The Operational Transportation Service Code

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.

Operational Transportation Service Code ( PDF 540.95 KB | DOCX 143.82 KB )

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 facility operators will be required from March 2019 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).

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.