Regulator fines Jemena over alleged gas breaches

Jemena logo on building (breaches)
Image: Shutterstock

The Australian Energy Regulator (AER) has accepted a court enforceable undertaking from Jemena for alleged breaches of the National Gas Law related to the Gas Bulletin Board.

Related article: AER takes Santos to court for alleged breaches of gas rules

The Gas Bulletin Board provides transparency in the wholesale gas market. Having up-to-date gas flow information facilitates trade in gas commodity and pipeline capacity. Greater transparency across wholesale gas markets informs price discovery and commercial decision-making and can ultimately lead to lower prices for consumers.

The AER has alleged that, on multiple occasions between October 2020 and December 2022, Jemena failed to provide the Australian Energy Market Operator (AEMO) with short- and medium-term capacity outlooks for the Gas Bulletin Board that accounted for the impact of scheduled maintenance on the daily capacity of its pipeline.

As a result, gas market participants did not have access to accurate information on available pipeline capacity on the relevant days, which may have impacted commercial decisions.

By doing so, the AER alleges Jemena breached the National Gas Law.

Jemena has paid two infringement notices totalling $135,600 in relation to the alleged breaches.

In addition to the infringement notices, the AER has accepted an enforceable undertaking from Jemena to address the conduct and minimise the risk of future contraventions. The enforceable undertaking requires the appointment of an independent expert to conduct a review of its Gas Bulletin Board systems, controls, processes and training and submit that expert’s report to the AER with Jemena’s response to each recommendation for improving compliance.

The enforceable undertaking also includes admission by Jemena that it breached its obligations under the National Gas Law and National Gas Rules.

Related article: EnergyAustralia and Incitec fined for alleged gas breaches

Payment of the infringement notices comes after the AER instituted proceedings in the Federal Court against four Jemena subsidiaries for separate alleged breaches of the National Gas Rules and National Gas Law, and fined EnergyAustralia and Incitec Pivot for alleged breaches of the National Gas Rules.

Previous articleAGL reaches FID on Australia’s largest grid-forming battery
Next articleShip carrying Teslas and stink bugs ordered back to China