make any necessary changes to other procedures and subsidiary documents to accommodate the capacity trading platform. Further detail on the proposed changes to the NGL, NGR and Regulations is provided below. Proposed changes to the NGL As outlined in Table 6.2, the definition of gas trading exchange in the NGL already provides for the trade of related goods and services including pipeline capacity. The primary changes to the NGL to implement the capacity trading platform are those that: allow the NGR to specify what will occur if a primary facility agreement is seller’s terminated or suspended; and extend the subject matter of the NGR and the scope of the rule making AEMC’s functions to include transaction support arrangements and provide for these arrangements to be set out in the Capacity Transfer and Auction Procedures, with which service providers are required by the NGL to comply. Further detail on the latter of these changes can be found in Chapter 4. Proposed changes to the NGR Like the NGL, provisions will need to be included in the NGR to implement the obligations that: service providers will have to honour transactions conducted through the exchange that are given effect through an operational transportation service agreement: for up to 14 days if a primary facility agreement is terminated and to be seller’s paid an amount determined by AEMO for doing so; and for the term of the trade if a primary facility agreement is suspended; and seller’s service providers will have to give effect to operational transfers arising as a result of trades carried out through the exchange, subject to any transaction support (e.g. validation) arrangements in the Capacity Transfer and Auction Procedures and the terms and conditions of the applicable facility agreement. An amendment to the NGR will also be required to give AEMO some flexibility to deal with the recovery of the costs of establishing, operating and administering the Capacity Transfer and Auction Procedures. These changes are set out in Division 2 of Part 22 (Gas Trading Exchange) and Division 6 of Part 24 (Facilitating capacity trades and the capacity auction). These provisions should be read in conjunction with: Other divisions in Part 24 (Facilitating capacity trades and the capacity auction), which, amongst other things, set out: The matters that must be dealt with in the Code, which include the specification of the standard operational transportation services (which include the services that
make any necessary changes to other procedures and subsidiary documents to accommodate the capacity trading platform. Further detail on the proposed changes to the NGL, NGR and Regulations is provided below. Proposed changes to the NGL As outlined in Table 6.2, the definition of gas trading exchange in the NGL already provides for the trade of related goods and services including pipeline capacity. The primary changes to the NGL to implement the capacity trading platform are those that: allow the NGR to specify what will occur if a seller’s primary facility agreement is terminated or suspended; and extend the subject matter of the NGR and the scope of the AEMC’s rule making functions to include transaction support arrangements and provide for these arrangements to be set out in the Capacity Transfer and Auction Procedures, with which service providers are required by the NGL to comply. Further detail on the latter of these changes can be found in Chapter 4. Proposed changes to the NGR Like the NGL, provisions will need to be included in the NGR to implement the obligations that: service providers will have to honour transactions conducted through the exchange that are given effect through an operational transportation service agreement: for up to 14 days if a seller’s primary facility agreement is terminated and to be paid an amount determined by AEMO for doing so; and for the term of the trade if a seller’s primary facility agreement is suspended; and service providers will have to give effect to operational transfers arising as a result of trades carried out through the exchange, subject to any transaction support (e.g. validation) arrangements in the Capacity Transfer and Auction Procedures and the terms and conditions of the applicable facility agreement. An amendment to the NGR will also be required to give AEMO some flexibility to deal with the recovery of the costs of establishing, operating and administering the Capacity Transfer and Auction Procedures. These changes are set out in Division 2 of Part 22 (Gas Trading Exchange) and Division 6 of Part 24 (Facilitating capacity trades and the capacity auction). These provisions should be read in conjunction with: Other divisions in Part 24 (Facilitating capacity trades and the capacity auction), which, amongst other things, set out: The matters that must be dealt with in the Code, which include the specification of the standard operational transportation services (which include the services that