FAQs

AGN is subject to obligations set by regulators including the Australian Energy Regulator, the Commission and the Technical Regulator. 

The Australian Energy Regulator is responsible for the economic regulation of AGN, and many consumer protections for gas distribution customers. It decides how much revenue AGN may recover from its customers and enforces rules about AGN’s operations and services.

The Commission licences AGN’s operation of the gas distribution network and sets licence conditions. We are responsible for consumer protections that complement those administered by the Australian Energy Regulator, including service and performance matters and some connection and reconnection obligations. We also establish some metering provisions that complement those administered by the Australian Energy Regulator and make reporting requirements of AGN. We can also address gaps in the national framework or matters unique to South Australia.

The Technical Regulator is responsible for the safety, reliability, and technical regulation of the gas distribution network. It makes requirements about AGN’s planning and performance and undertakes regular audits. 

These proposed focus areas have been identified through early conversations with stakeholders:

• Service reliability standards: does monitoring performance continue to be sufficient? Is there a need to establish gas distribution service reliability standards?
  
  
• Disconnection and abolishment service standards: is there a need to define different types of disconnection and abolishment services (like temporary disconnection, meter removal, or removal of the pipes connecting a customer’s premises to the mains pipeline)? Should reporting requirements or standards be established for those services?
  
  
• Maintaining the extent of the distribution network: Is it possible that AGN will make a request to discontinue part of the distribution network in the 2026 – 2031 period? If so, how should we consider that request?
  
  
• Preconditions to connection: Do the current preconditions to connection in the Gas Distribution Code continue to be appropriate?
  
  
• Consistency with broader regulatory framework: Are any changes needed to improve consistency of our regulatory instruments with other State and national rules?
  
  
• Reporting requirements: Are any changes needed to AGN’s reporting requirements? Would customers benefit from AGN reporting directly to the public? 

As the energy sector moves away from using fossil fuels, there may be expanded use of renewable gases (including hydrogen) in the distribution network. In response to environmental, cost or health concerns, some customers may decide to use less gas, or stop using gas.  

These changes present risks to consumers related to the price, quality and reliability of gas distribution. For example: 

• blending hydrogen with natural gas may affect the safety or reliability of gas appliances or distribution or metering services
• spreading the costs of gas distribution across fewer gas customers (as some disconnect) may result in higher prices for those who remain, and there may be safety risks if unused connections are not removed, along with ongoing costs to continue to inspect and maintain unused connections. 
• This review will document these risks and engage with other regulators to identify how they can be managed. 

No. It is not our role to make decisions about the future of gas in South Australia. That is the responsibility of the South Australian Government, which is currently working on its comprehensive energy transition policy for the next three decades.

We are seeking feedback on the issues highlighted in this paper and any other relevant matters by 12 April 2024. We will publish a draft decision on any proposed changes in July 2024, ahead of a final decision in January 2025.

Read the Issues Paper and get involved by sending a submission to reviews@escosa.sa.gov.au with the subject line ‘AGN regulatory framework review 2021-26’ or by take the survey below. You can email us to request a meeting if you would like to discuss your feedback.