Critical Contingency Ongoing Costs

Regulations 17 through 19 of the Contingency Management Regulations provide for ongoing fees to be paid by wholesale purchasers of gas on a monthly basis to meet the critical contingency ongoing costs. The critical contingency ongoing costs are the costs:

• payable by Gas Industry Co to the critical contingency operator in respect of that year; and
• payable to any person appointed by Gas Industry Co to carry out any obligations under the Contingency Management Regulations in respect of that year; and
• of Gas Industry Co associated with critical contingency management and its obligations under the Contingency Management Regulations during that year.

Gas Industry Co has determined that the critical contingency ongoing costs should exclude any overhead costs or policy work resulting from operational activities under the Contingency Management Regulations. Any such work is to be funded from the Gas Industry Co Levy. The critical contingency ongoing costs therefore only relate to other direct external costs in connection with Gas Industry Co administering the Contingency Management Regulations.

For each year following the first year or part year of operation, Gas Industry Co must estimate and publish a breakdown of the estimated critical contingency ongoing costs for that year.

Estimated ongoing costs for FY2012

Estimated ongoing costs for FY2011

Ongoing costs for FY2010 (go-live to 30 June 2010)

As soon as practicable after the go-live date, Gas Industry Co must determine and publish a breakdown of the estimated critical contingency ongoing costs for the first year or part year of operation of the critical contingency management plans. The breakdown is set out in the table below.