirement to the maximum hourly requirement, calculated as: annual GJ  (annual MHQ x 365 x 24)	
incremental tariff for tariffed transmission extension	A tariff which applies to a tariffed transmission extension, and comprises a transmission volume tariff component, in $/GJ for GJs of gas delivered in the calendar year, and a transmission demand tariff component, in $/GJ for 5 day withdrawal MDQ.	
industrial tariff	A maximum uniform tariff which applies at a distribution supply point which is not subject to the contract tariff, and at which gas is supplied to a factory.	
initial distribution tariffs	The tariffs set out in schedule 1, paragraph 2.	
initial maximum uniform tariffs	The tariffs set out in schedule 1, paragraph 3.	
initial prices	The prices for excluded services set out in schedule 2.	
initial regulatory period	From the date upon which the Regulator’s decision to approve the Access Arrangements takes effect, until 31 December 2002.	
initial tariffs	(a)	initial VENCorp tariffs;
(b)	initial transmission tariffs;
(c)	initial distribution tariffs; and
(d)	initial maximum uniform tariffs. 	
initial transmission tariffs	The tariffs set out in schedule 1, paragraph 1.	
initial VENCorp tariffs	The tariffs set out in schedule 1, paragraph 4.	
injection point	A transmission injection point or a distribution injection point. 	
J	Joule. A unit of energy as defined in AS1000-1979 "The International System of Units (SI) and its Application". 	
kPa	Kilopascal. Equal to 1000 pascals as defined in Australian Standard AS1000-1979 "The International System of Units (SI) and its Application" and, unless otherwise specified, refers to a gauge pressure greater than the atmospheric pressure. 	
LNG	Liquified natural gas. 	
LNG storage facilities	The storage facility for LNG owned by TPA located at Dandenong, Victoria.	
Longford injection point 	The transmission injection point at Longford, Victoria.	
m3	Standard cubic metre. The quantity of dry gas at a temperature of 15 degrees Celsius and an absolute pressure of 101.325kPa enclosed in a volume of 1 cubic metre.	
Market Participant	The same meaning as in the MSO Rules.	
matched injection factor	The factor specified in column 4 of the table in paragraph 1(a) of schedule 1 which is multiplied by the corresponding transmission demand tariff component to calculate the transmission injection tariff for the corresponding transmission zone or transmission pipeline supply point.	
matched withdrawal factor	The factor specified in column 5 of the tables in paragraphs 1(b), 1(c) and 1(d) of schedule 1 which is multiplied by the corresponding peak period transmission volume tariff component or transmission demand tariff component to calculate the peak period transmission volume tariff component or transmission demand tariff component for the particular transmission zone or transmission pipeline supply point.	

maximum uniform tariff	Tariffs that apply to tariffed retail services.	
MDQ	Maximum daily quantity of gas (in GJ).	
meter	A device which measures and records data relating to the volumes and/or quantities of gas, and associated equipment. 	
metering	Recording the volume and/or quantity of gas.	
metering data	The data obtained from a meter and associated equipment and installations installed at a supply point, including data relating to the volume, pressure and temperature of gas.	
MHQ	Maximum hourly quantity of gas (in GJ).	
MHQ demand limit	10GJ of gas withdrawn at a distribution supply point in any hour in the immediately preceding 12 month period. 	
MJ	Megajoule. Equal to one million Joules (1,000,000 J). 	
MSO Rules	The same meaning as in the GIA.	
negative pass through amount	In relation to the occurrence of a change in taxes event, an amount that a Regulated Entity is required to pay to its Customers or a factor by which amounts the Customer is required to pay the Regulated Entity are reduced.	
new facilities investment	The same meaning as in the Access Code.	
Non-franchise Customer	The same meaning as in the GIA.	
non-scheduled excluded distribution services	Excluded distribution services other than scheduled excluded distribution services, but not including a service agreed by any person with a Tariffed Distributor not to be a non-scheduled excluded distribution service.	
non-scheduled excluded transmission services	Excluded transmission services other than scheduled excluded transmission services, but not including a service agreed by any person with TPA not to be a non-scheduled excluded transmission service.	
off-peak period	The period of a calendar year except the peak period.	
Order	This Victorian Gas Industry Tariff Order. 	
ORG	The Office of the Regulator-General under the ORG Act.	
ORG Act	The Office of the Regulator-General Act 1994.	
pass through amount	A positive pass though amount or a negative pass through amount.	
peak period	The period of 1 June to 30 September of a calendar year.	

pipeline	The same meaning as in the GIA.	
positive pass through amount	In relation to the occurrence of a change in taxes event, an amount that a Customer is required to pay to a Regulated Entity or a factor by which amounts the Customer is required to pay the Regulated Entity are increased.	
reference tariff	The same meaning as in the Access Code.	
Regulated Entity	VENCorp, TPA, a Tariffed Distributor or a Tariffed Retailer.	
Regulator 	In relation to:
(a)	VENCorp tariffs, transmission tariffs and  prices for excluded transmission services, the ACCC; and	
	(b)	distribution tariffs, maximum uniform tariffs and prices for excluded distribution services, the ORG.	
regulatory objectives	The relevant regulatory objectives that apply to a Regulator under:
(a)	the Trade Practices Act; 	
	(b)	the ORG Act; or	
	(c)	the GIA;
as applicable.	
regulatory year	The following periods:
(a)	for TPA, a Tariffed Distributor and a Tariffed Retailer, a period ending on 31 December each year during the initial regulatory period.	
	(b)	for VENCorp, a period ending on 30 June each year.	
relevant tax	Any tax but excluding any: 	
	(a)	income tax (or State equivalent income tax), fringe benefits tax or capital gains tax; 	
	(b)	payroll tax; 	
	(c)	fees and charges paid or payable to the Regulator for retail licences, or distribution licences or any other membership, contribution or other charge payable to other regulatory bodies in the gas industry;	
	(d)	land tax or any other tax on the ownership or occupancy of premises; 
(e)	customs and import duty;
(f)	municipal rates, taxes and other charges imposed by local authorities;
(g)	stamp duty, financial institutions duty, bank accounts debits tax or similar taxes or duties;	
	(h)	penalties and interest for late payment relating to any tax; or	
	(i)	any tax that replaces any of the taxes referred to in (a) to (h), 	
	except that:
(j)	the exclusion of the taxes specified in paragraph (a) to (i) inclusive, shall not operate in the event that one or more of those taxes is replaced as part of the introduction of a Goods and Services Tax (GST) within Australia,	
	and in this definition, “tax” includes any rate, duty, charge or other like or analogous impost.	
Retailer	The same meaning as “gas retailer” in the GIA.	
retail licence	A licence to sell gas by retail under the GIA. 	
retail zone	An area defined as at 9 December 1997 in paragraph (c) of schedule 3.	
scheduled excluded distribution services	The excluded distribution services in paragraph (b) of the schedule 2.	
scheduled excluded services	Scheduled excluded transmission services and scheduled excluded distribution services.	
scheduled excluded transmission services	The excluded transmission services in paragraph (a) of the  schedule 2.	
service entry point	The point at which the distribution connection crosses the boundary of the Consumer’s premises, so as to make the distribution connection perpendicular to the distribution main to which the distribution connection is connected, in accordance with the Tariffed Distributor’s procedures.	
significant extension	The same meaning as in the Tariffed Distributors’ Access Arrangements, or TPA’s Access Arrangement (as the case may be).	
standard meter	The least overall cost, technically acceptable meter with no by-pass leg required to measure and record the quantity of gas reasonably expected to be consumed by a Consumer at a distribution supply point in a 12 month period at a metering pressure of 1.1 kPa and at an hourly load factor of at least 5%.	
subsequent access arrangement period	The period of 5 calendar years from 1 January 2003.	
supply point	The same meaning as in section 6C of the GIA but as if the definition in that section was also in relation to the provision of services to a Customer at the supply point and not just in relation to the withdrawal of gas .	
tariff	The combination of tariff components applying to a tariffed service supplied to a Customer.	
tariff component	An individual price element comprising part of a tariff.	
tariffed distribution expansions	Expansions (in accordance with the Tariffed Distributor’s Access Arrangement) of the distribution pipeline.	
tariffed distribution extensions	Extensions (in accordance with the Tariffed Distributor’s Access Arrangement) of the distribution pipeline (including, for the avoidance of doubt, the distribution pipeline for the Murray Valley) provided that significant extensions do not become tariffed distribution extensions if the Tariffed Distributor elects pursuant to its Access Arrangement for such to occur.	
tariffed distribution pipeline	The Tariffed Distributor’s distribution pipeline including (for the avoidance of doubt) tariffed distribution extensions and tariffed distribution expansions.	
tariffed distribution services	(a)	Allowing injection of gas into distribution injection points; 
(b)	conveyance of gas from distribution injection points to distribution supply points; and
(c)	allowing withdrawal of gas at distribution supply points; 
which incorporate:	
	(d)	providing up to 20 metres of a distribution mains extension for servicing a distribution supply point assigned to distribution tariff V;	
	(e)	providing a distribution connection for a distribution supply point assigned to distribution tariff V within a Customer’s premises and less than 20 metres from the service entry point on the boundary of the Customer’s premises; 	
	(f)	providing a standard meter at a distribution supply point assigned to distribution tariff V,	
	except to the extent that:	
	(g)	before the start of the initial regulatory period, either Gascor or a Tariffed Distributor and the Customer have agreed in writing that specific pricing applies to that service; or	
	(h)	after the start of the initial regulatory period the Tariffed Distributor and the Customer agree in writing or in such other form as approved by the Regulator that the service is not to be a tariffed distribution service; or 
(i)	the services are provided to a distribution transfer point.	
Tariffed Distributors	(a)	Stratus (Gas) Pty Ltd (ACN 079 089 099);
(b)	Multinet Energy Pty Ltd (ACN 079 088 930); and
(c)	Westar (Gas) Pty Ltd (ACN 079 089 008).	
Tariffed Franchise Customer	A Franchise Customer who withdraws gas at a distribution supply point or a transmission supply point.	
Tariffed Retailer	(a)	Kinetik (Gas) Pty Ltd (ACN 079 089 188); 
(b)	Ikon (Gas) Pty Ltd (ACN 079 089 553); and 
(c)	Energy 21 (Gas) Pty Ltd (ACN 079 089 213),
and includes those entities acting as principal, agent or as a combination of principal and agent.	
tariffed retail 
services 	The supply and sale of gas by a Tariffed  Retailer to a Tariffed
Franchise Customer, either as principal, agent or a combination of principal and agent, except to the extent that after the start of the initial regulatory period, the Tariffed Retailer and the Tariffed Franchise Customer agree in writing or in other such form approved by the Regulator that the service is not to be a tariffed retail service.	
tariffed services	(a)	Tariffed VENCorp services;
(b)	tariffed transmission services;	
	(c)	tariffed distribution services; and
(d)	tariffed retail services.	
tariffed transmission expansions 	An expansion (in accordance with TPA’s Access Arrangement) of the transmission pipeline. 	
tariffed transmission extension	An extension (in accordance with TPA’s Access Arrangement) of the transmission pipeline (including, for the avoidance of doubt, the transmission pipeline for the Murray Valley) provided that significant extensions only become tariffed transmission extensions if, pursuant to TPA’s Access Arrangement, such occurs.	
tariffed transmission pipeline	TPA’s transmission pipeline  including (for the avoidance of doubt) tariffed transmission extensions and tariffed transmission expansions.	
tariffed transmission services	Making the tariffed transmission pipeline available to VENCorp for VENCorp to operate in accordance with the MSO Rules,
except to the extent that:
(a)	before the start of the initial regulatory period, GTC or TPA and the Customer have agreed in writing that specific pricing applies to that service;
(b)	after the start of the initial regulatory period, TPA and the Customer agree in writing or as otherwise approved by the Regulator that the service is not to be a tariffed transmission service; or
(c)	the services are provided to a transmission transfer point.	
tariffed VENCorp services	The services performed by VENCorp that are set out in the MSO Rules.	
total revenue	The same meaning as in the Access Code.	
TPA	Transmission Pipelines Australia Pty Ltd (ACN 079 089 268) and (where applicable) Transmission Pipelines Australia (Assets) Pty Ltd (ACN 079 136 413).	
Trade Practices Act	The Trade Practices Act (Cth) 1974.	
transfer point	A point at which gas is transferred from:
(a)	a transmission pipeline to a transmission pipeline:	
	(b)	a transmission pipeline to a distribution pipeline;	
	(c)	a distribution pipeline to a transmission pipeline; or	
	(d)	a distribution pipeline to a distribution pipeline.	
transmission connection facilities	Any gas equipment at a transfer point or a supply point  allowing the flow of gas between TPA’s transmission pipeline and:
(a)	another transmission pipeline;	
	(b)	a distribution pipeline; or
(c)	a Customer.	
transmission delivery tariff D	A transmission tariff which applies to tariffed transmission services, which is calculated by reference to gas withdrawn at a transmission supply point in a transmission delivery zone, and comprises a transmission volume tariff component, in $/GJ for GJs of gas withdrawn in the calendar year, and a transmission demand tariff component, in $/GJ for 5 day withdrawal MDQ.	
transmission delivery tariff V	A transmission tariff which applies to tariffed transmission services, which is calculated by reference to gas withdrawn at a transmission supply point in a transmission delivery zone and comprises transmission volume tariff components.	
transmission demand tariff component	The tariff component of the transmission injection tariff, in $/GJ for 5 day injection MDQ, and a tariff component of transmission delivery tariff D, the transmission pipeline supply point tariff, and the incremental tariff for tariffed transmission extension, in $/GJ for 5 day withdrawal MDQ.	
transmission injection point	A point at which gas is injected into a tariffed transmission pipeline.	
transmission injection tariff	A transmission tariff which applies to tariffed transmission services, which is calculated by reference to gas injected at a transmission injection point.	
transmission pipeline	The same meaning as in the GIA.	
transmission pipeline supply point	A transmission supply point from which gas is withdrawn for injection into another transmission pipeline and comprising:
(a)	the Carisbrook transmission supply point supplying the Wimmera transmission pipeline;
(b)	the Chiltern Valley transmission supply point supplying the Murray Valley transmission pipeline; or
(c)	the Barnawartha transmission supply point supplying the Interconnect as described in TPA’s Access Arrangement. 	
transmission pipeline supply point tariff	A tariff which applies to tariffed transmission services, which is calculated by reference to gas withdrawn at a transmission pipeline supply point, and comprises a transmission volume tariff component, in $/GJ for GJs of gas delivered in the calendar year, and a transmission demand tariff component, in $/GJ for 5 day withdrawal MDQ.	
transmission supply point	A supply point on a tariffed transmission pipeline.	
transmission tariffs	Tariffs for tariffed transmission services, comprising transmission delivery tariff D, transmission delivery tariff V, the transmission injection tariff, the incremental tariff for tariffed transmission extension and the transmission pipeline supply point tariff..	
transmission transfer point	A transfer point, except a transmission pipeline supply point, between a transmission pipeline by means of which  TPA provides services and a transmission pipeline by means of which another transmission pipeline owner provides services.	
transmission volume tariff component	A tariff component of transmission delivery tariff V in $/GJ for GJs of gas delivered in the peak period or in the calendar year, and a tariff component of transmission delivery tariff D; the transmission pipeline supply point tariff; and the incremental tariff for tariffed transmission extension, in $/GJs of gas delivered in the calendar year.	
transmission zone	An area defined as at 9 December 1997 in paragraph (a) of schedule 3.	
unanticipated system expansion	Tariffed transmission expansions not included in the calculations of the initial transmission tariffs and of the value of XT in the initial regulatory period.	
VENCorp	The same meaning as in the GIA.	
VENCorp tariffs	Tariffs for tariffed VENCorp services.	
VENCorp total annual costs	The total costs incurred by VENCorp in a regulatory year associated with the provision of tariffed VENCorp services excluding any opportunity costs and amounts charged to VENCorp for tariffed transmission services 	

10.2	Principles of interpretation
(a)	Unless the contrary intention appears, these principles of interpretation apply to this Order:
(1)	words denoting persons include unincorporated associations, firms, governments and governmental agencies; 
(2)	a reference to a person includes that person’s agents, successors and permitted assigns, persons who have control over any assets of a person and receivers, managers, trustees, administrators, liquidators and similar persons appointed over:
(A)	a person; or
(B)	any assets of a person;
(3)	headings are only inserted for convenience and do not affect the interpretation of this Order; and
(4)	a reference to an agreement, document or regulatory instrument is a reference to that agreement, document or regulatory instrument as varied from time to time and includes any schedules or attachments to the agreement or document. 
(b)	All tariffs and tariff components calculated under this Order must be rounded to the accuracy, in terms of the number of decimal places, required by the relevant Regulated Entity’s charging and billing systems.
(c)	A tariff which has been calculated and rounded under the principles in clause 10.2(b) must not be rounded to a different level of accuracy when utilised in calculations made under this Order.
(d)	All values used in calculations made under this Order, except those values to which clauses 10.2(b) and (c) apply, must not be rounded.
(e)	When a calculation is required under this Order:
(1)	regulatory year “t” is the regulatory year in respect of which the calculation is being made;
(2)	regulatory year “t-1” is the regulatory year immediately preceding regulatory year “t”; and
(3)	regulatory year “t-2” is the regulatory year immediately preceding regulatory year “t-1”.

SCHEDULE 1
1.	INITIAL TRANSMISSION TARIFFS
(a)	Transmission injection tariff
Injection at Longford Injection Point
1	2	3	4	
Tariff No.	For withdrawal in a transmission zone or at a 
transmission pipeline supply point	Transmission demand tariff component ($/GJ, for 5 day injection MDQ)	Matched injection factor 	
1	All except La Trobe and Lurgi transmission zones	2.260		
2	LaTrobe	2.260	0.293	
3	Lurgi	2.260	0.324	

To decide what transmission delivery tariff applies, refer to:
(1)	schedule 3, which prescribes what transmission zone the supply points are in; and
(2)	paragraph (b) of schedule 4 to determine whether transmission delivery tariff D or transmission delivery tariff V applies to the supply point in a transmission zone.
(b)	Transmission delivery tariff V
	1	2	3	4	5	
	Tariff no.	Transmission zone	Transmission volume tariff component - peak period ($/GJ)	Transmission volume tariff component - calendar year($/GJ)	Matched with-drawal factor	
	1
3
4
5
6
7
8
	LaTrobe
Lurgi
Metro
Calder
South Hume
Echuca
North Hume
	0.079
0.259
0.215
1.367
0.390
1.307
1.502
	0.053
0.131
0.079
0.262
0.106
0.254
0.229

0.5	

(c)	Transmission delivery tariff D
	1	2	3	4	5			
	Tariff no.	Transmission zone	Transmission demand tariff component ($/GJ, for 5 day withdrawal MDQ)	Transmission volume tariff component - calendar year($/GJ)
	Matched with-drawal factor	
	1
3
4
5
6
7
8
	LaTrobe
Lurgi
Metro
Calder
South Hume
Echuca
North Hume
	1.407
4.018
3.765
23.716
8.624
22.967
25.121
	0.053
0.131
0.079
0.262
0.106
0.254
0.229

0.5

(d)	Transmission pipeline supply point tariff
	1	2	3	4	5	
	Tariff no.	Transmission pipeline supply point	Transmission demand tariff component ($/GJ, for  5 day withdrawal MDQ)	Transmission volume tariff component -calendar year($/GJ)	Matched with-drawal factor	
	1
2
3	Carisbrook
Chiltern Valley
Barnawartha	19.495
21.728
20.618	0.286
0.214
0.225	
0.5	

(e)	Incremental tariff for tariffed transmission extension
(1)		1	2	3	4	
	Tariff No.	Tariffed transmission extension	Transmission demand tariff component, ($/GJ, for 5 day withdrawal MDQ)	Transmission volume tariff component - calendar year ($/GJ)	
	1	Murray Valley	55.428	0.115	
(2)	Tariff no. 1 in the above table is incremental to transmission pipeline supply point tariff no. 2 in the table in paragraph 1(d) of this schedule 1.
(f)	Matched withdrawal factors
The matched withdrawal factor in paragraphs 1(b), (c) and (d) above applies where a quantity of gas equivalent to a quantity of gas withdrawn at a supply point in the relevant transmission zone  was injected from New South Wales at Barnawartha by or on behalf of the Customer receiving tariffed transmission services in connection with the withdrawal of gas  at that supply point.
(g)	A tariff component which is charged to a Customer by applying a matched withdrawal factor is not taken into account in deciding TPA’s revenues, tariffs or tariff components used in schedule 5 in deciding whether TPA’s tariffs or tariff components comply with the principles and formulas in schedule 5.
(h)	Billing parameters
Transmission tariffs are charged in accordance with the billing parameters defined below.
(1)	Except where otherwise agreed between TPA and the Customer, the Customer will be charged monthly.
(2)	Transmission volume tariff components applying to the calendar year are charged in accordance with the following procedure:
(A)	for a billing period between January and November, the monthly charge is calculated by applying the relevant tariff components to EMCA, where EMCA is a monthly allocation, using a load profile, of forecast usage in the calendar year for regulatory year “t”, using either:
(I)	the Customer’s actual load profile and usage in the calendar year for regulatory year “t-1”; or
(II)	a quantity agreed between TPA and the Customer.
(B)	for the December billing period, the monthly charge is calculated by applying the following:
MCA=AACA-CBTDA
where:
MCA is the charge for the December billing period in regulatory year “t”.
CBTDA is the sum of the charges for all prior billing periods of regulatory year “t”.
AACA is the annual charge calculated by applying the relevant tariff components to the actual usage in the calendar year for regulatory year “t”.
(3)	Transmission volume tariff components applying to the peak period and transmission demand tariff components, whichever applicable, are charged in aggregate according to the following procedure:
(A)	for a billing period between January and November, the monthly charge is calculated by applying the relevant tariff components  to EMC, where EMC is:
(i)	for a transmission demand tariff component of the transmission injection tariff, a monthly allocation, using a load profile, of forecast 5 day injection MDQ for regulatory year “t”, using either:
(I)	the Customer’s actual load profile and 5 day injection MDQ for regulatory year “t-1”; or
(II)	a quantity agreed by TPA and the Customer; and
(ii)	for a transmission demand tariff component of the transmission delivery tariff D, a monthly allocation, using a load profile, of forecast 5 day withdrawal MDQ for regulatory year “t”, using either:
(I)	the Customer’s actual load profile and 5 day withdrawal MDQ for regulatory year “t-1”; or
(II)	a quantity agreed between TPA and the Customer; and
(iii)	for a transmission volume tariff component applying to the peak period, a monthly allocation, using a load profile, of forecast usage in the peak period for regulatory year “t”, using either:
(I)	the Customer’s actual load profile and usage in the peak period for regulatory year “t-1”; or
(II)	a quantity agreed between TPA and the Customer.
(B)	for the December billing period, the monthly charge is calculated by applying the following formula:
MC =AAC - CBTD
where:
MC is the charge for the December billing period in regulatory year “t”.
CBTD is the sum of the charges for all prior billing periods of regulatory year “t”.
AAC is the annual charge calculated by applying the relevant tariff components to EAD.
where EAD is:
(i)	for a transmission demand tariff component of the transmission injection tariff, the actual 5 day injection MDQ for regulatory year “t”;
(ii)	for a transmission demand tariff component of transmission delivery tariff D, the actual 5 day withdrawal MDQ for regulatory year “t”; and
(iii)	for a transmission volume tariff component applying to the peak period, the actual usage in the peak period for regulatory year “t”.

2.	INITIAL DISTRIBUTION TARIFFS
To decide what distribution tariff applies at a distribution supply point, refer to:
(1)	schedule 3, which prescribes what distribution zone the distribution supply point is in; and
(2)	paragraph (a) of schedule 4 to determine whether distribution tariff V or distribution tariff D applies to the distribution supply point.
(a)	Multinet
(1)	Distribution Tariff V
Distribution fixed tariff component - $0.0688/day
1	2	3	
Consumption range
(GJ/day)	Distribution volume tariff component - peak
period ($/GJ)	Distribution volume tariff component
  - off-peak period ($/GJ)	
0-0.1	4.18	3.69	
>0.1-0.2	3.08	2.62	
>0.2-1.4	1.42	1.20	
>1.4	0.64	0.54	

(2)	Distribution Tariff D
1	2	
annual MHQ
(GJ)	Distribution demand tariff component($/GJ) 	
0-50	437	
>50	79	

(b)	Stratus 
(1)	Distribution Tariff V
Stratus North 
Distribution fixed tariff component- $0.0688/day
1	2	3	
Consumption range
(GJ/day)	Distribution volume tariff component - peak period ($/GJ)	Distribution volume tariff component -
  off-peak period ( $/GJ)	
0-0.1	3.98	3.49	
>0.1-0.2	3.73	3.24	
>0.2-1.4	1.80	1.53	
>1.4	0.85	0.72	

Stratus Central 
Distribution fixed tariff component- $0.0688/day
1	2	3	
Consumption range
(GJ/day)	Distribution volume tariff component - peak period ($/GJ)	Distribution volume tariff component
-  off-peak period ($/GJ)	
0-0.1	4.94	4.44	
>0.1-0.2	3.44	2.95	
>0.2-1.4	2.53	2.19	
>1.4	0.85	0.72	

Stratus Murray 
Distribution fixed tariff component- $0.0983/day
1	2	3	
Consumption range
(GJ/day)	Distribution volume tariff component - peak period ($/GJ)	Distribution volume tariff component
-  off-peak period ($/GJ)	
0-0.2	3.07	2.61	
>0.2-1.4	2.51	2.13	
>1.4	1.01	0.87	

(2)	Distribution Tariff D
Stratus North Central
1	2	
annual MHQ
(GJ)	Distribution demand tariff component ($/GJ)	
0-10	764	
>10-50	487	
>50	89	

Stratus Murray
1	2	
annual MHQ
(GJ)	Distribution demand tariff component ($/GJ)	
0-10	916	
>10-50	584	
>50	107	

(c)	Westar 
(1)	Distribution Tariff V
Distribution fixed tariff component- $0.0688/day
Westar Central 
1	2	3	
Consumption range
(GJ/day)	Distribution volume tariff component - peak period ($/GJ)	Distribution volume tariff component 
- off-peak period ($/GJ)	
0-0.1	5.04	4.55	
>0.1-0.2	3.51	3.02	
>0.2-1.4	2.16	1.84	
>1.4	0.81	0.69	

Westar West 
1	2	3	
Consumption range (GJ/day)	Distribution volume tariff component - peak period ($/GJ)	Distribution volume tariff component - 
off-peak period ($/GJ)	
0-0.1	4.00	3.51	
>0.1-0.2	3.51	3.02	
>0.2-1.4	2.16	1.84	
>1.4	0.81	0.69	

(2)	Distribution Tariff D
1	2	
annual MHQ
 (GJ)	Distribution demand tariff component ($/GJ)	
0-10	787	
>10-50	537	
>50	284	

(d)	Billing parameters
Distribution tariffs are charged in accordance with the billing parameters defined below.
(1)	Except where otherwise agreed between the Tariffed Distributor and the Customer, the Customer will be charged:
(A)	two monthly, in the case of distribution tariff V; and
(B)	monthly, in the case of distribution tariff D.
(2)	The distribution fixed tariff components and consumption ranges shown in paragraphs 2(a) to (c), as applicable, are daily amounts. The distribution fixed tariff component or consumption range applied to calculate a charge for a billing period shall be the tariff component or consumption range shown in paragraph 2(a) to (c), as applicable, multiplied by the number of days in the billing period.
(3)	Distribution volume tariff components
(A)	Distribution volume tariff components are charged according to the actual GJs of gas withdrawn in the billing period, or an estimate of the GJs of gas withdrawn in the billing period which is acceptable to the Tariffed Distributor.
(B)	Where some of the days in the billing period are in the peak period:
(i)	if the total number of days in the billing period is less than 100, the GJs of gas withdrawn in the peak period are:

where:
GPP is the GJs of gas withdrawn in the peak period;
TAG is the total actual GJs of gas withdrawn in the billing period, or an estimate of the total GJs of gas withdrawn in the billing period which is acceptable to the Tariffed Distributor;
PPBP is the number of days in the billing period which are in the peak period; and
TBP is the total number of days in the billing period.
(ii)	if the total number of days in the billing period is greater than or equal to 100, the GJs of gas withdrawn in the peak period are:
GPP = TAG x 
where:
GPP is as defined in paragraph 2(d)(3)(B)(i) of this  schedule 1;
TAG is as defined in paragraph 2(d)(3)(B)(i) of this  schedule 1;
PPBP is as defined in paragraph 2(d)(3)(B)(i) of this schedule 1; and
TBP is as defined in paragraph 2(d)(3)(B)(i) of this  schedule 1.
(iii)	the GJs of gas withdrawn in the off-peak period are:
GOPP = TAG - GPP
where:
GOPP is the GJs of gas withdrawn in the off-peak period;
TAG is as defined in paragraph 2(d)(3)(B)(i) of this schedule 1; and
GPP is: 
(I)	where the total number of days in the billing period is less than 100, calculated in accordance with paragraph 2(d)(3)(B)(i) of this schedule 1; and
(II)	where the total number of days in the billing period is greater than or equal to 100, calculated in accordance with paragraph 2(d)(3)(B)(ii) of this schedule 1.
(iv)	If the total number of days in the billing periods is greater than or equal to 100, then a 5% surcharge is added to each tariff component to be paid by a Customer under paragraphs 2(a), 2(b) and 2(c) of this schedule 1.
(4)	Distribution demand tariff components
(A)	Except where otherwise agreed between the Tariffed Distributor and the Customer, the Customer will be charged monthly.
(B)	Distribution demand tariff components are charged according to the following formula:
MC = EAC - CBTD
RBP
where:
MC is the charge for a particular month in regulatory year “t”.
EAC is the estimated annual charge calculated by applying the relevant tariff components to EAD;
CBTD is the sum of the charges for all prior billing periods of regulatory year “t”;
RBP is the remaining billing periods in regulatory year “t”, as set out below:
Month	RBP	
January	12	
February	11	
March	10	
April	9	
May	8	
June	7	
July	6	
August	5	
September	4	
October	3	
November 	2	
December	1	

EAD is:
(i)	for billing periods between January and September, the higher of:
(I)	the forecast annual MHQ for regulatory year “t”; and
(II)	the annual MHQ, as measured to date during regulatory year “t”,
where the forecast annual MHQ for regulatory year “t” is either:
(III)	the actual annual MHQ for regulatory year “t-1”; or
(IV)	a quantity agreed between the Tariffed Distributor and the Customer.
(ii)	for billing periods between October and December, the actual annual MHQ for regulatory year “t”.
(C)	Where a Consumer is connected at a distribution supply point during a regulatory year:
(i)	the first month’s charge after the Consumer is connected is calculated as:
initial monthly charge =	 x  x EAC 	
	RBP	
where:
RDM is the remaining days in that month on the day that the Consumer first withdrew gas at that distribution supply point.
RDY is the remaining days in the calendar year on the day that the Consumer first withdrew gas at that distribution supply point.
EAC is the estimated annual charge as defined in paragraph 2(d)(4)(B) of this schedule 1.
RBP is the remaining billing periods, as set out in paragraph 2(d)(4)(B) of this  schedule 1.
(ii)	the monthly charge for subsequent months in that year is calculated in accordance with the following formula:
monthly charge =	(x EAC) - CBTD	
	RBP	
where:
RDY is the remaining days in the calendar year as defined in paragraph 2(d)(4)(C)(i) of this schedule 1.
EAC is the estimated annual charge as defined in paragraph 2(d)(4)(B) of this schedule 1;
CBTD is the charges billed to date is as defined in paragraph 2(d)(4)(B) of this schedule 1; and
RBP is the remaining billing periods is as defined in paragraph 2(d)(4)(B) of this schedule 1.
(D)	Where a Consumer who withdraws gas at a distribution supply point ceases to withdraw gas at that distribution supply point in a month:
(i)	the Tariffed Distributor may charge the Customer in respect of that distribution supply point, for the whole of the month in which the Consumer ceased withdrawal of gas;
(ii)	the Tariffed Distributor must not charge the Customer in respect of that distribution supply point, for any month after the month in which the Consumer ceased withdrawal of gas;
(iii)	where another Consumer starts to withdraw gas at that distribution supply point, the quantity of forecast highest MHQ for the year for that distribution supply point must be agreed between the Tariffed Distributor and the Customer in respect of that distribution supply point.
(E)	Where a Consumer who withdraws gas at a distribution supply point ceases to be a Customer of a particular Retailer during a month and becomes:
(i)	a Customer of another Retailer; or
(ii)	a Customer of the Tariffed Distributor, 
the Tariffed Distributor must charge: 
(iii)	the Retailer of whom the Consumer became a Customer in that month; or
(iv)	the Customer who became a Customer of the Tariffed Distributor in that month, 
for that month.
(5)	Unmetered tariff components
Where a distribution supply point has been assigned to distribution tariff V under paragraph (a)(11) of the schedule 4, because it is an unmetered distribution supply point, the distribution supply point is taken not to have withdrawn gas for charging purposes.

3.	INITIAL MAXIMUM UNIFORM TARIFFS
To determine what maximum uniform tariff applies in respect of a distribution supply point, refer to paragraph (c) of schedule 4.  
(a)	Domestic tariffs
(1)	Tariffs 01/02 - Multiple Residential
Tariff 01: Meter/Regulator capacity up to 50 m3/hr
Tariff 02: Meter/Regulator capacity over 50 m3/hr
Supply Charge:
Tariff 01 $26.08
Tariff 02 $88.54
Commodity Charge:
All gas @ 0.8815 c/MJ
(2)	Tariff 03 - Domestic General
Supply Charge: $12.82
Commodity Charge:
0 - 4000 MJ @ 0.6875 c/MJ
> 4000 MJ @ 0.8073 c/MJ (off-peak), 0.8763 c/MJ (peak)
(3)	Tariffs 04/05 - Residential Bulk Hot Water Master Meter
Tariff 04: Meter/Regulator capacity up to 50 m3/hr
Tariff 05: Meter/Regulator capacity over 50 m3/hr
Supply Charge:
Tariff 04 $26.08
Tariff 05 $88.54
Commodity Charge:
All gas @ 0.8815 c/MJ
(4)	Tariffs 10/11 - Bulk Supply to flats for storage water heating
Tariff 10: Meter/Regulator capacity up to 50 m3/hr
Tariff 11: Meter/Regulator capacity over 50 m3/hr
Supply Charge:
Tariff 10 $26.08
Tariff 11 $88.54
Commodity Charge:
All gas @ 0.9558 c/MJ
(5)	Tariff 09 - Gas lights, unmetered
Standard two mantles light - $26.96. 
Additional mantles - $13.48.
(6)	Tariff M3 - Murray Valley
Supply Charge: $15.62
Commodity Charge:
All gas @ 1.0270 c/MJ
(b)	Commercial tariffs
(1)	Tariff 13 - up to 100 m3/hr capacity meter/regulator
Supply Charge (per 2 months): $19.02
Commodity Charge:
0 - 100 000 MJ @  0.8433 c/MJ (off-peak), 0.9161 c/MJ (peak)
> 100,000 - 550 000 MJ @ 0.6396 c/MJ (off-peak), 0.7542 c/MJ (peak)
> 550 000 MJ @ 0.4257 c/MJ (off-peak), 0.4387 c/MJ (peak)
(2)	Tariff 14 - 100.1 m3/hr to 850 m3/hr capacity meter/regulator
Supply Charge: $174.26
Commodity Charge:
0 - 100 000 MJ @ 0.7905 c/MJ (off-peak), 0.8581 c/MJ (peak)
> 100,000 - 550 000 MJ @ 0.6396 c/MJ (off-peak), 0.7542 c/MJ (peak)
> 550 000 MJ @ 0.4257 c/MJ (off-peak), 0.4387 c/MJ (peak)
(3)	Tariff 63 - Ministry of Housing Tariff
Commodity Charge - all gas 0.4642 c/MJ
(4)	Tariff M6 - Murray Valley up to 100 m3/hr capacity meter/regulator
Supply Charge: $18.72
Commodity Charge:
All gas @ 0.8173 c/MJ
(5)	Tariff M7 - Murray Valley 100.1 m3/hr to 850 m3/hr capacity meter/regulator
Supply Charge: $171.46
Commodity Charge:
All gas @ 0.7403 c/MJ
(c)	Industrial Tariffs
(1)	Tariff 21 - up to 100 m3/hr capacity meter/regulator
Supply Charge: $19.02
Commodity Charge:
0 - 100,000 MJ @ 0.8433 c/MJ (off-peak), 0.9161 c/MJ (peak)
> 100,000 - 550,000 MJ @ 0.6396 c/MJ (off-peak), 0.7542 c/MJ (peak)
>550,000 MJ @ 0.4257 c/MJ (off-peak), 0.4387 c/MJ (peak)
(2)	Tariff 22 - 100.1 m3/hr to 850 m3/hr capacity meter/regulator
Supply Charge: $174.26
Commodity Charge:
0 - 100,000 MJ @ 0.7905 c/MJ (off-peak), 0.8581 c/MJ (peak)
>100,000 - 550,000 MJ @ 0.6396 c/MJ (off-peak), 0.7542 c/MJ (peak)
>550,000 MJ @ 4257 c/MJ (off-peak), 0.4387 c/MJ (peak)
(3)	Tariff 08 - Standby Power Generation Tariff
Supply charge - $372.07 per GJ input rating of gas engine.
Commodity Charge: as specified in Tariffs 13, 14, 21 or 22, as appropriate.
(4)	Tariff M8 - Murray Valley up to 100 m3/hr capacity meter/regulator
Supply Charge: $18.72
Commodity Charge:
All gas @ 0.8173 c/MJ
(5)	Tariff M9 - Murray Valley 100.1 m3/hr to 850 m3/hr capacity meter/regulator
Supply Charge: $171.46
Commodity Charge:
All gas @ 0.7403 c/MJ

(d)	Contract tariff
As specified in the contract between the Tariffed Retailer and the Contract Franchise Customer.
(e)	Billing parameters
Maximum uniform tariffs are charged in accordance with the billing parameters defined below.
(1)	Except where otherwise agreed between the Tariffed Retailer and the Customer, the Customer will be charged on a two monthly basis unless otherwise indicated in the tariff.
(2)	The Supply Charges and the consumption ranges of Commodity Charges shown in paragraphs 3(a) to (c), as applicable, are two monthly amounts. The Supply Charge or consumption range applied to calculate a charge for a billing period of other than two months shall be a pro-ration of the Supply Charge or consumption range shown in paragraph 3(a) to (c), as applicable.
(3)	Commodity Charges
(A)	Commodity Charge tariff components are charged according to the actual MJs of gas withdrawn in the billing period, or an estimate of the MJs of gas withdrawn in the billing period determined by the Tariffed Retailer in accordance with the applicable regulatory instrument.
(B)	Where some of the days in the billing period are in the peak period:
(i)	the MJs of gas withdrawn in the peak period are:

where:
GPP is the MJs of gas withdrawn in the peak period;
TAG is the total actual MJs of gas withdrawn in the billing period, or an estimate of the total MJs of gas withdrawn in the billing period determined by the Tariffed Retailer in accordance with the applicable regulatory instrument;
PPBP is the number of days in the billing period which are in the peak period; and
TBP is the total number of days in the billing period.
(ii)	the MJs of gas withdrawn in the off-peak period are:
GOPP = TAG - GPP
where:
GOPP is the MJs of gas withdrawn in the off-peak period;
TAG is as defined in paragraph 3(e)(3)(B)(i) of this schedule 1; and
GPP is as defined in
paragraph 3(e)(3)(B)(i) of this schedule 1.
(C)	Commodity Charge tariff components of maximum uniform tariffs 10 and 11 are charged in accordance with the billing parameters defined below:
(i)	where the Customer’s consumption of gas is measured by the Tariffed Retailer solely by reference to the Customer’s hot water meter, the relevant tariff component in $/MJ, is converted into a rate per litre by multiplying the tariff component by the factor 0.49724 and is charged per litre of hot water consumed.
(ii)	where the Customer’s consumption of gas is measured by the Tariffed Retailer by reference both to a central cold water meter connected to the bulk hot water installation and to the Customer’s hot water meter, the relevant tariff component, in $/MJ, is applied to the chargeable quantity calculated according to the following formula:
CQG =  QHW * (QGD/QW)
where:
CQG is the chargeable quantity of gas;
QGD is the quantity of gas, in MJs, measured by the meter at the distribution supply point to the bulk hot water installation;
QW is the quantity of water, in litres, measured at the central cold water meter connected to the bulk hot water installation; and
QHW is the quantity of water, in litres, measured at the Customer’s hot water meter.
(f)	Nothing in this Order prevents different maximum uniform tariffs from applying in the Murray Valley

4.	INITIAL VENCORP TARIFFS
(a)	VENCorp Tariffs
(1)	Registration	$30/day
(2)	Metering data management
VENCorp metering data management tariffs are charged according to the type of meter that is read by VENCorp -
(A)	for a meter at a transmission supply point:	
$7/day for each Market Participant provided with services in connection with that meter; and
(B)	for a meter at a distribution supply point assigned to distribution tariff D:	
$2.40/day.
(3)	Commodity
VENCorp commodity tariffs are charged according to the assignment of the supply point to which gas is supplied: 
(A)	for a supply point assigned to either transmission delivery tariff D or distribution tariff D - $0.0308/GJ; and
(B)	for a supply point assigned to either transmission delivery tariff V or distribution tariff V - $0.0764/GJ.
(4)	System security: $0.00671/GJ.

(b)	Billing parameters
VENCorp tariffs in this schedule 1 are charged to Market Participants in accordance with the MSO Rules.

SCHEDULE 2
(a)	Initial prices for scheduled excluded transmission services
LNG system security: $1,400,000 per annum.
(b)	Initial prices for scheduled excluded distribution services 
(1)	Charges for disconnection from and reconnection to the distribution pipeline:
(A)	disconnection at the meter by a Tariffed Distributor’s field officer - $15.00.
(B)	meter removal for debt, performed by a licensed gasfitter - $30.00.
(C)	disconnection of supply in the street (generally due to no access to meter) - $80.00.
(D)	disconnection for illegal gas use - $80.00.
(2)	Charges for testing meters at the Customer’s request where the meter accuracy is shown to be within the limits required by the Distribution System Code - $40.00. Where the meter accuracy is shown not to be within the limits required by the Distribution System Code - no charge.
(3)	Charges for providing and installing service pipe to a distribution supply point subject to distribution tariff V more than 20 metres from the premises entry point - $20.55 for each lineal metre over 20 metres.

SCHEDULE 3
(a)	Transmission 
(1)	Transmission Zones

Transmission Zone	Postcodes	
LaTrobe	3840, 3842, 3844, 3847, 3850, 3851, 3852, 3860	
Lurgi	3816, 3818, 3820, 3822, 3823, 3824, 3825	
Metro	3000, 3002, 3003, 3004, 3005, 3006, 3011, 3012, 3013, 3015, 3016, 3018, 3019, 3020, 3021, 3022, 3023, 3024, 3025, 3026, 3027, 3028, 3029, 3030, 3031, 3032, 3033, 3034, 3036, 3037, 3038, 3039, 3040, 3041, 3042, 3043, 3044, 3045, 3046, 3047, 3048, 3049, 3050, 3051, 3052, 3053, 3054, 3055, 3056, 3057, 3058, 3059, 3060, 3061, 3062, 3063, 3064, 3065, 3066, 3067, 3068, 3070, 3071, 3072, 3073, 3074, 3075, 3076, 3078, 3079, 3081, 3082, 3083, 3084, 3085, 3087, 3088, 3089, 3090, 3091, 3093, 3094, 3095, 3096, 3097, 3099, 3101, 3102, 3103, 3104, 3105, 3106, 3107, 3108, 3109, 3111, 3113, 3114, 3115, 3116, 3121, 3122, 3123, 3124, 3125, 3126, 3127, 3128, 3129, 3130, 3131, 3132, 3133, 3134, 3135, 3136, 3137, 3138, 3139, 3140, 3141, 3142, 3143, 3144, 3145, 3146, 3147, 3148, 3149, 3150, 3151, 3152, 3153, 3154, 3155, 3156, 3158, 3159, 3160, 3161, 3162, 3163, 3165, 3166, 3167, 3168, 3169, 3170, 3171, 3172, 3173, 3174, 3175, 3177, 3178, 3179, 3180, 3181, 3182, 3183, 3184, 3185, 3186, 3187, 3188, 3189, 3190, 3191, 3192, 3193, 3194, 3195, 3196, 3197, 3198, 3199, 3200, 3201, 3202, 3204, 3205, 3206, 3207, 3211, 3212, 3214, 3215, 3216, 3217, 3218, 3219, 3220, 3221, 3222, 3223, 3224, 3225, 3226, 3335, 3337, 3338, 3427, 3428, 3429, 3750, 3752, 3754, 3755, 3759, 3760, 3761, 3765, 3766, 3767, 3770, 3777, 3781, 3782, 3783, 3785, 3786, 3787, 3788, 3789, 3791, 3792, 3793, 3795, 3796, 3802, 3803, 3804, 3805, 3806, 3807, 3808, 3809, 3810, 3812, 3813, 3814, 3815, 3910, 3911, 3912, 3913, 3915, 3916, 3918, 3919, 3920, 3921, 3926, 3927, 3928, 3929, 3930, 3931, 3933, 3934, 3936, 3937, 3938, 3939, 3940, 3941, 3942, 3943, 3944, 3975, 3976, 3977, 3978, 3980, 3981, 3984, 3987	
Calder	3340, 3342, 3350, 3352, 3355, 3356, 3357, 3430, 3437, 3444, 3450, 3451, 3460, 3461, 3464, 3465, 3550, 3551, 3555, 3556	
South Hume	3658, 3659, 3660, 3662, 3666, 3751, 3753, 3756, 3757, 3763, 3764, 3775	
Echuca	3561, 3564, 3616, 3618, 3620, 3621, 3623, 3624, 3629, 3630, 3631	
North Hume	3672, 3677, 3683, 3690, 3691, 3694	

(2)	TPA extensions
Zone	Postcodes	
Murray Valley	3636, 3638, 3641, 3644, 3685, 3687, 3730	

(b)	Distribution Zones

Distribution Zones	Postcodes	
Multinet	3004, 3006, 3101, 3102, 3103, 3104, 3105, 3106, 3107, 3108, 3109, 3111, 3113, 3114, 3115, 3116, 3122, 3123, 3124, 3125, 3126, 3127, 3128, 3129, 3130, 3131, 3132, 3133, 3134, 3135, 3136, 3137, 3138, 3140, 3141, 3142, 3143, 3144, 3145, 3146, 3147, 3148, 3149, 3150, 3151, 3152, 3153, 3154, 3155, 3156, 3158, 3159, 3160, 3161, 3162, 3163, 3165, 3166, 3167 3168, 3169, 3170, 3171, 3172, 3173, 3174, 3175 (note 2), 3177, 3178, 3179, 3180, 3181, 3182, 3183, 3184, 3185, 3186, 3187, 3188, 3189, 3190, 3191, 3192, 3193, 3194, 3195, 3196, 3197, 3202, 3204, 3205, 3206, 3207, 3765, 3766, 3767, 3770 (note 3), 3781, 3782, 3783, 3785, 3786, 3787, 3788, 3789, 3791, 3792, 3793, 3795, 3796, 3802	
Stratus North	3561, 3564, 3616, 3618, 3620, 3621, 3623, 3624, 3629, 3630, 3631, 3658, 3659, 3660, 3662, 3666, 3672, 3677, 3683, 3690, 3691, 3694, 3753, 3756, 3757, 3763, 3764, 3775	
Stratus Central	3000, 3002, 3003, 3005, 3050, 3051, 3052, 3053, 3054, 3055 (Note 1), 3056, 3057, 3065, 3066, 3067, 3068, 3070, 3071, 3072, 3073, 3074, 3075, 3076, 3078, 3079, 3081, 3082, 3083, 3084, 3085, 3087, 3088, 3089, 3090, 3091, 3093, 3094, 3095, 3096, 3097 (Note 4), 3099, 3121, 3139, 3198, 3199, 3200, 3201 (Note 5), 3750, 3751, 3752, 3754, 3755, 3759, 3760, 3761, 3777, 3803, 3804 (Note 6), 3805, 3806, 3807, 3808, 3809, 3810, 3812, 3813, 3814, 3815, 3816, 3818, 3820, 3822, 3823, 3824, 3825, 3840, 3842, 3844, 3847, 3850, 3851, 3852, 3860, 3910, 3911, 3912, 3913, 3915, 3916, 3918, 3919, 3920, 3921, 3926, 3927, 3928, 3929, 3930, 3931, 3933, 3934, 3936, 3937, 3938, 3939, 3940, 3941, 3942, 3943, 3944, 3975, 3976, 3977, 3978, 3980, 3981, 3984, 3987 	
Stratus Murray	3636, 3638, 3641, 3644, 3685, 3687, 3730	
Westar Central	3011, 3012, 3013, 3015, 3016, 3018, 3019, 3020, 3021, 3022, 3023, 3024, 3025, 3026, 3027, 3028, 3029, 3030, 3031, 3032, 3033, 3034, 3036, 3037, 3038, 3039, 3040, 3041, 3042, 3043, 3044, 3045, 3046, 3047, 3048, 3049, 3058, 3059, 3060, 3061, 3062, 3063, 3064, 3211, 3212, 3214, 3215, 3216, 3217, 3218, 3219, 3220, 3221, 3222, 3223, 3224, 3225, 3226, 3228, 3335, 3337, 3338, 3427, 3428, 3429	
Westar West	3249, 3250, 3266, 3277, 3280, 3282, 3300, 3305, 3340, 3342, 3350, 3352, 3355, 3356, 3357, 3377, 3380, 3400, 3430, 3437, 3444, 3450, 3451, 3460, 3461, 3464, 3465, 3550, 3551, 3555, 3556	

Notes
(1)	Postcode 3055 is shared between Stratus Central and Westar Central. Westar Central distribution supply points are currently connected at the date of this Order in Galtes Crescent, Southam Street, Morrow Street, Hopetoun Avenue, Moreland Road and Flannery Court.
(2)	Postcode 3175 is shared between Multinet and Stratus Central. Stratus Central distribution supply points are currently connected in Abbotts Road.
(3)	Postcode 3770 is shared between Multinet and Stratus Central. Stratus Central distribution supply points are currently connected in Maddens Lane and the Maroondah Highway.
(4)	Postcode 3097 is shared between Stratus Central and Multinet. Multinet distribution supply points are currently connected in Menzies Road.
(5)	Postcode 3201 is shared between Stratus Central and Multinet. Multinet distribution supply points are currently connected in Wadsley Road.
(6)	Postcode 3804 is shared between Stratus Central and Multinet. Multinet distribution supply points are currently connected in Caithwell Court, Ebeli Cl, Lyala Court and Waterfore Cl.
(c)	Retail Zones

Retailer	Postcodes	
Kinetik	3000, 3002, 3003, 3005, 3024, 3029, 3030, 3050, 3051, 3052, 3053, 3054, 3055 (Note 1), 3056, 3057, 3065, 3066, 3067, 3068, 3070, 3071, 3072, 3073, 3074, 3075, 3076, 3078, 3079, 3081, 3082, 3083, 3084, 3085, 3087, 3088, 3089, 3090, 3091, 3093, 3094, 3095, 3096, 3097 (Note 4), 3099, 3121, 3211, 3212, 3214, 3215, 3216, 3217, 3218, 3219, 3220, 3221, 3222, 3223, 3224, 3225, 3226, 3228, 3249, 3250, 3266, 3277, 3280, 3282, 3300, 3305, 3335, 3337, 3338, 3340, 3342, 3350, 3352, 3355, 3356, 3357, 3377, 3380, 3400, 3427, 3429, 3430, 3437, 3444, 3450, 3451, 3460, 3461, 3464, 3465, 3550, 3551, 3555, 3556, 3750, 3752, 3754, 3759 	
Energy 21	3004, 3006, 3101, 3102, 3103, 3104, 3105, 3106, 3107, 3108, 3109, 3111, 3113, 3114, 3115, 3116, 3122, 3123, 3124, 3125, 3126, 3127, 3128, 3129, 3130, 3131, 3132, 3133, 3134, 3135, 3136, 3137, 3138, 3139, 3140, 3141, 3142, 3143, 3144, 3145, 3146, 3147, 3148, 3149, 3151, 3153, 3154, 3155, 3159, 3181, 3198, 3199, 3200, 3201, 3561, 3564, 3616, 3618, 3620, 3621, 3623, 3624, 3629, 3630, 3631, 3636, 3638, 3641, 3644, 3658, 3659, 3660, 3662, 3666, 3672, 3677, 3683, 3685, 3687, 3690, 3691, 3694, 3730, 3751, 3753, 3755, 3756, 3757, 3760, 3761, 3763, 3764, 3765, 3766, 3767, 3770 (Note 3), 3775, 3777, 3781, 3782, 3783, 3787, 3788, 3789, 3791, 3792, 3793, 3795, 3796, 3803, 3804, 3805, 3806, 3807, 3808, 3809, 3810, 3812, 3813, 3814, 3815, 3816, 3818, 3820, 3822, 3823, 3824, 3825, 3840, 3842, 3844, 3847, 3850, 3851, 3852, 3860, 3910, 3911, 3912, 3913, 3915, 3916, 3918, 3919, 3920, 3921, 3926, 3927, 3928, 3929, 3930, 3931, 3933, 3934, 3936, 3937, 3938, 3939, 3940, 3941, 3942, 3943, 3944, 3975, 3976, 3977, 3978, 3980, 3981, 3984, 3987	
Ikon	3011, 3012, 3013, 3015, 3016, 3018, 3019, 3020, 3021, 3022, 3023, 3025, 3026, 3027, 3028, 3031, 3032, 3033, 3034, 3036, 3037, 3038, 3039, 3040, 3041, 3042, 3043, 3044, 3045, 3046, 3047, 3048, 3049, 3058, 3059, 3060, 3061, 3062, 3063, 3064, 3150, 3152, 3156, 3158, 3160, 3161, 3162, 3163, 3165, 3166, 3167, 3168, 3169, 3170, 3171, 3172, 3173, 3174, 3175 (Note 2), 3177, 3178, 3179, 3180, 3182, 3183, 3184, 3185, 3186, 3187, 3188, 3189, 3190, 3191, 3192, 3193, 3194, 3195, 3196, 3197, 3202, 3204, 3205, 3206, 3207, 3428, 3785, 3786, 3802	

Notes:
(1)	Postcode 3055 is shared between Kinetik and Ikon. Ikon Customers are currently connected in Galtes Crescent, Southam Street, Morrow Street, Hopetoun Avenue, Moreland Road and Flannery Court.
(2)	Postcode 3175 is shared between Ikon and Energy 21. Energy 21 Customers are currently connected in Abbotts Road.
(3)	Postcode 3770 is shared between Energy 21 and Kinetik. Kinetik Customers are currently connected in Maddens Lane and the Maroondah Highway.
(4)	Postcode 3097 is shared between Kinetik and Energy 21. Energy 21 Customers  are currently connected in Menzies Road.
(5)	In the case of Energy 21, see also paragraph 3(f) of schedule 1.

(d)	Zone changes
(1)	The Regulator may amend schedule 3 to:
(A)	accommodate changes that may occur from time to time; or
(B)	make other changes to the schedule 3 that the Regulator considers necessary.
(2)	Notwithstanding any other provision of this Order, the postcodes in this schedule may be amended by the Regulated Entity on notice to the Regulator in the event of error or omission or change by Australia Post.

SCHEDULE 4

(a)	Distribution tariffs 
The rules for assigning a distribution tariff to a distribution supply point are as follows:
(1)	Where a Tariffed Distributor charges for providing tariffed distribution services to a Customer at a distribution supply point under a distribution tariff, the distribution supply point is to be regarded as being assigned to that distribution tariff.
(2)	Each Tariffed Distributor must:
(A)	within 20 business days after the date of this Order, decide the distribution tariff to which each distribution supply point is assigned at the date of this Order; and
(B)	as soon as practicable after deciding the distribution tariff to which a distribution supply point is assigned under paragraph (a)(2)(A) of this schedule 4, notify each Customer to whom tariffed distribution services are provided, of the distribution tariff applicable to each distribution supply point at which the Customer is provided with tariffed distribution services.
(3)	If, after the date of this Order, a Tariffed Distributor becomes aware that a Customer is to be provided with tariffed distribution services at a distribution supply point which did not exist at the date of this Order, the Tariffed Distributor must:
(A)	within 20 business days decide the distribution tariff to which the distribution supply point will be assigned under this schedule 4 based on reasonable estimates of the consumption characteristics of that distribution supply point over the next 12 month period; and
(B)	as soon as practicable after deciding the distribution tariff to which a distribution supply point is assigned under paragraph (a)(3)(A) of this  schedule 4, notify the Customer to whom tariffed distribution services are provided at that distribution supply point of the distribution tariff to which the distribution supply point has been assigned.
(4)	If after, the date of this Order, a Tariffed Distributor becomes aware that the Consumer who receives gas at a distribution supply point has changed, the Tariffed Distributor must:
(A)	within 20 days of becoming aware that the Consumer has changed, decide, based on reasonable estimates of the consumption characteristics at that distribution supply point  over the next 12 month period, whether the distribution supply point  should remain assigned to the distribution tariff to which it had been assigned prior to the Consumer changing, or whether the distribution supply point should be re-assigned to another distribution tariff; and
(B)	where the Tariffed Distributor decides to re-assign the distribution supply point  in accordance with paragraph (a)(4)(A) of this schedule 4, as soon as possible after re-assigning the distribution supply point in accordance with paragraph (a)(4)(A), notify the Customer  to whom tariffed distribution services are provided at that distribution supply point, of the distribution tariff to which that distribution supply point has been re-assigned.
(5)	A distribution supply point will be assigned to distribution tariff D if it meets the following consumption characteristics:
(A)	the quantity of gas withdrawn at that distribution supply point exceeds the annual GJ volume limit; or
(B)	the quantity of gas withdrawn at that distribution supply point exceeds the MHQ demand limit.
(6)	If a distribution supply point is not assigned to distribution tariff D under paragraph (a)(5) of this schedule 4, that distribution supply point is assigned to distribution tariff V.
(7)	If, after the initial assignment of a distribution tariff to a Customer’s distribution supply point, a Tariffed Distributor becomes aware that the quantity of gas withdrawn at that distribution supply point has changed so that the distribution supply point should no longer be assigned to the distribution tariff to which it is currently assigned, the Tariffed Distributor must notify the Customer within 20 business days that the distribution supply point is, subject to paragraphs (a)(8) and (10) of this schedule 4 to be assigned to another distribution tariff. 
(8)	Where a Customer receives notice under paragraph (a)(7) that a distribution supply point is to be reassigned from distribution tariff V to distribution tariff D, it will be assigned to distribution tariff D unless the Customer makes a written request to the Tariffed Distributor to remain on distribution tariff V within 20 business days of receiving the notice and the Tariffed Distributor approves the request.
(9)	Where a distribution supply point is assigned to distribution tariff D :
(A)	the Customer to whom tariffed distribution services are provided at that distribution supply point must pay for a meter which complies with the appropriate metering standard specified in the MSO Rules or Distribution System Code, whichever is applicable, and which is capable of recording MHQ;
(B)	the Customer to whom tariffed distribution services are provided at that distribution supply point must pay an excluded distribution services charge, for providing connection assets and mains extensions that have been previously undertaken for that distribution supply point; and
(C)	the Tariffed Distributor can require the distribution supply point to continue to be assigned to distribution tariff D for a period of up to 1 year from the time of the assignment of the distribution supply point to distribution tariff D.
(10)	A Customer to whom tariffed distribution services are provided at a distribution supply point may require that the distribution supply point will be assigned to distribution tariff D, provided that the Customer:
(A)	agrees to pay for or purchase a meter which complies with the appropriate metering standard, and which is capable of recording MHQ;
(B)	agrees to pay an excluded distribution services charge for providing connection assets and mains extensions that have been previously undertaken for that distribution supply point; and
(C)	agrees to take or pay for a minimum MHQ of 1.15GJ. 
(11)	A distribution supply point which does not have a meter is assigned to Distribution Tariff V, unless otherwise agreed between the Tariffed Distributor and the Customer to whom tariffed distribution services are provided at that distribution supply point.
(b)	Transmission tariffs 
(1)	A Customer in a transmission zone and connected at a distribution supply point is assigned to a transmission tariff such that:
(A)	a distribution supply point assigned to distribution tariff V, is assigned to transmission delivery tariff V; and
(B)	a distribution supply point assigned to distribution tariff D is assigned to transmission delivery tariff D.
(2)	A Customer in a transmission zone and connected at a transmission supply point is assigned to transmission delivery tariff D.
(c)	Maximum uniform tariffs
(1)	The contract tariff applies to each supply point at which a Contract Franchise Customer receives gas.
(2)	A distribution supply point not subject to the contract tariff at which gas is supplied for domestic use is assigned to the domestic tariff. The characteristics of the distribution supply point determine the domestic tariff charged as follows:
(A)	if the distribution supply point supplies gas at a multiple residence, tariffs 01 or 02 apply;
(B)	if the distribution supply point supplies gas at a general domestic residence, tariff 03 applies;
(C)	if the distribution supply point provides for residential bulk hot water, tariffs 04 or 05 apply; and
(D)	if the distribution supply point provides for bulk supply to flats for storage water heating, tariffs 10 and 11 apply.
(3)	A distribution supply point at which gas is supplied to a business, charitable body, government institution, club, religious body or community service organisation which is not subject to the contract tariff, is charged according to commercial tariffs, regardless of whether the gas is used for profit making purposes.
(4)	A distribution supply point at which gas is supplied to a factory, and is not subject to the contract tariff is charged according to industrial tariffs.

SCHEDULE 5

PART A
TRANSMISSION PRICE CONTROL FORMULAE
A.1	Application
Transmission price control formulae apply to TPA.
A.2	Forecasts
Where an application for altered tariffs is made prior to the start of a regulatory year (as contemplated in Clause 6.1(a)), forecasts of demand, volume and revenue for the regulatory year should be based on the best estimates available at the time of application.
Where an application for altered tariffs is made during a regulatory year (as contemplated in Clause 6.1(b)), forecasts of demand, volume and revenue for the regulatory year should be based on the actual results available to date for the regulatory year and the best estimates available for the remainder of the regulatory year.
A.3	Average Revenue Control Formulae
A.3.1	The average revenue control is:
The forecast average transmission tariff (FATT) must be less than the maximum average transmission tariff (MATT),
where:
•	FATT is calculated in accordance with A.3.2, and
•	MATT is calculated in accordance with A.3.3.
A.3.2	FATTt=	
Where:
FATTt	(in $/GJ) is the forecast average transmission  tariff for regulatory year “t”.
FTRt	(in $) is the forecast transmission revenue based on the full transmission tariffs which are being submitted to the Regulator for approval for regulatory year “t” (ie no discounts are to be included).
FTVt	(in GJ) is the forecast calendar year volume of gas transmitted in regulatory year “t”.
A.3.3	If regulatory year “t” is the year ended 31 December 1999 then MATTt is calculated as for FATT1999 .
Otherwise MATTt is calculated using the following formula:
MATTt 	=	ATTt - KTt
where:
MATTt	(in $/GJ) is the maximum average transmission tariff for regulatory year “t”.
ATTt	(in $/GJ) is the average transmission tariff for the regulatory year “t” and adjusted for CPI and expected productivity gains since the commencement of the initial regulatory period, based upon the forecasts at the commencement of the initial regulatory period, as calculated in accordance with A.3.4,
KTt	(in $/GJ) is a retrospective correction factor, calculated in accordance with A.3.5
A.3.4	ATTt-1	(in $/GJ) is determined in accordance with the following:
For regulatory year “t”	ATTt	
2000	= 0.300980.(CPI2000 - XT)	
2001	= 0.297838.(CPI 2001 - XT).(CPI 2000 - XT)	
2002	= 0.298204.(CPI 2002 - XT).(CPI2001 - XT).(CPI2000 - XT)	

where:
CPIt		is the CPI for regulatory year “t”.
XT	is a set factor for average transmission revenue control. XT = 2.7%.
A.3.5	KTt 		(in $/GJ) is a composite correction factor which aims to correct for any differences between forecast and actual quantities, calculated as follows:
KTt		=	. (1+it)
where:
KTat		is calculated in accordance with A.3.6
KTbt 		is calculated in accordance with A.3.7
it	is the Australian Financial Markets Association End of Day 1 Year Swap Reference Rate at 30 September in the regulatory year immediately preceding regulatory year “t” varied by:
where KTt is a negative value, subtraction of 50 basis points; and
where KTt is a positive value, addition of 50 basis points.
FTVt		is defined above.
A.3.6	KTat		=	ETRt-1 - (ETVt-1 . MATTt-1) - EEAt-1
where:
ETRt-1	(in $) is the estimated transmission revenue in regulatory year “t-1”, based on full tariffs as approved by the Regulator for regulatory year “t-1” (ie no discounts are to be included).
ETVt-1	(in GJ) is the estimated volume of gas transmitted in regulatory year “t-1”.
MATTt-1	(in $G/J) is the figure used for MATTt for regulatory year “t-1”.
EEAt-1	(in $) is the estimated expansion allowance for unanticipated system expansion for regulatory year “t-1”. EEAt-1 is calculated as follows:
EEAt-1	=	EETRt-1 - (EETVt-1 . MATTt-1)
where:
EETRt-1	(in $) is the estimated “expansion” transmission revenue in year t-1 which is attributable to unanticipated system expansion. If the regulatory year is the year ending 31 December 1999, then EETRt-1 = 0. Otherwise;
If the regulatory year is after the year ending 31 December 1999, then;
EETRt-1 	=	TTCt-1 . eETDt-1
Where
TTCt-1	(in $/GJ) is the relevant transmission tariff component applicable in year “t-1”
eETDt-1	(in GJ) is the estimated quantity of the relevant transmission tariff component in regulatory year “t-1” attributable to unanticipated system expansion.
	is the sum over all relevant tariff components.
EETVt-1		is the estimated calendar year volume that is attributable to unanticipated system expansion in the year “t-1”.
A.3.7	If the regulatory year “t” is the year ending 31 December 2000, then KTbt = 0, otherwise;
KTbt	=	[ATRt-2-ETRt-2-{(ATV1-2 - ETVt-2).MATTt-2}-{AEAt-2-EEAt-2}].(1+it-1)
where:
ATRt-2	(in $) is the actual transmission revenue in regulatory year “t-2”, based on full tariffs as approved by the Regulator for the regulatory year “t-2” (ie no discounts are to be included).
ETRt-2	(in $) is the figure used for ETRt-1 when calculating KTat for regulatory year “t-1”.
ATVt-2		(in GJ) is the actual volume of gas transmitted in regulatory year “t-2”.
ETVt-2	(in GJ) is the figure used for ETVt-1 when calculating Ktat for regulatory year “t-1”.
MATTt-2	(in $/GJ) is the figure used for MATTt for the regulatory year “t-2”.
AEAt-2	(in $) is the actual allowance for unanticipated system expansion in regulatory year “t-2”. AEAt-2 is calculated as follows:
AEAt-2	=	AETRt-2 - (AETVt-2.MATTt-2)
Where:
AETRt-2	is the actual expansion transmission revenue in year “t-2” attributable to unanticipated system expansion. If the regulatory year is the year ending 31 December 1999 or 31 December 2000, then AETRt-2 = 0, otherwise;
If the regulatory year is after the year ending 31 December 2000, then;
AETRt-2	TTCt-2 . eATDt-2
Where
TTCt-2	(in $/GJ) is the relevant transmission tariff component applicable in year “t-2”
eATDt-2	(in GJ) is the actual quantity of the relevant transmission tariff component in regulatory year “t-2” attributable to unanticipated system expansion.
AETVt-2	is the actual calendar year volume that is attributable to unanticipated system expansion in the year “t-2”.
EEAt-2	(in $) is the figure used for EEAt-1 when calculating Ktat for regulatory year “t-1”.
it-1	is the figure used for it for the regulatory year “t-1”.

A.4	Rebalancing Control Formula
A.4.1	The rebalancing control is:
the approved price of each transmission tariff component (APTC) must be less than the maximum price for each transmission tariff component (MPTC)
where
MPTC is calculated in accordance with A.4.2.
A.4.2	The maximum price for each transmission tariff component is as follows:
	MPTCt		=	APTCt-1 . (CPIt + YT)
where:
MPTCt	(in $/GJ) is the maximum price which can be approved for each transmission tariff component for the regulatory year “t”.
APTCt-1	(in $/GJ) is determined as follows:
1.	if regulatory year “t” is the year ending 31 December 2000 (ie, regulatory year “t-1” is the year ending 31 December 1999), the price of the tariff component as set out in Schedule 1.
2.	if regulatory year “t” is a year ending after 31 December 2000, the most recent actual price approved for each transmission tariff component in the regulatory year “t-1”.
CPIt		is the CPI for regulatory year “t”.
YT		is a set factor for the transmission tariff rebalancing control.
		YT = -1.7%.

PART B
DISTRIBUTION PRICE CONTROL FORMULAE

B.1	Application
Distribution price control formulae apply to each tariffed distributor separately.

B.2 	Forecasts
Where an application for altered tariffs is made prior to the start of a regulatory year (as contemplated in Clause 6.1 (a)), forecasts of demand, volume and revenue for the regulatory year should be based on the best estimates available at the time of application.

Where an application for altered tariffs is made during a regulatory year (as contemplated in Clause 6.1 (b)), forecasts of demand, volume and revenue for the regulatory year should be based on the actual results available to date for the regulatory year and the best estimates available for the remainder of the regulatory year.

B.3 	Average Revenue Formula
B.3.1	The average revenue control is:
	The forecast average distribution tariff (FADT) must be less than the maximum average distribution tariff (MADT)
	where:
FADT is calculated in accordance with B.3.2 and MADT is calculated in accordance with B.3.3.
B.3.2	FADTt	=	
where:
	FADTt	(in $/GJ) is the forecast average distribution tariff for regulatory year “t”.
	FDRt	(in $) is the forecast distribution revenue based on the full distribution tariffs which are being submitted to the Regulator for approval for regulatory year “t” (ie no discounts are to be included).
	FDVt	(in GJ) is the forecast volume of gas distributed in regulatory year “t”.
B.3.3		If regulatory year “t” is the year ended 31 December 1999 then MADTt is calculated as for FADT1999.  
	Otherwise, MADTt is calculated using the following formula:
	MADTt	=	(CPIt - XD) * ADTt-1 - KDt
where:
MADTt (in $/GJ) is the maximum average distribution tariff for regulatory year “t”. 
	CPIt	is the CPI for regulatory year “t”.
	XD	is a set factor for average distribution revenue control, as follows;
a)	3.0% for Westar (Gas) Pty Ltd;
b)	3.0% for Multinet Energy Pty Ltd; and
c)	3.0% for Stratus (Gas) Pty Ltd.
ADTt-1	is the average distribution tariff for the regulatory year “t-1”, re-weighted by forecast volumes for regulatory year “t”, calculated in accordance with B.3.4,
KDt	is a retrospective correction factor, calculated in accordance with B.3.5
B.3.4	ADTt-1	(in $/GJ) is determined in accordance with the following formula:
					FDVt
	where:
	ADTv dz,t-1	(in $/GJ) is the average distribution tariff for Tariff V customers in distribution zone “dz” in regulatory year “t-1”, determined as follows:
(a)	if regulatory year “t” is the year ending 31 December 2000 (ie, regulatory year “t-1” is the year ending 31 December 1999), then ADTv dz,t-1 is the average distribution tariff for Tariff V customers in distribution zone “dz” for the regulatory year ending 31 December 1999 (ADTv dz,1999), as set out in the following table:

Distribution Zone
“dz”	ADTv dz,1999
($/GJ)	
Multinet
Stratus North
Stratus Central
Stratus Murray
Westar Central
Westar West	2.910366
3.387674
3.690488
3.205497
3.837432
3.210069	

(b)	if regulatory year “t” is after the year ending 31 December 2000, then ADTv dz,t-1 is determined in accordance with the following formula:
				ADTv dz,t-1	=	ADTv dz,t-2* (CPIt-1 - XD)
				where:
				ADTv dz,t-2	is determined in the same manner as ADTv dz,t-1 but for the regulatory year “t-1” instead of “t”.
				CPIt-1	is the CPI for regulatory year “t-1”.
				XD	is defined above.
			FDVv dz,t	(in GJ) is the forecast volume of gas in regulatory year “t” for distribution tariff V customers in each distribution zone “dz”. 
	and the summation function represented by:
		refers to summation over all distribution zones.
		ADTdt-1	(in $/GJ annual MHQ) is the average distribution tariff for tariff D customers  in regulatory year “t-1”, determined as follows:
			(a)	if regulatory year “t” is the year ending 31 December 2000 (ie, regulatory year “t-1” is the year ending 31 December 1999), then ADTdt-1 is the average distribution tariff for tariff D customers for the regulatory year ending 31 December 1999 (ADTd1999), as set out in the following table.
Tariffed Distributor	ADTd 1999
($/GJ annual MHQ)	
Multinet
Stratus 
Westar	363.33521
384.70182
477.53142	

(b)	if regulatory year “t” is after the year ending 31 December 2000, then 	ADTdt-1 is determined in accordance with the following formula:
				ADTdt-1 	=	ADTdt-2 * (CPIt-1 - XD)
				where:
				ADTdt-2	is determined in the same manner as ADTdt-1 but for the regulatory year “t-1” instead of “t”.
				CPIt-1	is the CPI for regulatory year “t-1”.
				XD	is defined above.
				FDVdt	(in GJ) is the forecast annual MHQ in regulatory year  “t” for distribution tariff D customers.
and the summation function represented by:
		refers to summation over all distribution zones.
B.3.5	KDt	is a composite correction factor which aims to correct for any differences between forecast and actual quantities, calculated as follows:
	KDt	=		*	
	where:
it	is the Australian Financial Markets Association End of Day 1 Year Swap Reference Rate at 30 September in the regulatory year immediately preceding regulatory year  “t” varied by:
(a)	where KDt is a negative value, subtraction of 50 basis points; and
(b)	where KDt is a positive value, addition of 50 basis points.
	KDat	=	EDRt-1 - (EDVt-1 * MADTt-1)
	where:
	EDRt-1	(in $) is the estimated distribution revenue in
	 		regulatory year “t-1”, based on full distribution tariffs as approved by the Regulator for regulatory year “t-1” (ie no discounts are to be included).
		EDVt-1	(in GJ) is the estimated volume of gas distributed in regulatory year “t-1”.
		MADTt-1	(in $/GJ) is the figure used for MADTt for regulatory year “t-1”.
			KDbt	=	0, if the regulatory year is the year ending 31 December 2000, 
		Otherwise:
			KDbt	=	[ADRt-2 - EDRt-2 - {(ADVt-2 - EDVt-2) * MADTt-2}] * (1 + it-1)	
		where:
		ADRt-2		(in $)	is the actual distribution revenue in regulatory year “t-2”, 	based on full distribution tariffs as approved by the Regulator for 	regulatory year “t-2” (ie no discounts are to be included).
		EDRt-2		(in $)	is the figure used for EDRt-1 when calculating KDat for regulatory year “t-1”.
		ADVt-2		(in GJ) is the actual volume of gas distributed in regulatory year “t‑2”.
		EDVt-2		(in GJ) is the figure used for EDVt-1 when calculating KDat for 	regulatory year  “t-1”.
		MADTt-2	(in $/GJ) is the figure used for MADTt when calculating KDat in regulatory year “t-2”. 
		it-1		is the figure used for it in regulatory year “t-1”. 

B.4	 Rebalancing Control Formula

B.4.1	The rebalancing control is:
	The approved price of each distribution tariff component (APDC) must be less than the maximum price for each distribution tariff component (MPDC).
where 
MPDC is calculated in accordance with B.4.2.
B.4.2		The maximum price for each distribution tariff component is as follows:
	MPDCt	 =	APDCt-1 * (CPIt + YDt)
		where:
MPDCt	(in $/GJ) is the maximum price which can be charged for each distribution tariff component in regulatory year “t”.
APDCt-1 	(in $/GJ) is determined as follows:
(a)	if regulatory year “t” is the year ending 31 December 2000 (ie, regulatory year “t-1” is the year ending 31 December 1999), the price of the tariff component as set out in schedule 1.3,
(b)	if regulatory year “t” is a year ending after 31 December 2000, the most recent actual price approved for each distribution tariff component in the regulatory year “t-1”.
CPIt	is the CPI for regulatory year “t”.
YDt	is a set factor for the distribution tariff rebalancing control, as follows:

Regulatory Year “t”	YDt	
1999
2000
2001
2002
2003	-2%
-2%
-2%
-1%
-1%	

PART C
 
RETAIL PRICE  CONTROL FORMULAE

C.1	Price Control Formulae
	The maximum price for each tariff component of a maximum uniform tariff for a regulatory year is:
	Pt = Pt-1 * RPMt
	where:
Pt 	is the maximum price for the relevant tariff component for regulatory year “t”,
Pt-1 	is determined as follows:
(a)	if regulatory year “t” is the year ending 31 December 2000, the price for the relevant tariff component as set out in paragraph 3 of schedule 1,
(b)	if regulatory year “t” is after the year ending 31 December 2000,  the price for the relevant tariff component for regulatory year “t-1”.
RPMt	is the Retail Price Movement for the tariff class for regulatory year “t” as set out in the following tables.
Tariff Classes 01, 02, 04, 05, 08, 09, 10, 11, M3, M6, M7, M8, M9
		
Tariff Component	RPMt	
Supply 	CPIt	
Commodity  	CPIt	

Tariff Class 03
		
Tariff Component	RPMt	
Supply 	CPIt	
Commodity 		
       First 4 GJ / 2 months - peak period	CPIt - .022	
       First 4 GJ/ 2 months - off peak period	CPIt - .022	
       Over 4 GJ/ 2 months - peak period	CPIt - .022	
       Over 4 GJ/ 2 months - off peak period	CPIt - .100	

Tariff Classes 13/21
		
Tariff Component	RPMt	
Supply 	CPIt	
Commodity 		
       First 100 GJ / 2 months - peak period	CPIt - .044	
       First 100 GJ/ 2 months - off peak period	CPIt - .121	
       Next 450 GJ/ 2 months - peak period	CPIt 	
       Next 450 GJ/ 2 months - off peak period	CPIt - .154	
       Over 550 GJ/ 2 months - peak period	CPIt	
       Over 550 GJ/ 2 months - off peak period	CPIt - .030	

Tariff Classes 14/22
		
Tariff Component	RPMt	
Supply 	CPIt	
Commodity		
       First 100 GJ / 2 months - peak period	CPIt - .011	
       First 100 GJ/ 2 months - off peak period	CPIt - .090	
       Next 450 GJ/ 2 months - peak period	CPIt 	
       Next 450 GJ/ 2 months - off peak period	CPIt - .154	
       Over 550 GJ/ 2 months - peak period	CPIt	
       Over 550 GJ/ 2 months - off peak period	CPIt - .030	

Tariff Class 63
		
Tariff Component	RPMt	
Commodity 	CPIt	

Contract Tariff
	
Tariff Component	RPMt	
Each tariff component	CPIctt	

Where
CPIt 	is the CPI for regulatory year “t”.
CPIctt	is the Contract Tariff CPI for regulatory year “t”, which is the CPI determined by substituting “March” for “September” in the definition of CPI. 

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