Gas We are responsible for monitoring, investigating and enforcing compliance with the Gas Law and Rules, including but not limited to, the Short Term Trading Market (STTM), the Victorian gas market and the Bulletin Board. This part of the report provides an update on investigations, compliance matters and projects in the gas markets. Short Term Trading Market Part 20 of the Gas Rules sets out participants’ responsibilities within the STTM, which encompasses three gas trading hubs: Adelaide, Sydney and Brisbane. The rules outline how wholesale gas is traded and include requirements for pipeline operators to submit pipeline capacity and allocation (gas flow) data. Capacity and allocation data quality During this quarter we continued to monitor the quality of STTM data. Figure 1.1 below illustrates the performance of STTM participants in submitting capacity and allocation data from the start of the STTM to June 2013. Data failures are categorised as relating to either or ‘missing/late’ ‘erroneous’ data. Data failures since STTM commencement * September 2010 has been grouped with the December 2010 quarter. Therefore, this data represents four months. Despite the general improvement in the quality of data provided to the STTM, one event did occur in April as a result of human error by AGL with respect to its Camden facility (see section 1.2). A failure to provide accurate and timely data can lead to inefficient pricing signals and market outcomes, resulting in inappropriate wealth transfers between participants. It may also undermine the integrity and reliability of the STTM, discouraging potential entrants or even causing participants to exit the market. AGL capacity error for Camden AGL submitted incorrect capacity information to AEMO for its Camden facility for the 1 April 2013 gas day. AGL intended to advise the capacity was 16.2TJ, however it submitted 0.9TJ. AGL explained that the incorrect submission was due to a combination of human and system errors. AGL considers human error was the main cause since manual checks by staff should have picked up other errors. AGL had previously implemented a practice of manually reviewing and verifying capacity data prior to submitting it to AEMO, however, this process was not followed for the 1 April 2013 gas day. Following this incident the Manager of Gas Operations reinforced this requirement with the trading team and the need to consult the daily checklist of tasks to manage the risk of human error.
Gas We are responsible for monitoring, investigating and enforcing compliance with the Gas Law and Rules, including but not limited to, the Short Term Trading Market (STTM), the Victorian gas market and the Bulletin Board. This part of the report provides an update on investigations, compliance matters and projects in the gas markets. Short Term Trading Market Part 20 of the Gas Rules sets out participants’ responsibilities within the STTM, which encompasses three gas trading hubs: Adelaide, Sydney and Brisbane. The rules outline how wholesale gas is traded and include requirements for pipeline operators to submit pipeline capacity and allocation (gas flow) data. Capacity and allocation data quality During this quarter we continued to monitor the quality of STTM data. Figure 1.1 below illustrates the performance of STTM participants in submitting capacity and allocation data from the start of the STTM to June 2013. Data failures are categorised as relating to either ‘missing/late’ or ‘erroneous’ data. Data failures since STTM commencement * September 2010 has been grouped with the December 2010 quarter. Therefore, this data represents four months. Despite the general improvement in the quality of data provided to the STTM, one event did occur in April as a result of human error by AGL with respect to its Camden facility (see section 1.2). A failure to provide accurate and timely data can lead to inefficient pricing signals and market outcomes, resulting in inappropriate wealth transfers between participants. It may also undermine the integrity and reliability of the STTM, discouraging potential entrants or even causing participants to exit the market. AGL capacity error for Camden AGL submitted incorrect capacity information to AEMO for its Camden facility for the 1 April 2013 gas day. AGL intended to advise the capacity was 16.2TJ, however it submitted 0.9TJ. AGL explained that the incorrect submission was due to a combination of human and system errors. AGL considers human error was the main cause since manual checks by staff should have picked up other errors. AGL had previously implemented a practice of manually reviewing and verifying capacity data prior to submitting it to AEMO, however, this process was not followed for the 1 April 2013 gas day. Following this incident the Manager of Gas Operations reinforced this requirement with the trading team and the need to consult the daily checklist of tasks to manage the risk of human error.
Quarterly%20compliance%20report%20April-June%202013_0.DOCX