Overview

Introduction

The Gas Act 1992 (the Gas Act) provides for regulations to be made for the purpose of ‘prescribing reasonable terms and conditions for access to transmission or distribution pipelines’. Gas Industry Co’s 2006 review of transmission access issues identified a number of concerns relating to interconnection with transmission pipelines. Subsequent discussions between Gas Industry Co and interconnecting parties suggested that: interconnection processes were poorly defined; technical requirements for interconnection equipment had been changed during the course of projects; roles and responsibilities had been confusing; and liability/insurance matters had not been addressed until late in the process.

The objective of this Interconnection work programme is to ensure that the arrangements for interconnection with transmission pipelines are reasonable. If necessary, as the industry body under the Gas Act, Gas Industry Co may recommend the introduction of rules or regulations to achieve the objectives of the Gas Act and Government Policy Statement on Gas Governance (GPS). 

Review Process

Gas Industry Co has developed Interconnection Guidelines that set out its view on the features of good interconnection practice. Although these guidelines have no legal standing, Gas Industry Co intends that transmission system owners (TSOs) should use them to develop their interconnection services. It is also intended that parties seeking interconnection use them as a guide to the principles, processes, documentation, and dispute arrangements that might apply.

Gas Industry Co will monitor the interconnection services provided by pipeline owners. If these services do not meet the requirements of the Gas Act and GPS, Gas Industry Co will consider other options for improvement, including recommending rules or regulations to the Associate Minister of Energy and Resources (Associate Minister).

In September 2009, an initial review was conducted on the interconnection arrangements of both Maui Development Limited (MDL) and Vector Limited (Vector) against the Guidelines. 

Summary of Status

The 2009 and 2010 interconnection reviews are complete. All review material including Gas Industry Co's advice to the Minister can be found under the ‘review’ tab.