allocation agent service provider agreement means the agreement between the industry body and the allocation agent that provides the terms of the appointment of the allocation agent;

allocation group means an allocation group as set out in rule 6;

allocation participant means a retailer, distributor, meter owner, or transmission system owner;

allocation results means:

the quantities determined by the allocation agent in accordance with rule 45 and allocated to allocation participants as initial, interim, or final allocations under rules 48 to 50; and
includes any quantities allocated as a special allocation under rule 51 or corrected quantities allocated under rule 44.3;

annual reconciliation means an annual reconciliation in accordance with rule 52;

annual UFG factor has the meaning given by rule 46.3.1;

business day means any day of the week except –

Saturday and Sunday; and
Any day that Good Friday, Easter Monday, ANZAC Day, the Sovereign's Birthday, Labour Day, Christmas Day, Boxing Day, New Year's Day, the day after New Year's Day, and Waitangi Day are observed for statutory holiday purposes; and
Any other day which the industry body has determined not to be a business day as published by the industry body;

consumer installation means one or more gas installations that have a single point of connection to a distribution system or transmission system and for which there is, or has previously been, a single consumer;

consumption period means a month during which gas is supplied to consumers;

corrector means a device that dynamically replaces any one or more of the fixed factors otherwise required to convert gas volume measured at ambient conditions to gas volume measured at standard conditions;

distributor means a gas distributor as defined in the Act and, to avoid doubt, may include the owner of a transmission system to which a consumer installation is directly connected;

dynamic deemed profile has the meaning given by rule 56.1;

exceptional circumstances means circumstances which (in the opinion of the industry body) prevent a retailer from accessing metering equipment despite the best endeavours of the retailer;

final allocation has the meaning given by rule 50.1;

financial year means a 12-month period beginning on the date determined by the industry body and any anniversary of that date;

gas gate means the point of connection between –

a transmission system and a distribution system; or
a transmission system and a consumer installation; or
two gas distribution systems; or
a group of gas gates, as determined and published by the industry body, treated as a single gas gate for the purposes of these rules;

gas gate residual profile has the meaning given by rule 45.1;

gas year means the period from 1 October to 30 September;

GJ means gigajoule;

go-live date means 1 October 2008;

ICP means the installation control point, being the point at which a consumer installation is deemed to have gas supplied and which represents the consumer installation on the registry;

industry body means the industry body approved by the Governor-General by Order in Council under section 43ZL of the Act. In the event that the approval of the industry body is revoked under section 43ZM of the Act, all references to the industry body shall be treated as references to the Commission;

initial allocation has the meaning given by rule 48.1;

interim allocation has the meaning given by rule 49.1;

meter means an instrument designed to measure the amount of gas passed through it;

meter owner means the person who owns or controls a meter used to measure gas consumption for a consumer installation;

metering equipment means any one, or a combination of, a meter, corrector, datalogger and the telemetry equipment used to measure or convey volume information related to an ICP;

monthly UFG factor has the meaning given by rule 46.3.2;

non-TOU meter means a meter which does not have an associated data logger to allow register readings or gas consumption to be recorded automatically at pre-determined intervals;

ongoing allocation costs has the meaning given by rule 15.2;

permanent estimate means a value sourced from an estimated reading that has passed the allocation participant's validation process and has been calculated from validated register readings. An estimated reading used as a switch reading between retailers and not subject to dispute by either retailer may be treated as a permanent estimate;

publish means –

In respect of information to be published by the industry body, to make such information available on the industry body's website; and
In respect of information to be published by the allocation agent, to make such information available on the allocation agent's website; and
For all other information, to make available in such manner as may be determined by the industry body from time to time;

register reading means the number displayed by, or estimated for, a meter register or corrector register at a particular date in time, and that represents the volume of gas recorded by the register over a certain period;

registry has the same meaning as in rule 5 of the Gas (Switching Arrangements) Rules 2008;

registered deemed profile means a static deemed profile or a dynamic deemed profile registered for use by a retailer under Part 3 of these rules;

responsible retailer means, for a particular ICP or consumer installation, the retailer whose retailer code is shown on the registry for all or part of a consumption period;

retailer means a gas retailer as defined in the Act;

rules means these Gas (Downstream Reconciliation) Rules 2008 as may be amended from time to time and includes every schedule to the rules, and any code of practice or any technical code made pursuant to the rules;

seasonal adjustment daily shape values means the total gas consumption (expressed as daily GJ values) published by the allocation agent in accordance with rule 53.1, for each gas gate, derived from each gas gate residual profile for all retailers at that gas gate for the previous 24 months in which allocations have been performed;

special allocation means an allocation performed in accordance with rule 51;

static deemed profile has the meaning given by rule 55.1;

TJ means a terajoule;

TOU meter means a meter which has an associated datalogger to allow register readings or gas consumption to be recorded automatically at pre-determined intervals;

TOU means time of use;

transmission system owner means any person or persons who own a transmission system or part of a transmission system and includes any agent of the transmission system owner;

UFG means unaccounted for gas, including technical and non-technical losses or gains, being the difference between the amount of gas supplied to consumers at consumer installations through a gas gate and the gas injection amounts measured at the gas gate; and

validated register reading means a register reading or permanent estimate which has passed an allocation participant's validation process.

6. Definition of allocation groups

6.1 For the purposes of these rules, an allocation group means one of the allocation groups set out in rule 6.2 and to which each consumer installation is:

6.1 Assigned in accordance with rule 29; and

6.2 Entered on the registry as belonging to by the retailer under rules 41 and 54 of the Gas (Switching Arrangements) Rules 2008.

6.2 The allocation groups are as follows:

6.2.1 Allocation group 1: Assigned to ICPs that have a TOU meter with telemetry and where actual gas quantities are recorded daily:

6.2.2 Allocation group 2: Assigned to ICPs that have a TOU meter without telemetry and where actual gas quantities are recorded daily:

6.2.3 Allocation group 3: Assigned to ICPs where the daily gas quantities are determined by application of an approved static deemed profile to monthly gas quantities taken from register readings that are required under rule 29 to be recorded monthly:

6.2.4 Allocation group 4: Assigned to ICPs where the daily gas quantities are determined by application of the gas gate residual profile to monthly gas quantities taken from register readings that are required under rule 29 to be recorded monthly:

6.2.5 Allocation group 5: Assigned to ICPs where the daily gas quantities are determined by application of an approved dynamic deemed profile to monthly gas quantities taken from register readings that are not required under rule 29 to be recorded monthly:

6.2.6 Allocation group 6: Assigned to ICPs and where the daily gas quantities are determined by application of the gas gate residual profile to monthly gas quantities taken from register readings that are not required under rule 29 to be recorded monthly.

Allocation agent

7. Appointment of allocation agent

7.1 The industry body will, from time to time, by agreement with a person appoint that person to act as the allocation agent.

7.2 The allocation agent has the functions, rights, powers, and obligations set out in these rules.

7.3 The allocation agent will be appointed for a term agreed by the industry body and the allocation agent and set out in the allocation agent service provider agreement.

7.4 The industry body may at any time terminate, re-appoint, or change the appointment of any person as the allocation agent, subject to the terms of the allocation agent service provider agreement.

7.5 The remuneration of the allocation agent will be agreed as between the industry body and the allocation agent in the allocation agent service provider agreement.

7.6 The industry body and the allocation agent may agree on any other terms and conditions, not inconsistent with the functions, rights, powers and obligations of the allocation agent under these rules.

8. Publication of allocation agent service provider agreement

The industry body must publish the allocation agent service provider agreement.

9. Allocation agent website

9.1 Prior to the go-live date, the allocation agent in consultation with the industry body must develop a website for the purpose of publishing information under these rules.

9.2 The allocation agent website must be functional and available to the public on the go-live date.

9.3 The allocation agent must ensure the information on the website is accurate and up to date.

9.4 The allocation agent must publish on the allocation agent website all information provided to it by the industry body for the purposes of publication by the industry body. For the purposes of these rules, such information will be deemed to have been published by the industry body.

9.5 Notwithstanding anything else in these rules, the allocation agent must not publish any information that it considers is confidential or commercially sensitive.

10. Insurance cover

The allocation agent must at all times maintain any insurance cover that is required by the allocation agent service provider agreement, on the terms and in respect of risks prescribed by the industry body, with an insurer approved by the industry body.

11. Performance standards to be agreed

The industry body and the allocation agent must, at the beginning of the term of the appointment and at the beginning of each financial year, seek to agree on a set of performance standards against which the allocation agent's actual performance must be reported and measured at the end of the financial year.

12. Self-review must be carried out by allocation agent

12.1 The allocation agent must conduct, on a monthly basis, a self-review of its performance.

12.2 The review must concentrate on:

12.2.1 The allocation agent's compliance in the previous month with –

its obligations under these rules;
the terms of the allocation agent service provider agreement; and
any performance standards agreed between the allocation agent and the industry body; and

12.2.2 The operation of these rules.

13. Allocation agent must report to the industry body

13.1 On the last business day of each month, the allocation agent must provide a written report to the industry body on the results of the review carried out under rule 12.

13.2 The report must contain details of –

13.2.1 Any circumstances identified by the allocation agent where it has failed, or may have failed, to comply with any of its obligations under these rules, the terms of the allocation agent service provider agreement or any performance standards agreed between the industry body and the allocation agent; and

13.2.2 Any area that, in the opinion of the allocation agent, an amendment to these rules may need to be considered; and

13.2.3 Any other matter that the industry body reasonably requests provided that the industry body makes its request within a reasonable time before the report is due.

13.3 As soon as practicable after receiving a report under rule 13.1, the industry body must publish that report, provided the industry body may exclude any information it considers to be confidential or commercially sensitive.

14. Review of allocation agent's performance by the industry body

14.1 At the end of each financial year, the industry body may review the manner in which the allocation agent has performed its duties and obligations under these rules.

14.2 The review must concentrate on:

14.2.1 The allocation agent's compliance in the previous year with –

its obligations under these rules;
the terms of the allocation agent service provider agreement; and
any performance standards agreed between the allocation agent and the industry body; and

14.2.2 The operation of these rules.

Funding

15. Ongoing fees

15.1 The ongoing fees are monthly fees to meet the ongoing allocation costs.

15.2 Subject to rule 15.3, the ongoing allocation costs are the ongoing costs related to allocation and reconciliation and will include –

15.2.1 The costs payable by the industry body to the allocation agent for the services provided under Parts 1, 2 and 5 in respect of that gas year; and

15.2.2 The costs of the industry body associated with allocation and its role under these rules during that gas year.

15.3 To avoid doubt, the ongoing allocation costs do not include –

15.3.1 The costs of the allocation agent for performing services under Part 3; and

15.3.2 The costs of performance audits and event audits under Part 4.

15.4 Every person who is a retailer on the 1st business day of a month is liable to pay ongoing fees for that month in accordance with these rules.

16. How and when estimated ongoing fees payable

16.1 The estimated ongoing fees are payable to the industry body.

16.2 As soon as practicable after this rule comes into force and no later than 10 business days before the go-live date, the industry body must determine and publish on its website a breakdown of the estimated ongoing allocation costs for the gas year commencing on 1 October 2008.

16.3 As soon as practicable after publication of the estimated ongoing allocation costs for the gas year commencing on 1 October 2008, the industry body must notify every person to whom rule 15.4 applies of the estimated ongoing allocation costs and that ongoing fees will be payable by that person in that gas year in accordance with the following formula:

A x (B/C)

Where:

A = the ongoing allocation costs estimated in accordance with rule 16.2 and divided by 12; and

B = the total quantity of gas allocated to retailer A by the allocation agent in the initial allocation under rule 48 across all gas gates in respect of the consumption period that is 2 months before the current month; and

C = the total quantity of gas allocated to all retailers by the allocation agent in the initial allocation under rule 48 across all gas gates in respect of the consumption period that is 2 months before the current month.

16.4 In respect of the ongoing fees payable by a person during the 2 months immediately after the go-live date, for the purposes of rule 16.3, the total quantities of gas referred to in that rule shall be:

16.4.1 Those quantities derived from the information referred to in rules 78.1 and 78.2; and

16.4.2 That would have been allocated if those quantities had been allocated under these rules.

16.5 For each gas year following the gas year commencing on 1 October 2008, the industry body must –

16.5.1 Estimate and publish on its website at least 2 months prior to the beginning of the gas year a breakdown of the estimated ongoing allocation costs for that gas year; and

16.5.2 As soon as practicable after publication of the estimated ongoing allocation costs, notify each person to whom rule 15.4 applies of the estimated ongoing allocation costs and that ongoing fees will be payable by that person in that gas year in accordance with the formula in rule 16.3.

16.6 On the 1st business day of each month, the industry body, or the allocation agent if required to do so by the industry body, must invoice every person to whom rule 15.4 applies with that person's share of the estimated ongoing allocation costs, calculated in accordance with the formula in rule 16.3.

17. How and when actual ongoing fees payable

17.1 The actual ongoing fees are payable to the industry body.

17.2 As soon as practicable after the end of each gas year, the industry body must determine and publish on its website a breakdown of the actual ongoing allocation costs for that gas year.

17.3 No less than 10 business days after publication of the actual ongoing allocation costs, the industry body or the allocation agent must invoice or issue a credit note to each person to whom rule 15.4 applies with the difference between:

17.3.1 That person's share of the actual ongoing allocation costs calculated in accordance with the formula in rule 16.3 (modified as necessary to refer to the actual ongoing allocation costs); and

17.3.2 The amount of the estimated ongoing allocation costs paid by that person during the applicable gas year.

18. General provisions regarding fees

18.1 The due date for payment of:

18.1 An invoice issued under rule 16.6 is the 20^th day, or following business day, of the month in which the retailer receives the invoice; and

18.2 Any other invoice or credit note is the 10^th business day after the date on the invoice or credit note.

18.2 The fees payable under rules 15 to 18 inclusive are exclusive of any goods and services tax payable under the Goods and Services Tax Act 1985, and goods and services tax on those fees (if any) will be added to the invoices issued to retailers under rules 16.6 and 17.3.

Exemptions

19. Industry body may exempt allocation participant

19.1 Subject to rule 19.2, on the application of an allocation participant or the allocation agent, the industry body may, in its discretion and upon the terms and conditions (if any) that it thinks fit, exempt any allocation participant, class of allocation participants, gas gate or the allocation agent from complying with all or any of these rules.

19.2 The industry body may only grant an exemption under rule 19.1 if it is satisfied that the exemption is desirable to better achieve:

19.2.1 The objectives set out in section 43ZN of the Act; and

19.2.2 The purpose of the rules.

19.3 Prior to granting an exemption, the industry body must –

19.3.1 Publish the application for the exemption, excluding any information it considers to be confidential or commercially sensitive; and

19.3.2 Consult with those persons it considers are representative of those classes of persons likely to be substantially affected by the granting of the exemption.

19.4 The industry body must publish an exemption, and the reasons for granting the exemption, as soon as practicable after the exemption is granted.

19.5 An exemption takes effect from the date specified in the exemption which may not be earlier than the date that it is published.

20. Urgent exemptions

20.1 The industry body may grant an exemption under rule 19.1 without complying with rule 19.3.2 if the industry body considers that it is necessary or desirable that the exemption applied for be made urgently.

20.2 In that case –

20.2.1 The exemption must state that it is made in reliance on this rule; and

20.2.2 The exemption must state an expiry date, which must be a date that, in the opinion of the industry body, reasonably enables the industry body to consult with the persons specified in rule 20.2.3 about the exemption; and

20.2.3 The industry body must publish the exemption and consult with persons it considers are representative of those classes of persons likely to be substantially affected by the exemption; and

20.2.4 As soon as practicable after consulting in accordance with rule 20.2.3, the industry body must:

determine whether or not to revoke, replace, or amend the exemption; and
publish its determination and the reasons for the determination.

21. Variation or revocation of exemptions

21.1 An allocation participant or allocation agent granted an exemption under rules 19 or 20 must notify the industry body of any error or change in any circumstances material to the granting or continuing operation of its exemption as soon as practicable after it has become aware of that error or change.

21.2 An exemption may be varied or revoked, either on application by an allocation participant, allocation agent or on the initiative of the industry body.

21.3 Rules 19 or 20 apply as if the variation or revocation were the granting of an exemption and with all other necessary modifications.

22. List of exemptions

The industry body must publish a list of all current exemptions made under these rules.

Notices and receipt of information

23. Giving of notices

23.1 If these rules require any notice or notification to be given, the notice or notification must be in writing and be –

23.1.1 Delivered by hand to the nominated office of the addressee; or

23.1.2 Sent by post to the nominated postal address of the addressee; or

23.1.3 Sent by facsimile to the nominated facsimile number of the addressee; or

23.1.4 Sent by electronic transmission or any other similar method of electronic communication to the appropriate nominated electronic address of the addressee.

23.2 For the purposes of rule 23.1, the nominated office, postal address, facsimile number and electronic address of retailers, distributors and meter owners is the information provided to the registry under rule 7.2.2 of the Gas (Switching Arrangements) Rules 2008.

23.3 In the case of an emergency, a person may give notice other than in accordance with rule 23.1, but the person must as soon as practicable, confirm the notice in writing and by a method set out in rule 23.

24. When notice taken to be given

In the absence of proof to the contrary, notices are taken to be given –

24.1 In the case of notices delivered by hand to a person, when actually received at that person's address;

24.2 In the case of notices sent by post, at the time when the letter would in the ordinary course of post be delivered, and in proving the delivery, it is sufficient to prove that the letter was properly addressed and posted;

24.3 In the case of notices sent by fax, at the time indicated on a record of its transmission;

24.4 In the case of notices sent by electronic transmission or any other similar method of electronic communication, at the time the:

24.4.1 Computer system used to transmit the notice has received an acknowledgment or receipt addressed to the electronic mail address of the person transmitting the notice; or

24.4.2 Person who gave the notice proves the notice was transmitted by computer system to the electronic address provided by the addressee.

25. Information exchange file formats

25.1 For the purposes of information exchanges between allocation participants and the allocation agent under one or more of these rules:

25.1 The industry body, after consulting with allocation participants, may give notice to allocation participants specifying one or more information exchange file formats that allocation participants must provide information to the allocation agent in; and

25.2 No later than 3 months after receiving the notice, allocation participants must provide information to the allocation agent in the exchange file formats specified in the notice.

Jump to main page content.

Printed: 25/11/2009