The Operational Transportation Service Code (the Code) is a regulatory framework which enables a standard set of terms and conditions for the transportation of secondary capacity. The Code is the Standardised Operational Transport Agreement and has been published in part 24 of the National Gas Rules.
The AER is custodian of the Operational Transportation Service Code (the Code) and can amend the Code in accordance with the NGL and NGR. The code has a Hybrid Governance Model involving AEMO, an Industry Panel and the AER. Any person, other than an OTS Code panel member, can submit a code amendment proposal to AEMO. It will go through a process of consideration outlined in the Gas Rules, (Part 24 Division 2), before the AER ultimately approves or rejects the code change.
Standardised Operational Transport Service Agreements
All non-exempt service providers will be required to publish a Standard Operational Transportation Service Agreement consistent with the Code. These are service agreements that will need to reflect the terms and conditions that enable the secondary trading platforms (the Capacity Trading Platform and Day Ahead Auction). A transportation service provider for a Part 24 facility must prepare and publish their OTSA no later than 22 January 2019 (40 business days from the commencement of the rules). If the Part 24 facility is located in the Northern Territory, the transportation service provider will be required to prepare and publish their OTSA no later than 1 March 2019 (40 business days from the commissioning date of the Northern Gas Pipeline). A transportation service provider for a Part 24 facility must notify the AER without delay upon publication of a standard OTSA or an amended standard OTSA for the Part 24 facility.
Within 12 months of the capacity auction start date the AER will conduct a review of the compliance of Standard Operational Transportation Service Agreements (standard OTSA). Our review will ensure that the standard and facility specific terms in the Code have been reflected in the standard OTSA's, as well as ensuring that all costs and associated charges are consistent with the principles in the Code. More information on our review will be published here prior to the commencement of capacity trading reforms in March 2019.