The Gas Governance (Compliance) Regulations 2008 (the 'Compliance Regulations') came into effect on 11 September 2008. The purpose of the Compliance Regulations is to provide for the monitoring and enforcement of the following gas governance rules:
- the Gas (Switching Arrangements) Rules 2008; and
- the Gas (Downstream Reconciliation) Rules 2008; and
- the Gas Governance (Critical Contingency Management) Regulations 2008.
These rules and regulations, together with the relevant provisions of the Gas Act 1992, can be viewed under the Statutory framework.
The Compliance Regulations allow participants in the above gas governance arrangements, as well as consumers, other persons, and the industry body, to allege breaches of the above rules or regulations.
A Market Administrator, Investigator and Rulings Panel are appointed under the Regulations to undertake a range of functions in relation to alleged breaches as follows:
- the Market Administrator receives breach notices, refers allegations that raise material issues to the Investigator and where appropriate, attempts to achieve a resolution on allegations which do not raise material issues. The Market Administrator function is currently being performed by Gas Industry Co.
- the Investigator investigates the facts surrounding all alleged breaches notified to him/her, and endeavours to settle every alleged breach. Jason McHerron (Barrister) has been appointed as Investigator by the industry body.
- the Rulings Panel has jurisdiction to approve or reject settlements provided by the investigator. The Rulings Panel also determines alleged breaches which the Investigator has been unable to settle. The Minister of Energy and Resources has appointed Hon Sir John Hansen KNZM as the Rulings Panel.
A flowchart of the compliance process is available for viewing below: