We have remade the code of practice to make obligations fit for purpose, align the code of practice with recent changes to the National Gas Rules, and to support other regulatory developments.
Reviewing the Gas Distribution System Code of Practice
- Issues Paper published21 March 2023
- Consultation closed4 May 2023
- Draft decision15 November 2023
- Consultation closed21 December 2023
- Final decision9 May 2024
Overview
Reviewing the Gas Distribution System Code of Practice
We have made a new Gas Distribution Code of Practice (version 1) to update the rules for Victorian gas distributors. The new code of practice updates the rules for new gas connections and provides additional protections for Victorian gas network customers. Our decision to remake the code of practice was driven by several changes in the legislative and regulatory environment of the Victorian energy sector. This includes the commission’s broadened investigative and enforcement powers, federal and state government programs to assist consumers to switch to electric appliances, and other rule changes affecting the operation of Victoria’s gas market.
The new Gas Distribution Code of Practice (version 1):
• allows us to better monitor compliance and enforce obligations on gas distributors
• updates rules for new gas connections to keep pace with regulatory developments
• aligns with recent changes to the National Gas Rules.
The Gas Distribution Code of Practice (version 1) will take effect on 1 October 2024.
The new rules on gas connection charges will take effect on 1 January 2025.
Final decision
On 9 May 2024, we released our final decision on the Gas Distribution Code of Practice and the new Gas Distribution Code of Practice (version 1). Our final decision and accompanying annexes can be found in the Resources tab (at the top of this page).
Key facts from our final decision
Upfront charges for new gas connections
The new code of practice requires gas distributors to charge the full costs of new connections upfront. This will help set appropriate incentives for new connections and manage the risk that customers may reduce or stop using gas over the next two decades due to increasing electrification of appliances.
This change will take effect from 1 January 2025.
Distinguishing disconnections and abolishments
The new code of practice defines temporary disconnection and permanent abolishment. It also requires gas distributors to abolish a connection when directed by a retailer (at the request of a customer) or when directed to do so in accordance with energy safety legislation due to immediate safety risks.
These definitions will take effect from 1 October 2024.
New provision of information and reporting requirements
The new code of practice will require a gas distributor to publish information in a clear, simple and concise manner on its website relating to new connections and connection charges, disconnection, reconnection and abolishment, unaccounted for gas, changes in the type of gas supplied and customer complaint handling.
The new code of practice will also require gas distributors to report annually on guaranteed service levels, unaccounted for gas and number of abolishments.
These requirements will take effect from 1 October 2024.
Next steps
We will monitor the effectiveness of the new Gas Distribution Code of Practice (version 1) in achieving its objectives. We may review and amend the code of practice as needed in accordance with our stakeholder engagement framework.
If you have any questions about the Gas Distribution Code of Practice (version 1), please contact energyreform@esc.vic.gov.au.
Public engagement and consultation summaries
We published a public engagement summary together with our final decision. We also published a summary of stakeholder submissions received to our issues paper and draft decision. All stakeholder submissions can be found in the Resources tab (at the top of this page).
Draft decision
On 15 November 2023, we released our draft decision on the Gas Distribution System Code of Practice review. Our draft decision and the draft Gas Distribution Code of Practice can be found in the Resources tab (at the top of this page).
Stakeholders were able to provide their feedback in the form of written submissions or through responding to survey questions via Engage Victoria or by making general comments over email, mail or phone.
Our consultation process closed on Thursday 21 December 2023.
We received a total of 136 submissions, including 126 responses to the survey on Engage Victoria.
Stakeholder information session
We held an online information session on Thursday 20 April 2023.
Issues paper
We released an Issues Paper on 21 March 2023 to seek stakeholder feedback on key issues in this review.
Stakeholders were able to provide their feedback in the form of written submissions or through responding to survey questions via Engage Victoria.
Consultation ran from 21 March to 4 May 2023.
20 stakeholders responded to our issues paper, including 5 responses to the survey on Engage Victoria.