Investigation report - Epic Energy incorrect STTM allocation data - 2010-11

Sector: 
Segment: 
Category: 
Infringement notice
Release date: 
21 June 2012
Related provisions: 

Rule 369 of the National Gas Rules.

Outcome: 

One infringement notice issued with infringement penalty of $20 000.

Service provider/Asset: 

Overview

The AER has published an investigation report into the compliance of Epic Energy (Epic) with rule 369 of the National Gas Rules (the Gas Rules). Rule 369 requires information and data to be provided to the Australian Energy Market Operator (AEMO) in accordance with good gas industry practice. Rule 369 is a civil penalty provision, meaning the AER may serve an infringement notice.

The report details Epic’s submission of incorrect allocation data to AEMO on 90 occasions between November 2010 and October 2011. The incorrect data related to quantities of gas delivered along the Moomba to Adelaide Pipeline (MAP) to the Adelaide hub of the Short Term Trading Market (STTM). The error was caused by the formula used by Epic to calculate gas deliveries. On days when backhaul gas was scheduled from Adelaide on MAP, the formula incorrectly calculated the amount of gas delivered to Adelaide. The formula error resulted from failures in Epic’s IT governance, review and testing processes.

Following its investigation, the AER had reason to believe Epic’s conduct was not in accordance with good gas industry practice.

On 1 June 2012, the AER served an infringement notice for Epic’s submission of incorrect allocation data for the 24 October 2011 gas day. Epic paid the $20 000 penalty on 18 June 2012. The payment of the infringement notice is not an admission by Epic of the breach or an admission of liability.