Investigation report - Epic Energy's submission of incorrect allocation data - 2013

Sector: 
Segment: 
Category: 
Infringement notice
Release date: 
20 January 2014
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 13 days over June and July 2013.

The incorrect data resulted from a faulty meter and a lack of appropriate systems to alert Epic when incorrect flows were being recorded.

Epic experienced an identical issue in 2012 and in response, it advised the AER that it had initiated a change control process to put in place alarms to identify when erroneous data might be generated. Later in 2012, Epic told the AER the alarms had been implemented.

Epic’s ownership changed in 2013 as part of an acquisition of pipeline assets by the APA Group and a subsequent divestment of the Epic business which operates the MAP pipeline.

Following the recent errors in 2013, the new management of Epic informed the AER that the alarms had not in fact been implemented. Epic has since told the AER it will now implement alarms to its systems.

The AER served an infringement notice to Epic in response to the conduct, which Epic paid in January 2014.