New Annual Report of the Technical Regulator 2013-14: Gas · 2018. 5. 21. · 7.2.1 AG-001, Gas Appliances Committee 44 7.2.2 AG-006, Gas Installation Committee (AS 5601) 44 7.2.3

Annual Report of the Technical Regulator 2013-14: Gas

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i

Report of the Technical Regulator

This is the annual report of the Technical Regulator under the Gas Act 1997. It describes the operations of the Technical Regulator for the financial year 2013-14 as required by Section 14 of the Gas Act 1997. The Technical Regulator is a statutory office established by Section 7 of the Gas Act 1997. Robert Faunt has held this office since he was appointed as the Technical Regulator on 28 February 2003. The Gas Act 1997, the Electricity Act 1996 and the Energy Products (Safety and Efficiency) Act 2000 require the Technical Regulator to report to the Minister on the Technical Regulator’s operations each year. The Minister must cause a copy of the report to be laid before both Houses of Parliament. Technical Regulator: Robert Faunt

Office Address: Level 8, ANZ Building

11 Waymouth Street, Adelaide 5000

Postal Address: Office of the Technical Regulator

GPO Box 320

Adelaide SA, 5001

Telephone: (08) 8226 5500

Facsimile: (08) 8226 5523

Office Hours: 9:00am to 5:00pm, Monday to Friday

(except public holidays)

Website: www.sa.gov.au/OTR

Email: [email protected]

ISSN: 1832-8695

Front Cover: Depicts the various activities of the Office of The Technical Regulator carried out in 2013-14. Note: All photographs in this report have been used with the permission of the relevant provider or entity.

Annual Report of the Technical Regulator 2013-14: Gas ii

Preface

This report covers the Technical Regulator’s operations under the Gas Act 1997 (“the Act”) as it was in force to 30 June 2014.

Section 3 of the Act states: “The objects of this Act are—

b) to promote efficiency and competition in the gas supply industry; and c) to promote the establishment and maintenance of a safe and efficient system of gas

distribution and supply; and d) to establish and enforce proper standards for safety, reliability and quality in the gas

supply industry; and e) to establish, maintain and enforce proper safety and technical standards for gas

installations and appliances; and f) to protect the interests of consumers of gas.”

“The Technical Regulator is established by section 7 of the Act. Section 8 (1) of the Act provides: “The Technical Regulator has the following functions:

b) the monitoring and regulation of safety and technical standards in the gas supply industry; and

c) the monitoring and regulation of safety and technical standards with respect to gas installations ; and

da) the provision of advice in relation to safety or technical standards in the gas supply industry to the Commission at the Commission’s request; and

e) any other function assigned to the Technical Regulator under this Act.” The Act was amended by the advent of the Energy Products (Safety and Efficiency) Act 2000 in May 2012. This Act makes provisions relating to safety, performance, energy efficiency and energy labelling of products powered by electricity, gas or other energy sources. The Technical Regulator advises the Minister for Energy on gas emergency management and related issues. In addition, the Technical Regulator provides input and is involved in a range of activities in liaison with the gas industry and other Government agencies. The Technical Regulator’s operations in relation to these functions are dealt with in various sections of this report.

Annual Report of the Technical Regulator 2013-14: Gas iii

Contents

Preface ii

Contents iii

Technical Regulator’s Commentary 1

The Office of the Technical Regulator 3

Overview of the Natural Gas Industry in South Australia 4 Section 1:

SA Natural Gas Supply 5 Section 2:2.1 Gas Infrastructure 7 2.2 Safety of Natural Gas Infrastructure 8

2.2.1 Safety, Reliability, Maintenance and Technical Management Plan (SRMTMP) 8 2.2.2 Gas Measurement Management Plan (GMMP) 9 2.2.3 Metering 9 2.2.4 Unaccounted for Gas (UAFG) and Mains Replacement Plan (MRP) 11 2.2.5 Auditing for Safety and Technical Compliance 13

2.3 Gas Escapes and Incidents 14 2.3.1 Third Party Damage 14 2.3.2 Public Reports 15 2.3.1 Leakage surveys 15 2.3.2 Gas Incidents - Infrastructure 16

2.4 Safety of LP Gas Distribution Networks 17 2.4.1 Licensing Requirements 19 2.4.2 Compliance with Exemption Conditions 19 2.4.3 Audits of Compliance 20 2.4.4 Incident Reporting 20

Natural Gas and LP gas Installations 21 Section 3:3.1 Responsibilities 21 3.2 Residential and Light Commercial Gas Installations 21 3.3 Industrial and Large Commercial Gas Installations 21 3.4 Auditing for Compliance 22

Proactive Audits 22 3.4.1 Mobile installations 24 3.4.2 Temporary kitchens at outside events 24 3.4.3 Audits of Permanent Gas Installations at Tourist and Caravan Parks 25 3.4.4 Installation Audit Results 26 3.4.5 Enforcement Activities for Non-compliant Gas Installations 27 3.4.6 Referrals to Consumer Business Service (CBS) 28 3.4.7

3.5 Gas Incidents – Installations 29 3.6 Gas Certificates of Compliance (GCC) 30 3.7 Communication and Education 30

Industry Liaison and Support 30 3.7.1 Technical Presentations 30 3.7.2 New Gas Installation Standard called up by the Gas Act 31 3.7.3

Natural Gas and LP Gas Appliances 33 Section 4:4.1 Gas Appliance Certification 33 4.2 Appliance and Component Recalls and Safety Notices 33

Annual Report of the Technical Regulator 2013-14: Gas iv

4.3 Small mobile LP Gas appliances 34

Section 5: Consumer Safety Awareness 36 5.1 Gas Retailers’ Safety Awareness Plans (SAP) 36

5.1.1 Continuous Safety Promotion 36 5.1.2 The Technical Regulator Website 37

5.2 Gas Consumer Safety Survey 40 5.2.1 Key outcomes from the 2013-14 Survey 41

Section 6: Gas Supply Emergency Management 42

Regulatory Coordination 44 Section 7:7.1 Safety and Technical Standards 44 7.2 Committee Representation 44

7.2.1 AG-001, Gas Appliances Committee 44 7.2.2 AG-006, Gas Installation Committee (AS 5601) 44 7.2.3 AG-008, Gas Distribution Committee (AS/NZS 4645) 45 7.2.4 AG-010, Natural Gas Quality Specifications Committee (AS 4564) 45 7.2.5 Gas Technical Regulators Committee (GTRC) 45 7.2.6 Other Committees, Forums and Representation 46

Appendix 1: OTR Background 49 1.1 OTR Organisational Structure 49 1.2 Technical Regulator’s Activities and Monitoring 50

Appendix 2: Certificate of Compliance 51

Appendix 3: Presentations 52

Appendix 4: Assistance with the Development of Technical Training Courses 53

Appendix 5: Operating Statement 54 5.1 Operating Statement for the year ended 30 June 2014 54 5.2 Staffing Numbers 55 5.3 Resource Efficiency 55

Appendix 6: Network Performance 2013-14 56

Appendix 7: Glossary and Abbreviations 61


1

Technical Regulator’s Commentary

The Technical Regulator carried out investigations, audits, and other gas industry monitoring activities to help ensure that the South Australian public continues to receive a reliable and safe gas supply. In the 2013-14 year, the major aspects of the Technical Regulator’s operations and administration were: Gas Installation and Appliances – Incidents and Safety No gas related deaths were reported during the year but 10 gas related incidents involving injury or significant property damage were investigated. There were 8202 new connections to the natural gas distribution system. All new installations connected to the natural gas supply are subjected to a pre-connection safety check agreed to by the Technical Regulator. The safety check ensures the system is gas tight and that the installation and appliances comply with Australian Standards. The Technical Regulator monitors the effectiveness of this system by carrying out random audits. The Technical Regulator proactively audited 91 industrial and commercial (I&C) installations and 960 residential and light commercial installations making a total of 1,051 audits.

Gas Appliance Online Activity The purchase of uncertified gas appliances continues as an important issue. The Technical Regulator continues to monitor the various internet auction sites with a view to eliminating the availability of uncertified gas appliances. The Technical Regulator conducted an important public awareness campaign to educate the community about the problems associated with purchasing and using uncertified gas appliances. Safety of Gas Supply Audits of Envestra, Origin Energy LPG and Environmental Land Services (Aust) Limited (ELS) satisfied the Technical Regulator that there are sound systems in place to ensure that risks to the community from the operation of natural gas and LP Gas distribution networks are being managed to an acceptable level. The Technical Regulator was pleased that the amount of Unaccounted for Gas (UAFG) from the Envestra natural gas distribution networks decreased in 2013-14. Envestra replaced approximately 269 km of old gas mains over the last 12 months. Industry Communication and Education The gas installations Standard AS/NZS 5601 2010 was reviewed as a result of new material/appliance technologies and building efficiency standards. The new edition of AS/NZS 5601 parts 1 and 2 was published in September 2013. 32 Industry Roadshows regarding gas safety were carried out in conjunction with the Plumbing Industry. All licensed gas workers and contractors in South Australia were invited to attend. There were two editions of the industry newsletter Regulation Roundup (a

Annual Report of the Technical Regulator 2013-14: Gas 2

general gas and electrical information newsletter, sent to all licensed gas and electrical contractors and registered workers) was issued in 2013/14 period. Public Safety Awareness and Safety Education The Technical Regulator conducts an annual public safety awareness campaign. This campaign included specific and general gas safety media releases, radio advertising and internet google word searching. The topics covered gas appliance safety, carbon monoxide awareness, the importance of using a licensed tradesperson and obtaining a Gas Certificate of Compliance for all gas installation work. The campaign continues to remind the public of the importance of reporting gas leaks. The Consumer Safety Survey for this year provided data that will help to improve the effectiveness of the Technical Regulator’s safety campaign. Reliability of Gas Supply and Emergency Management There were no major gas supply interruptions during 2013-14. There was adequate supply of gas throughout the year, but had this not be the case the Technical Regulator would have corresponded with all stakeholders and closely monitored the situation. If an interruption had occurred, the Technical Regulator would have been positioned to implement temporary gas rationing, if required. Australian Standards and Regulatory Committees The Technical Regulator provided expert technical input to assist with the development of Australian Standards on a range of gas infrastructure, installations, gas quality and gas appliance requirements.

The Technical Regulator also liaises with a large number of industry stakeholders through the Gas Technical Advisory Committee (GTAC). This group includes representatives from, relevant contractor groups, employee associations involved in the gas supply industry, local government and the gas distributors (natural gas and LP Gas). GTAC meets twice yearly to provide advice to the Technical Regulator on any matter relating to his functions. The Technical Regulator is also represented on the Gas Technical Regulators Committee (GTRC), a group comprising Gas Technical Regulators from other States, Territories and New Zealand. This group considers technical and policy issues relating to the gas industry with a view to ensuring consistency across the jurisdictions. GTRC’s primary purpose is to ensure that the Australian public continues to have a reliable and safe gas supply and associated appliances. The Technical Regulator also participated in the National Gas Emergency Response Advisory Committee. Discharge of legislative responsibilities The Office of the Technical Regulator continued to perform its functions well during the financial year 2013-14. All legislative functions assigned to the Technical Regulator have been performed throughout the year within the resources allocated for this purpose. Analysis of resource efficiency indicates that the Office is making good use of available resources, while servicing an increasing customer base. Rob Faunt, Technical Regulator

September 2014


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The Office of the Technical Regulator

The Technical Regulator is supported by the Office of the Technical Regulator (OTR). It is separate from the gas supply and the gas contracting industries (privately-owned distribution and retail entities) that it regulates with respect to safety and technical matters. The OTR is a section comprising 45 full time equivalent employees within the Energy Markets and Programs Division of the Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE). There are 8.6 full-time equivalent positions assigned to the Gas Branch of the OTR with the administration, safety promotion and legal support functions shared with the Electrical and plumbing branches of the OTR. The organisational structure of the OTR is shown in Appendix 1, Figure A 1.1. The Technical Regulator ensures the safety of the community by enforcing safety measures and standards that apply to gas infrastructure (distribution systems) and infrastructure operation, work on gas installations (consumer premises), gas appliances and installation operations. These safety and technical measures aim to minimise the risk from gas related activities to as low a level as is reasonably practicable. To fulfil this responsibility, the Technical Regulator carries out an extensive range of activities. These responsibilities and activities are discussed in detail in this report. The Technical Regulator plays an important role in the development and monitoring of applicable national safety and technical Standards and Codes. The Technical Regulator also provides technical support and advice to the Minister for Energy during periods of gas supply shortages, and facilitates discussion with industry participants to achieve the best possible outcome for the State. The regulation of gas networks is important to ensure that they are designed, installed, maintained and operated in a satisfactory manner. Gas pipelines are located under the streets and footpaths of metropolitan Adelaide and some regional centres and it is imperative that they operate safely. In addition, it is vital to end user safety that gas installations and appliances are designed, installed and operated in a satisfactory manner. The flow chart in Appendix 1, Figure A 1.2 summarises the activities through which the Technical Regulator fulfils his obligations under the Gas Act 1997 and Gas Regulations 2012, demonstrating the relationship with the gas supply chain as well as safety for gas appliances under the Energy Products (Safety and Efficiency) Act 2000.


Overview of the Natural Gas Industry in South Section 1:Australia Natural gas was first introduced into SA in 1969 and it has grown in importance since then with approximately 34 PJ (Peta-Joules) delivered to the South Australian distribution network over the last 12 months. This network has now grown to serving 423,463 consumers. Typically commercial and residential consumers use natural gas for cooking, space and water heating. Industrial use includes processes such as car, cement and glass manufacturing and steel production. The total amount of gas delivered into the South Australian market was approximately 91 PJs, including the gas fuelling the State’s electricity generation needs.

The structure of the South Australian natural gas industry is shown schematically in Figure 1.1 (the italicised text in Figure 1.1 denotes areas licensed and regulated outside the Technical Regulator under the Petroleum and Geothermal Energy Act 2000 and other legislation).

Figure 1.1: Natural gas supply and utilisation in South Australia

Figure 1.2: Natural gas is very important in the production of electricity in South Australia

Retail

Electricity Generators

Industrial Equipment

Residential and Light Commercial Appliances

Transmission major pipelines

Distribution (streets)

Installations (buildings)

Production and Storage GAS

GAS

GAS


SA Natural Gas Supply Section 2: In South Australia, natural gas is supplied from a number of sources and transported to its destinations in the various transmission pipelines as indicated in Figure 2.1 below.

Figure 2.1: Southern and eastern Australian gas fields and major pipelines Of the total amount of gas supplied to the State approximately 38% comes from the Cooper Basin, 56% comes from Victoria (Otway and Gippsland Basins and Iona storage facility), 4% comes from South West Queensland (QSN) and around 2 % from the Limestone Coast. There are two major independent gas supply pipelines, the Moomba to Adelaide Pipeline [MAP] and the SEAGas pipeline. The pipelines independently deliver gas to the Adelaide metropolitan area. Given that there is now more than one pipeline, this greatly enhances the security of gas supply to Adelaide and provides further supply capacity for any future increase in demand. Approximately 91 PJ of gas was supplied to the South Australian market in 2013-14, and of that 58% was consumed in generating electricity.

Figure 2.2(a): Past trend in the utilisation of gas in South Australia for 2012/3 (Gas to network

versus gas to power generation).

61.61% 67.02%

57.71%

58.35%

62.38%

62.15%

61.65%

52.14%

62.43%

66.89%

68.18%

71.64%

0100020003000400050006000700080009000

100001100012000

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

TJ

Total gas usage for SA since July 2012 (excludes Limestone Coast)

percentage Total usage including power stations (TJ) Total Usage Power Stations Only


Figures 2.2(a) and (b) clearly demonstrate that the majority of gas supplied to South Australia is being used in generating electricity. It is also noteworthy that the amount of gas and generated electricity is currently trending downwards.

Figure 2.2(b): Current trend in the utilisation of gas in South Australia for 2013/14 (Gas to network versus gas to power generation).

The transfer of gas from the transmission pipelines to the distribution networks takes place at a number of custody transfer metering stations, often referred to as ‘City Gate Stations’. Here the gas is metered, the pressure reduced and odorant added to make the gas ready for transportation through the distribution network to houses and industry. The principal role of the Technical Regulator with respect to the gas supply is to monitor the quantity and quality of the gas being supplied into the distribution network. Should there be a gas supply emergency; the Technical Regulator will act within the provision of the legislation to ensure that the impacts upon the South Australian community are minimised. Envestra Limited is the owner of and is licensed to operate the natural gas distribution networks in South Australia. Envestra has contracted APA Group to operate these networks on its behalf. In addition, Envestra also owns a number of small gas systems, typically referred to as ‘farmtaps’. The farmtaps supply gas mainly to a single industrial/commercial customer that is fed directly from the transmission pipeline (see Table 2.1). Over the last 12 months there has been a slight decline (3.8%) in the amount of gas consumed within the networks in South Australia despite the increase in the total number of consumers (1.6%).

Table 2.1: Annual quantity of gas entering Envestra’s SA networks from different sources

Source of Supply To the Networks Including QSN

Gas Quantity (TJ) (1 July 2013 – 30 June 2014)

Moomba and QSN (MAP Gas) including farmtaps 19,733

SEA Gas 13,668

Limestone Coast Region 454

TOTAL 33,855

56.53%

60.60%

57.92%

50.07%

57.16% 60.57%

66.34% 62.01%

66.58%

60.84% 49.73%

49.21%

0100020003000400050006000700080009000

100001100012000

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

TJ

Total gas usage for SA since July 2013 (excludes Limestone Coast)

percentage Total usage including power stations (TJ) Total Usage Power Stations Only


It can be seen from Figure 2.3 that overall amount of gas entering into the distribution network has continued to decline since 2001-02.

42930

40564

3798338917 38412

37720 3800336925

37723

3547334129 3385532000

34000

36000

38000

40000

42000

44000

02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14

Gas

quan

tity

(TJ)

Year

Figure 2.3: Trend in the quantity of gas entering the distribution system

During the current reporting period, Envestra have taken the decision to open Elizabeth Isolation Valve 861 located in the Elizabeth district. This valve “partially” separated the Adelaide metropolitan network in the north eastern region, such that the gas supplied from the MAP was separated from that supplied from SEAgas. Opening of this valve allows the northern part of the network access to gas from SEAgas.

2.1 Gas Infrastructure In South Australia, natural gas is distributed through Envestra’s network. This consists of approximately 7,950 km of gas pipes. This network is operated and maintained by APA Group for Envestra. Gas from the distribution system is then supplied to consumers in accordance with their contract with their retailer. The Technical Regulator monitors the operation of the gas distribution networks to ensure that the gas is supplied safely and that the quantity is secure and quality is correct for the use by all consumers.

Table 2.2: Approximate number of consumers in the natural gas distribution networks in South Australia

Network Location Consumers (as of 30/06/2014)

Adelaide, including Virginia, Waterloo Corner and Two Wells 403,721

Whyalla 3,951

Port Pirie 5,291

Mount Gambier 8,570

Peterborough 72

Nuriootpa 873

Angaston 321

Berri/Glossop 95

Murray Bridge 382

Freeling/Wasleys 187


2.2 Safety of Natural Gas Infrastructure 2.2.1 Safety, Reliability, Maintenance and Technical Management

Plan (SRMTMP)

Operators of gas distribution systems must be licensed, unless formally exempted under the Gas Act 1997. A gas entity (including entities exempted from licensing) must, if so requested by the Technical Regulator, prepare and operate in accordance with an approved Safety, Reliability, Maintenance and Technical Management Plan (SRMTMP). This plan can only be approved by the Essential Services Commission of South Australia (‘the Commission’) following the recommendation of the Technical Regulator. The SRMTMP requires reporting against a number of key performance indicators (KPIs) and information regarding incidents and complaints (see Appendix 6). The Gas Metering Code, issued by the Commission, requires licensed gas entities to also prepare and comply with a Gas Measurement Management Plan (GMMP) to ensure accuracy of billing procedures. The SRMTMP forms an integral part of managing the risks to the South Australian community associated with operating the gas distribution networks, and of monitoring compliance with technical standards and codes. The major sections of the SRMTMP address issues relating to the technical standards, operating and maintenance procedures, and management practices applicable to the gas entity. The SRMTMP demonstrates the means by which the entity will comply with the direct requirements of the legislation including the standards and codes called up by the legislation. The following Figure shows the typical content of a SRMTMP.

Figure 2.4: Typical Content of a Safety, Reliability, Maintenance and Technical Management Plan In August 2013, APA Group, on behalf of Envestra Limited, submitted a revised SRMTMP to the Technical Regulator seeking a recommendation for approval by the Commission. A number of discussions between the Technical Regulator and the stakeholders ensured that the SRMTMP met all the requirements of the legislation and the distribution licence, thereby safeguarding the interests of the community. The Technical Regulator recommended to the Commission that the SRMTMP be approved.

Description of

Gas Distribution Infrastructure

Details of Safety

Management System

Hazards and Risk Assessment and Management

Safety, Reliability, Maintenance and

Technical Management

Plan

Design, construction, installation,

commissioning, operation,

maintenance and decommissioning

Emergency and terrorism risk management

Internal monitoring, auditing and

reviewing

Gas incident recording,

investigation and reviewing

Work practices, competency and

training

Key Performance Indicators (KPIs)


Envestra’s gas distribution licence explicitly requires it to include a detailed Leakage Management Plan (LMP), an Asset Management Plan (AMP) and a Mains Replacement Plan (MRP) in its SRMTMP. Following a review of these Plans for 2013-14, the Technical Regulator provided advice to the Commission in relation to their acceptance. The Technical Regulator used the following techniques to monitor compliance with Envestra’s SRMTMP during 2013-14:

• auditing Envestra’s and APA Group’s compliance with specific sections of the Plan

• reviewing the results of an independent technical auditor engaged by Envestra

• reviewing the results of the internal auditing processes used by APA Group

• reviewing the prescribed set of network KPIs reported to the Technical Regulator and the Commission by Envestra

• regular technical meetings and discussions with Envestra and APA Group The specific processes of monitoring and auditing for safety and technical compliance are described in Section 2.2.5. The KPIs detailed in the SRMTMP cover a number of areas including safety, gas measurement, gas quality, reliability and gas connections (see Appendix 6 for details). The KPIs indicate that Envestra’s distribution systems are generally in a sound condition and are being competently operated. There is some concern about the condition of the remaining unprotected steel and cast iron mains within the network.

2.2.2 Gas Measurement Management Plan (GMMP)

A GMMP is required as a condition of a distribution network licence. Detailed requirements are set out in the Gas Metering Code issued by the Commission. It forms an integral part of managing the risks associated with the installation and maintenance of gas meters to an acceptable level. The content of the GMMP is shown schematically in Figure 2.5

Figure 2.5: Content of Gas Measurement Management Plan

In August 2013, Envestra submitted a revised GMMP for 2013-14. Following a thorough review to ensure compliance with legislative and Code requirements, the Technical Regulator recommended approval of the GMMP to the Commission.

2.2.3 Metering

The normal changeover period for a domestic gas meter can be extended, depending on the performance of the meter. The length of this extension is determined by applying AS/NZS 4944:2006 “Gas meters-In service compliance testing”. The normal in-field service life for a

Meter Re-verification Policy

and Practice

Meter Changeover and Replacement

Practice

Metering Purchasing Policy installation

Practices and Accuracy

Gas Measurement Management Plan

Calorimetry Unaccounted for Gas (UAFG)

Metering Reading and Data

Metering


domestic meter is 10 years; however it can be extended to 15 or 18 years, depending on the circumstances. .

Figure 2.6: The dials on a gas test meter During 2013-14, Envestra made no requests to the Technical Regulator to extend the allowable in-service life of any domestic meters. The GMMP includes a requirement for an analysis of the errors found in meters that have been tested in-house by APA Group. Meters are tested after either 10 or 15 years of service depending upon their approved service life. The meter life extension process is now only performed on the Email 602 meter and the number of these meters to be tested is trending downward. Generally APA Group is finding it better to repair than to intest meters at this time. The Technical Regulator noted a significant increase in the number of failures of these meters from 19.8% in 2012/13 to 33.3% in 2013/14. The reason for this appears to be related to the very small number of meters tested (36) and the continued application of the new testing procedure. The “new” procedure commenced in July 2012 and applies more stringent accuracy criteria to the flow tests performed on the meters.

Figure 2.7: Trend in accuracy of meters (±2%) tested in-house

97.2%

96.3%

96.4%

96.4%

96.9%

98.6%

99.1%

99.3%98.0%

91.4%

95.3%

80.2%

66.7%

60%65%70%75%80%85%90%95%

100%

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14

% m

eter

s w

ithin

±2%

Year


Following a review of Envestra’s GMMP for 2013-14, it was noted that there has been a significant improvement in reducing the number of overdue meter change since last year. There were 668 gas meters with a 10 year life outstanding at July 2014 compared with 1594 at the same time last year and 163 gas meters with a 15 year life outstanding at July 2014 compared with 233 at the same time last year. The KPIs provided by APA Group in its Annual Report 2013-14 to the Technical Regulator have indicated that the measurement accuracy for the heating value determination was within the prescribed limits. The heating value is a measure of the energy being used and this must be provided to accurately bill gas consumers.

2.2.4 Unaccounted for Gas (UAFG) and Mains Replacement Plan (MRP)

UAFG is the difference between the measured quantity of gas entering and leaving the distribution network and is thought to be largely due to leakage (approximately 80-90%). UAFG is an indicator of the general condition of the distribution network. A high value of UAFG would indicate higher risk associated with:

• pipeline failure of the age-deteriorated cast iron (CI) through fracturing and unprotected steel mains (UPS) through corrosion.

• the integrity and performance of the gas distribution network which will suffer as a result of increased gas outages due to more frequent unplanned repairs, water ingress and pressure loss due to pipe failure.

• the environment, with leakage of methane. It should be noted that methane is approximately 22 times worse than carbon dioxide in terms of environmental impacts.

• the increased maintenance costs associated with deteriorated CI & UPS mains. Envestra reported that the UAFG value was 1,331 TJ, based on the Australian Energy Market Operator (AEMO) calculations (as of 30 June 2014). This figure is lower than last year’s UAFG value of 1,482 TJ (see Figure 2.8). It should be noted that on an annual basis this value represents approximately 3.9 % of the total quantity of gas that entered the distribution system (33,855 TJ). The decrease of UAFG seems to be attributed to the amount of mains replacement this year. This decreasing trend in UAFG over the last four years, after several years of an increasing trend, is a pleasing outcome.

11821022

1493 14851680

1940 19172153 2133

1805 17441482

1331

0

500

1000

1500

2000

2500

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14

UAFG

(TJ)

Year

Figure 2.8: Trend in Total Amount of Unaccounted for Gas (UAFG)

In 2010-11 following the continued expression of concern by the Technical Regulator regarding the continuing upward trend in the UAFG despite the Envestra ongoing mains replacement program (2004 to 2010), the Commission amended the following:


• The relevant clause of Envestra’s gas distribution licence to require its SRMTMP to include a UAFG Plan comprised of, without limitation, a Leakage Management Plan, Asset Management Plan and Mains Replacement Plan.

• The Gas Distribution Code by imposing a requirement on Envestra to achieve a level of UAFG of no more than 1,626 TJ by the end of the 2015-16 regulatory period. This included an obligation to achieve annual reductions in the level of UAFG for each year until 2016.

In 2013-14 the Technical Regulator and the Commission monitored Envestra’s compliance with the Plans and UAFG requirements. The Technical Regulator was advised that Envestra totally replaced 269 km of gas mains, well in excess of the regulatory target of 233 km for 2013-14 (predominantly CI and UPS mains). This is a combination of carry over block replacement from 2012-13 and the new block replacement which was scheduled for 2013-14. The Technical Regulator noted that the annual replaced length of gas mains was the largest that Envestra has completed over the last 12 years.

Figure 2.9: Mains replacement with a new inlet connection in place The Technical Regulator expressed concern that Envestra has failed to meet its regulatory commitments for mains replacement in the Adelaide Central Business District (CBD) for 2013-14 and 2012-13. Envestra replaced 6.2 km in the CBD, well below of the target of 18 km for 2013 -14. In 2012-13 the Technical Regulator reported that Envestra has only replaced 0.7 km of its 18 km commitment for the CBD. Envestra advised the Technical Regulator that there were some design and planning issues due to the complexity of mains replacement in the CBD with the primary issue being design pressure, which affected progress of mains replacement in the CBD. The Technical Regulator was advised that Envestra is managing risks associated with gas mains being not replaced in the CBD in accordance with its regulatory commitment by carrying out regular leakage surveys and monitoring public gas leak reports. The results from these activities indicated that there has not been any deterioration in gas mains integrity within the CBD over the last two years. In July 2014, Envestra submitted a revised MRP to the Technical Regulator and the Commission in which it advised that it has budgeted to replace a further 280 km of gas mains in 2014-15 (this includes 18 km of gas mains to be replaced in the CBD).


2.2.5 Auditing for Safety and Technical Compliance

The Technical Regulator uses three types of audits to obtain ensurance that the implementation of Envestra’s SRMTMP and GMMP meets the requirements prescribed by the Gas Act 1997, the Gas Regulations 2012, ESCOSA’s Gas Distribution and Metering Codes and Envestra’s distribution licence conditions. The three types of audits are:

• audits performed by the Technical Regulator

• independent technical audits arranged by Envestra with the results being provided to the Technical Regulator for review

• APA Group’s internal audits with the results provided to the Technical Regulator for review

During 2013-14, the Technical Regulator carried out a series of desktop and field audits of Envestra’s SRMTMP. This included a review of the UAFG Plan comprising a LMP and MRP, and GMMP. The audits were carried out in areas that directly affect consumers, the general public, and/or the safety, reliability, maintenance and integrity of the distribution network. The audit scope was discussed and agreed with the Commission. This provides a consistent approach, prevents duplication and minimises compliance costs. These audits included a review of the following:

• Evidence of completion of outstanding corrective actions on all recommendations noted during the Technical Regulator’s audit in 2012-13.

• Periodic Meter Changeover (PMC) - review of APA Group’s enforcement and commitment to replace outstanding domestic and industrial and commercial (I&C) meters.

• Gas Quality and Odorising Management System – review of the current implementation and effectiveness of APA Group processes in relation to gas quality and odorisation, including the implementation of the odorising sampling schedule, accuracy verification testing and analysis.

• Systems and procedures to fulfil APA Group’s obligations with respect to installations, operations, maintenance and emergency preparedness of the regional gas distribution networks in Berri and Murray Bridge.

• Materials and Components Control Process – review of the processes that exist within APA Group to assess new materials for inclusion on the South Australian gas distribution networks. Review of how APA Group ensures that materials and components in the networks are fit for purpose e.g. pipes, valves, regulators etc.

• Field processes and practices for installation, joining and squeeze-off of polyethylene (PE) pipes – review of how APA Group manage the processes to ensure that the long term integrity of gas distribution is maintained.

• Connection and commissioning processes of new and existing industrial, commercial and residential customer connections (‘Meter Fix’ process) – review of the contractors’ role, examination of contractor training and accreditation, APA Group’s internal auditing of the connection practices, response time, commissioning completion and custom-builder satisfaction.

• Mains Replacement Program (MRP) and Leakage Management Plan (LMP) – review of APA Group’s compliance for 2013-14 (e.g. rates, resources, reporting, etc.) with the approved MRP and preparation for compliance with the MRP for the next 12 months (2014-15). Review of the impact of APA Group’s mains replacement on the unaccounted for gas (UAFG) level over the last 12 months. Review of response times to the gas leak reports over the 12 months and any changes to the LMP procedures, if applicable.

• Systems and procedures used by APA Group for contractor management and compliance – review of APA Group’s induction and training of mains replacement crews and how APA Group’s contractors manage their workforce to ensure that they are adequately trained, experienced and drilled in the appropriate procedure. Review of the level of supervision of contractor crews by their own team leaders, and in turn by APA Group supervisors.


The Technical Regulator’s audits carried out during 2013-14 found, in general, that the implementation of Envestra’s SRMTMP, LMP, MRP and GMMP (in the audited areas) are meeting the minimum requirements prescribed by the Gas Act 1997, the Gas Regulations 2012, Envestra’s distribution licence conditions, safety and technical standards, and industry codes. APA Group provided documents which assured the Technical Regulator that its staff had sound and well-developed systems in place to ensure that the risks to the South Australian community from the operation of the distribution networks are managed to an acceptable level. It also presented evidence that adequate systems are in place for ensuring the implementation of procedures for the training and assessment of competency of APA Group staff (and contractors) in the audited areas. The audits found that:

• Envestra replaced 269 km of gas mains in 2013-14 and a further 280 km is expected to be replaced in 2014-15.

• The UAFG level was reduced from approximately 1,482 TJ to 1,331 TJ in 2013-14.

• Approximately 95% of APA Group’s responses to gas leaks reports were within 2 hours (requirement of the LMP) in 2013-14.

The Technical Regulator’s audit identified some minor operational / technical areas that may need attention and corrective actions. To assist APA Group with those actions, an audit report that addresses the observations, comments and/or recommendations on each area audited will be prepared.

2.3 Gas Escapes and Incidents The Technical Regulator is concerned about UAFG given it is attributed largely to gas leakage. The identification, location and repair of leaks are the key to the safe operation of the distribution network. The public’s safety is a principal priority for the Technical Regulator, distribution system owners and operators. Should a pipeline fail, it could result in a leak that migrates through the ground to a confined space (e.g. a cellar) and thus would pose a major risk of fire or explosion. Any gas escapes that are found in the distribution system would have been detected through either public reporting (reactive) or regular leakage surveys (proactive).

2.3.1 Third Party Damage

Damage to the distribution systems (mains and services) caused by third party activities constitutes one of the greatest gas related risks to the South Australian community because it can result in large volume gas escapes. There were 667 of these incidents reported during 2013-14 (See Figure 2.10). APA Group reports the number of these incidents annually as one of its KPIs (see Appendix 6 for further KPI data).

Figure 2.10: Trend in Third Party Damage to Mains and Services

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545

511

778 888 928 948 924796 714

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A major factor contributing to the damage of mains and services is a lack of notification from a third party to the gas distributor prior to any expected activity in the vicinity of the mains and services. In South Australia, APA Group utilises a “Dial Before You Dig” service in order to minimise the likelihood of damage. This service allows APA Group to advise about the location of gas pipes and to assess the associated risks of the activities proposed by third parties. During the year, APA Group provided approximately 33,609 location services to various third parties. The number of location services provided was lower than in 2012-13 (34,755). The Technical Regulator monitors the effectiveness of this service via frequent discussions with APA Group, annual audits and the review of APA Group’s annual operational reports. These discussions found that the Dial Before You Dig system provided an adequate, detailed and prompt asset information and field checking service. In 2013-14, APA Group continued to promote its Gas Main awareness program to reduce the number of gas incidents caused by third parties. It conducted 2 training sessions and carried out other means of communications (e.g. meetings, letters, emails etc.) to familiarise metropolitan and regional Councils, major civil works contractors, other utilities (e.g. SA Water, SA Power Networks and Telstra) and Emergency Services with the existence and identification of Envestra’s gas distribution infrastructure. The Technical Regulator strongly supports and monitors these APA Group activities.

2.3.2 Public Reports

In 2013-14, there were 4,684 gas mains and service leaks reported by the public including the 667 instances of third party damage and 1,815 public reports where APA Group attended but no leak was found. Figure 2.11 shows that the number of gas mains and service leaks reported by the public significantly increased over the last year. The Technical Regulator was advised that the following factors contributed to the increase of public reported leaks in 2013-14:

• In February 2014 there was a significant weather event (record rain) which caused a lot of ground movement and a change in soil conditions (e.g. dry to wet), which are known to bring gas leaks to the surface.

• In March 2014 APA Group had 3 incidents of gas cloud reports which resulted in hundreds of reports received in a matter of hours. These reports were well above what APA Group normally receive in any given day. The gas cloud reports were not related to natural gas; however they were still logged as public reports and showed up in APA Group’s statistics.

• APA Group increased the odorant level from 9mg/m3 to 10mg/m3 in the gas distribution network on 4 May 2014.

• Annual advertising of the gas leaks and emergencies number commencing in April 2014.

• Change in the gas leaks and emergencies number to 1800 GAS LEAK with additional advertising in May 2014.

The ongoing mains renewal, and mains and services repair strategy of Envestra is expected to improve the condition and reliability of the gas distribution network. Over time it is expected that this should further reduce the number of gas escapes reported. The Technical Regulator continues to monitor the gas leak data, especially in relation to the mains replacement strategy. 2.3.1 Leakage surveys

Leakage surveys are the key proactive maintenance strategy employed by the distribution system operator to manage leakage and determine the condition and reliability of the gas distribution network. The approach to leakage surveys is currently risk-based; ‘high consequence’ locations are surveyed more frequently. APA Group reports the results of the leakage surveys to the Technical Regulator annually as one of its KPIs (reported KPIs for 2013-14 are included in Appendix 6, Leakage Survey information is in KPI 4.4).


Figure 2.11: Trend in public reports of gas mains and service leaks

2.3.2 Gas Incidents - Infrastructure

Gas incidents that involve death, or injury to a person requiring medical assistance, property damage above $5,000 or a dangerous situation involving a pipeline operating above 1,050 kPa, must be reported to the Technical Regulator. Under the Gas Regulations 2012 and the requirements of Envestra’s SRMTMP, the required time frame for reporting will vary with the severity of the incident. All incident reports are registered in the ‘Technical Regulator Incident Database’ and are regularly reviewed and, where appropriate, the incidents are investigated. There were no deaths from distribution system incidents during 2013-14. However, there were two incidents which involved personal injury. In October 2013, there was an incident when an APA Group contractor was injured during the replacement of an inlet service at Port Pirie resulting in his hospitalisation. The incident occurred when the contractor was excavating alongside a gas meter using an electric jackhammer to removing concrete. He hit the service valve accidently turning on the gas which escaped and was consequently ignited by the electric jackhammer. The contractor sustained second degree burns behind his knee and lesser burns to his arm. He received hospital treatment for his injuries. APA Group and SafeWork SA undertook investigations into this incident and the Technical Regulator monitored the implementation status of all recommended actions. In March 2014, there was an incident which involved a Service Stream technician undertaking work for SA Power Networks in Munno Para. It was reported that the technician had attempted to pull a fuse in an electrical pit and when he received a flash from igniting gas. The technician‘s received singed eyebrows and no other injuries. An SA Power Networks crew investigated the site and could smell gas and they reported this to the National Response Centre for APA Group to correct. SA Power Networks also reported the incident to SafeWork SA. The Technical Regulator also receives reports on other incidents such as outages affecting more than five consumers. The size and nature of an outage can vary greatly but major outages are infrequent in South Australia. In 2013-14 there were 17 such incidents. There were two major incidents that affected a large number of consumers, they were:

• Salisbury, where 95 consumers were affected for approximately 4 hours

• Bedford Park, where 93 consumers were affected for approximately 5.5 hours In February 2014, a gas outage affected 95 consumers in Salisbury, including the Salisbury High School. The incident occurred while the APA Group contractor was working to isolate a

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section of main to be replaced. The contractor was bagging off to isolate supply when the pressure dropped and a turn-off of all affected consumers was required. The APA Group kept the Technical Regulator informed of its turn off and relights activities. In May 2014, in preparation for mains replacement works in Bedford Park, an APA Group contractor was required to set up a temporary regulator in the area. When testing the temporary regulator there was some miscommunication between the personnel involved and both the main regulator and temporary regulator were turned off. As a result of this the gas supply to 93 customers was interrupted. APA Group once they had been notified carried their process to restore gas supply. The Technical Regulator was advised that APA Group had investigated the incident and that they had recommended a number of improvements to the relevant work procedures to avoid any future reoccurrence. Throughout all major customer outages and incidents, the Technical Regulator monitors the outage and assesses the adequacy of the response. This has provided a level of confidence that the operational and maintenance strategy employed by APA Group, on behalf of Envestra is effective. In 2013-14, both APA Group and the Technical Regulator continued, as in previous years, to conduct a number of discussions with the Metropolitan Fire Services (MFS) and representatives of other emergency services about appropriate actions that should be taken when responding to gas incidents. APA Group and the Technical Regulator also requested that emergency services endeavour to consult APA Group before turning off valves and/or squeezing off a gas main to make a site safe.

Figure 2.12: Important in protecting the community, make sure you report all gas leaks. APA Group recently changed its emergency reporting number to 1800 GAS LEAK.

2.4 Safety of LP Gas Distribution Networks In addition to natural gas, Liquefied Petroleum Gas (LP gas) is commonly used in a number of residential, commercial and industrial applications. Excluding automotive use, LP gas is used


by over 56,000 consumers with permanently-fixed appliances and well over 200,000 consumers with portable appliances such as barbeques, patio heaters and gas lanterns.

Figure 2.13: LP gas supply is reticulated around the Laurels retirement Village in Mount Barker There are eight separate LP gas distribution networks in operation in South Australia (Table 2.3). In 2013-14 Origin Energy LPG Ltd, continued development and operation of its LP gas distribution network (Stage 1) at the Cape Jaffa Anchorage residential estate. This development is aimed for around 569 consumers and the construction is planned over 7 stages. The Technical Regulator was advised by Origin Energy LPG Ltd that there were only 5 new connections from mains to houses at the estate in 2013-14. Origin Energy LPG Ltd also advised the Technical Regulator that there will be no further mains extensions required until development at the site increases over time. In 2013-14, Environmental Land Services (Aust) Pty Ltd (ELS) provide advice to the Technical Regulator in regard to the further expansion of its LP gas distribution network at the Bluestone Estate development in Mount Barker. As of 30 June 2014, there were 386 consumers connected at the site (including the Lifestyle Village and Scarlet Crest Estate). It is expected that the Bluestone Estate will be completed in 2015-16 with around 850-900 residents. The Technical Regulator was advised that ELS will be constructing new LP gas distribution networks in Mt Barker in 2014-15 at the proposed Aston Hill Estate (470 allotments approved with the potential to increase by another 1,900 allotments) and at the Springlake Estate (500 allotments). The Technical Regulator monitored technical compliance to ensure that the construction, commissioning and operations of the LP gas distribution networks is undertaken according to the appropriate standards and gas industry practices.


Table 2.3: LP Gas Distribution Networks in South Australia

2.4.1 Licensing Requirements

The Gas Act 1997 was drafted to include LP gas distribution networks. The Commission, with the approval of the Minister for Mineral Resources and Energy, granted Origin Energy LPG Ltd, Elgas Ltd and ELS an exemption from the requirement to be licensed as a LP Gas distribution network operator. These exemptions are subject to a number of conditions to ensure that the safety and technical requirements of the Gas Act 1997 and Gas Regulations 2012 apply. Network owners all operate their LP gas distribution networks under a SRMTMP approved by the Commission on the recommendation of the Technical Regulator. In April 2013, the Commission, following a consultation process with the distributors and retailers of reticulated LP gas and the Technical Regulator, issued its final decision about new licencing requirements. Entities providing reticulated LP gas services under an exemption are now required to apply to the Commission for the licence or licences relevant to their operations. Full compliance with the new licensing regime became effective from 1 January 2014 at which time existing exemptions had expired.

2.4.2 Compliance with Exemption Conditions

The Technical Regulator monitors compliance with the approved SRMTMP by:

• auditing compliance with the plan

• analysing incident reports

• regular meetings and discussions with the LP Gas distribution system network operators

Network Location Owner/ Operator Length of Main

(m)

Operating Pressure

(kPa) Number of consumers

Roxby Downs Origin Energy LPG 31,381 120 1565

Victor Harbor (Rosetta Retirement Village)

Origin Energy LPG 5,474 105 419

Renmark (Jane Eliza Estate)

Origin Energy LPG 2,736 140 99

Port Lincoln Origin Energy LPG 4,075 105 171

Wallaroo Origin Energy LPG 6,355 105 162

Cape Jaffa Anchorage Origin Energy LPG 3,600 70 17

Clare (Hanlins Rise Estate)

Elgas Ltd 1,900 140 59

Mount Barker (Bluestone Estate, Lifestyle Village and Scarlet Crest Estate)

Environmental Land Services Pty Ltd

(ELS) 10,407 100 386


Figure 2.14: LP gas storage tank at Cape Jaffa Anchorage

2.4.3 Audits of Compliance

In 2013-14, the Technical Regulator carried out field audits of the approved SRMTMPs and held regular meetings and discussions as the means of obtaining assurance that Origin Energy LPG Ltd at Renmark (Jane Eliza Estate), Cape Jaffa Anchorage, and ELS at Mt Barker effectively comply with their SRMTMPs in the operation of their LP Gas distribution networks in South Australia. The Technical Regulator’s general finding from the audits was that the operators of the LP Gas networks had adequate systems in place for most of the areas audited to ensure the safe operation of their LP Gas networks. The Technical Regulator was satisfied that the risks to the community from the operation of the LP Gas distribution networks are being managed to an acceptable level by competent and appropriately trained personnel.

2.4.4 Incident Reporting

As is the case with natural gas distribution, LP Gas incident reports are registered in the ‘Technical Regulator Incident Database’ and reviewed by the Technical Regulator. Where found to be appropriate, the reported incidents will be investigated. During 2013-14, there were no reportable incidents involving the LP Gas distribution networks. However, there were a number of cases where the Technical Regulator undertook an investigation of incidents in relation to the installation of LP Gas appliances (see Section 3.5 Gas Incidents – Installations).


Natural Gas and LP gas Installations Section 3:The gas installation commences downstream of the infrastructure (gas meter or LP gas cylinders) owned by the gas entities. The condition and safe use of the installation is the responsibility of the owner/operator of the installation. The gas installation generally includes appliances, pipe work and controls.

3.1 Responsibilities The Technical Regulator is responsible, under the Gas Act 1997, for the monitoring and regulation of safety and technical standards with respect to gas installations in South Australia. This involves ensuring that installation work is performed in a safe manner, using appropriate methods and materials that are compliant with relevant Standards. The monitoring and regulating of gas installation work is carried out by officers authorised under the Act. The Gas Regulations 2012 call up the Australian Standard AS/NZ 5601 – Gas Installations including any code or standard called up by or under AS/NZ5601. The regulations require that a certificate of compliance must be issued by the gas fitting contractor to the client on completion of all installation work. The Energy Products (Safety and Efficiency) Act 2000 requires that gas appliances must be labelled as evidence that they are approved to appropriate standards of safety and efficiency by a certification body, as proclaimed by the Governor.

3.2 Residential and Light Commercial Gas Installations Generally, gas installation work involves the connection of new gas appliances. Industry sources indicated that approximately 62,000 new domestic and light commercial gas appliances were sold and installed in South Australia during the 2013-14 year. This included multiple appliances installed in new premises as well as single additional and replacement appliances in existing premises. In addition to the installation of new gas appliances a significant amount of work involves the repair, replacement and extension of existing gas installation pipe work and ancillary components such as flues and ventilation equipment. Some 88,000 installations fell into this category. Repair, replacement and extension work when combined with new appliance installations, totals an estimated 79,000 gas installation jobs carried out during the year. Statistics indicate that 8,202 new residential, including industrial/commercial natural gas connections were made to the Envestra distribution system during the year. In addition an estimated 7007 new LP gas connections (by various LP gas suppliers) were made to residential and light commercial premises over the same period. In new residential developments where natural gas is not available it is becoming increasingly popular to supply LP gas by means of reticulated LP gas systems supplied from large storage tanks located on the perimeter of the estate. This has some safety advantages as it removes the need for individual LP gas cylinders at each home to be replaced when empty or having individual tanks refilled by tankers. These approximately 8,300 new natural gas and LP gas connections facilitated the supply of gas to 21,382 individual new gas appliances*. * Based on an industry accepted average of 2.2 gas appliances installed per new residential or new commercial connection

3.3 Industrial and Large Commercial Gas Installations The Technical Regulator provides advice on the interpretation of gas standards and advice service to hydraulic consultants, architects and builders as well as to gas contractors. This represents a significant proportion of the work done by the Gas installation and appliance section. Most advice of this type involves commercial or industrial premises and site visits are required to verify that the advice given is consistent with the actual situation on site. This service, whilst resource intensive, is very important and effective. It is far better to find and resolve installation issues in advance than to discover non-compliances and potentially unsafe situations in area where they may create a hazard or delay building handover.


The Technical Regulator was involved in providing oversight on several significant Industrial and Commercial (I&C) gas installations during 2013 - 14. The OTR involvement often extends over several months on large jobs and requires multiple site visits. These included the new Royal Adelaide Hospital, Adelaide Oval Upgrade, the conversion of the Primo Abattoir at Pt Wakefield from LP gas to natural gas supplied from the first LNG storage plant in South Australia and the upgrade of burners and the associated control system at the Torrens Island Power Station.

3.4 Auditing for Compliance Proactive Audits 3.4.1

The current strategy, where possible, is to proactively audit samples of the gas installation work of each contractor in South Australia annually. Gas contractors performing LP gas work in the more remote regional areas may be audited less often because of logistical and resource constraints. An estimated 79,000 residential and light commercial gas installation jobs were completed in South Australia during 2013-14 and of these installation jobs 960 were audited in this manner.

Table 3.1: Results of installation auditing

Note 1: New residential customer installation and appliance safety checks were performed by AMRS (Aust) P/Land Phoenix Pty Ltd technicians (contractors for APA Group) prior to connection to the natural gas distribution system for the first time under an agreement with the Technical Regulator.

An estimated 1000 large commercial and industrial gas installation jobs were completed during the period; and Technical Regulator pro-actively audited 75 of these jobs for compliance with AS 3814 – Gas Fired Industrial and Commercial Appliances and AS/NZS 5601 – 2013 Gas Installations. The Technical Regulator uses a standard audit pro-forma to record audit results. Where work is satisfactory a copy of this form is provided to the installation owner and the contractor. Where there are non-compliances an escalation process is used (See section 3.4.6 for more detail).

Area of Audit 08-09 09-10 10-11 11-12 12-13 13-14

Domestic/light commercial audits 1397 1210 1276 1195 1034 960

100% Domestic safety checks at all new meter connections 1 8850 8800 10351 8919 8621 8198

I&C audits 112 96 96 99 91 75

Caravan & Tourist Park gas safety audits. 18 32 10 29 28 22

Customer complaints investigated and resolved 780 810 670 456 550 680

Investigative interviews 20 18 20 16 15 12

Warning letters sent 144 73 90 66 68 63

Expiation Notices issued 8 6 7 8 6 6

Referrals to CBS – re: licensing issues 17 11 13 13 10 8

Referrals for remedial training.(Self-initiated enrolment)

16 (3)

10 (2)

20 (8)

20 (8) 14 6


Where new type B (large industrial and commercial) gas appliances are installed it is mandatory that they are inspected for compliance with Australian Standard AS 3814 before they are used commercially. This work has been carried out by APA Group; however the OTR was advised by APA Group that they would cease doing this work after 31/12/2013. The OTR is not resourced to do this work and, as a consequence, the Technical Regulator undertook a national search for an organisation with experience and competence in Type B gas appliance inspection and approval. A NSW based company; Select Solutions P/L - a division of the gas distributor SP Ausnet - was approved to undertake this task. They were approved on the proviso that they appointed a competent local agent to act on their behalf in South Australia. The Technical Regulator in turn carries out sample audits of this work. The new arrangement has been operating successfully since commencement.

Figure 3.1: Example of Gas Audit Form.


Mobile installations 3.4.2

The Technical Regulator pays close attention to the standard of LP gas installations and appliances in caravans, motor homes, houseboats, river craft and small sea going vessels - including prawn boats (where high pressure gas burners are used to cook prawns at sea). Imported recreational vehicles (motor homes and caravans) as well as imported yachts warrant particular attention because they may include unique proprietary gas systems and appliances that are not certified to an Australian Standard. The Recreational Vehicle Manufacturers Association of Australia (RVMAA) is represented on the Gas installations Standards committee (AS/NZS 5601). The RVMAA has also expressed concern about unfair competition from privately imported caravans and motor homes where cheaper imports, usually from the UK or USA do not comply with gas, electrical and, in some cases, roadworthiness requirements; The Technical Regulator has discussed this with the SA road transport safety division of Transport SA. An agreement has been reached whereby owners of imported recreational vehicles, undergoing roadworthiness checks prior to registration, are directed to have gas installations and appliances checked for compliance with Australian Standards. Similar concerns apply to some imported boats (yachts & cruisers). Gas safety is an ongoing safety problem when gas system or appliance repairs and maintenance is required due to the lack of spare parts. The Technical Regulator encourages the importers to make space provision for appliances during construction of the boat or recreational vehicles and then source appliances certified for use in Australia and fit them on arrival in Australia hence ensuring the provision for spare parts to overcome these issues.

South Australian registered commercial marine and river craft are required to be surveyed biennially by the Department of Planning, Transport and Infrastructure (DPTI) Marine inspectors. As a result of inter-agency (DPTI Marine & Technical Regulator) cooperation and in the interests of crew and public safety it is now a requirement for these vessels to be inspected for gas and electrical safety as part of the survey. DPTI Marine requires the owner of the vessel to have a gas safety inspection carried out by a licensed person in advance of the survey and provide the surveyor with copies of the inspection reports (Certificate of Compliance). As a result of the Technical Regulator’s activity in this area, insurance companies have become more aware of gas safety requirements and now insist that the gas installation is certified before marine or catering vehicle insurance policies will be issued or renewed.

Temporary kitchens at outside events 3.4.3

Temporary kitchens are set up to cater for outside public events. Generally these kitchens operate on LP gas supplied from portable cylinders located close by. These temporary kitchens may be located in trucks, trailers, caravans, marquees or even inside permanent structures such as community halls. The Technical Regulator held 9 pre-event gas safety meetings including power point presentations during 2013-14 with organisers of these major events. This was done to ensure that the catering companies and smaller itinerant operators on site are aware of all the gas safety requirements. The main issues that arise relate to installations assembled by the stall holder (using gas hose assemblies) rather than by a gasfitter. Most appliances used at these events are portable burners or barbecue style appliances and it is not mandatory for a gasfitter to connect them. The areas that are most closely monitored are the condition of the appliances, gas cylinders and hoses and that there is sufficient provision for ventilation and clearances from combustibles in the area and where the public are present.


Figure 3.2: Example of a temporary BBQ setup at an outside event. Operators were advised to secure / protect flexible hoses connecting the portable appliances.

Where resources allow the Technical Regulator’s inspectors also patrol the site during the set up period and during the event to ensure continuing compliance. The Technical Regulator works closely with inspectors from SafeWork SA in an effort to educate and improve the safe use of gas. Gas related incidents have declined and safety standards have improved significantly as a result of this activity.

Audits of Permanent Gas Installations at Tourist and 3.4.4Caravan Parks

The Technical Regulator pays special attention to the safety of gas installations in Caravan and Tourist Parks. Some of these Parks are located close to major centres and use natural gas but most use LP gas for hot water and cooking as well as for onsite canteens and laundry facilities. In addition to communal facilities the Technical Regulator inspects gas installations on permanently occupied caravans or cabins. Permanent residents pay rent to the Park owner for the site but are responsible for their own utility bills as well as any repairs and maintenance to gas installations or appliances. Long term residents are sometimes in poor financial circumstances and gas installation and appliance maintenance may be neglected as a result. The Technical Regulator may extend the period allowed for the work to be made compliant provided there is no immediate danger to the resident or neighbours. In extreme circumstances, where remedial work cannot be delayed, the OTR will either disconnect the gas supply or make an arrangement with the Park owner / manager to have the work completed and make an arrangement with the resident. Twenty four caravan park audits were carried out during 2013-14, as seen in Table 3.2.


Figure 3.3: Example of coin operated gas cooking facility at a caravan park. Where a caravan is used as permanent accommodation, it is unregistered and the wheels are usually removed. In this case the installation is treated as if it is a residential dwelling and not a mobile home. The electricity, water and gas are permanently connected.

Table 3.2: Number of caravan park audits in various regions

Location of Caravan & Tourist Parks audited during 2013-14

Number of Parks Total sites*

Eyre Peninsula 10 150

West Coast 9 112

South East 5 90

*Sites in this context means the rented land occupied by a permanent resident (caravan/cabin) The most common non-compliances found were –

• Exchange LP gas cylinders located too close to ignition sources

• Gas escapes / obsolete pressure regulators

• Insufficient ventilation for appliances in ablution blocks All non-compliances found were rectified at the expense of residents or caravan park owners.

Installation Audit Results 3.4.5

Overall, the standard of fixed gas installations has shown a continued improvement. This trend has not been without the application of significant resources, especially as large distances must be covered to inspect gas installations in regional and remote areas of South Australia. See table 3.1 for more detail.


The ratio of natural gas to LP gas consumers in South Australia is approximately 10 to 1. 960 proactive audits of residential and light commercial installations were completed in the year. The split of natural gas versus LP gas installation inspections this year was 674 and 286 LP gas installations are audited at a higher relative rate than natural gas jobs for several reasons. 1. LP gas is potentially a more dangerous fuel and is heavier than air with much higher

heating value. 2. Because of the sometimes more remote location of these jobs there may be the feeling that

compliance with Standards is not so important because there is less chance that the Technical Regulator will audit the work and

3. Often existing gas work on site has been performed by unlicensed persons.

Enforcement Activities for Non-compliant Gas Installations 3.4.6

The Technical Regulator’s enforcement activities with respect to non-compliant gas installation work are on a graduated scale which escalates according to the degree of non-compliance found during a pro-active audit or as a result of an inspection prompted by a gas consumer complaint:

1. Minor technical non-compliance. A copy of the audit pro-forma is left with the owner and another is posted to the installation contractor with a request to remedy the situation. A follow up phone call is made to the owner to confirm that the non-compliance has been remedied. 2. Significant but non-hazardous non-compliance A copy of the pro-forma accompanied by a warning letter is sent to the contractor. The letter, endorsed by the installation owner, asks the gas fitter return to the site within a given time frame, to remedy the non-compliances. The owner is notified that significant remedial work is required. A signed and dated compliance statement must then be sent back to the Technical Regulator by the contractor to confirm that the remedial work has been completed. A follow up inspection may be done. 3. Non-compliance posing an immediate danger to persons or property. A copy of the pro-forma accompanied by a warning letter is sent to the contractor. The letter, endorsed by the installation owner, asks the gas fitter to return to the site within a given time frame, to remedy the non-compliances. To make such an installation safe the Technical Regulator’s inspector may isolate an appliance or part of the system or, in some circumstances, cut off the gas supply to the premises. An expiation notice may be issued for defective work. Expiation notices impose a fine of $315 + $60 victims of crime levy per breach for defective work. An expiation notice may include up to three breaches for any one gas installation job. After the defect has been remedied a signed and dated compliance statement must then be sent back to the Technical Regulator. A follow up inspection will be carried out. 4. Prosecution The Technical Regulator may prosecute a contractor where the non-compliance is so serious as to constitute gross negligence or where a contractor has a history of significant non-compliances. As part of the escalation process the steps in 3 above are followed in order to attempt to remedy the non-compliance(s) and ensure that the customer has a safe installation rather than wait for the litigation process to be completed. A copy of the audit pro-forma accompanied by a warning letter is sent to the contractor. The letter, endorsed by the installation owner, asks the gas fitter to return to the site within a given time frame, to remedy the non-compliances. On occasions and in these circumstances it may be that the original contractor cannot, or will not, return to site to remedy non-compliances or the owner will not allow the contractor back on the site. In these cases the owner must engage a third party


gasfitter to make the installation compliant. A signed and dated compliance statement must then be sent back to the Technical Regulator and a follow up inspection will be carried out.

5. Disciplinary interviews / desk top audits

Where repeated non-compliant gas installation work can be attributed to a specific worker or contractor, an interview is arranged. This has been found to be generally much more cost effective than prosecution. The interview is carried out with two authorized officers in attendance and is recorded after the person is first formally cautioned. The aim of the interview is twofold:

• To emphasise the seriousness of the breaches. • To establish whether the breaches occurred as a result of negligence, lack of

knowledge or of the person working beyond the scope of their licence and personal competence.

Where a licensing issue is found the contractor will be referred to Consumer and Business Services (CBS) with a recommendation from the Technical Regulator that disciplinary action be taken to suspend or cancel the gas fitting worker’s registration or contractor’s licence. Alternatively, or in addition, a recommendation may be made that the worker or contractor attends remedial training to overcome some knowledge or skill deficiency (See 3.4.7). A total of 66 warning letters were sent to gas fitting contractors during the year, along with eight expiation notices issued in the same period from a total of 15 serious non-compliances. In some of these cases multiple expiations were issued on the same notice.

Figure 3.4: Investigations and Expiation Notices

Referrals to Consumer Business Service (CBS) 3.4.7

There were ten persons found to be performing gas installation work whilst unlicensed, unregistered or performing work outside the scope of their licence or registration and they were referred to the licensing authority CBS for action. CBS investigated the matters and discussed the recommendations made by the Technical Regulator. Where unlicensed work includes significant non-compliances with the Gas Installation Standards, the Technical Regulator recommends that a joint CBS and Technical Regulator interview be conducted. In addition to

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Investigative interviews Expiation Notices issued incident investigation


any penalty applied by the Technical Regulator, CBS can also apply various sanctions including licence suspension and, in extreme circumstances, licence cancellation. If a person is found to be performing gas fitting work while unlicensed, CBS may, in extreme circumstances, prosecute or as a minimum seek a written assurance that they will desist from this type of work.

3.5 Gas Incidents – Installations Gas related incidents are events where natural gas or LP gas, or their products of combustion, are directly involved (or suspected of being involved) in causing death, injury or property damage. These events are referred to as ‘accidents’ in the Gas Regulations 1997. The Gas Regulations 2012 require events such as these to be reported within specific time frames, dependent on their severity. These events are investigated by the Technical Regulator to determine their cause, often in conjunction with other authorities or organisations such as the Metropolitan or Country Fire Services, South Australian Police, medical examiners and insurance companies. Incidents reported to the Technical Regulator are investigated and recorded on the gas incident database. The Technical Regulator’s staff may be called as witnesses in any subsequent legal action. Occasionally gas installations and appliances are deliberately misused by unlicensed persons involved in illegal activities, for example in the manufacture of illegal drugs.

Figure 3.5: Fire damage to vehicle spray / bake oven caused by insufficient equipment maintenance, (i.e. overheated main circulation fan bearings which set fire to the adjacent

combustible air pre filters and duct work). Incident Summary No gas related fatalities occurred during the year. However 10 gas related incidents involving injury and/or significant property damage were investigated. These include:

• Fire at a newly installed cooker. Cabinets and appliance damaged ($2500) • Fire at hot water unit. Recall in place for appliance. ($1500) • Retirement village. 16 external hot water unit installed in confined space. Sooting and

heat damage to all appliances and surrounds. All appliance replaced in compliant locations. ($30,000)


• Camping stove disposable cylinder overheated due to misuse. Child and adult injured. Burns to face and arms

• A service station. Gas leak from high pressure main in roadway entered electrical switchboard and ignited. Employee working in an office near the switchboard was shaken but not injured. (Estimated $20,000 damage to building and electrical switchboard plus loss of trade over 24 hours.

• At a local caravan park, there was an escape at a communal barbecue that resulted in minor burns to 2 occupants.

• Yatala prison. A gas flash incident occurred at the heating system in the spray shop. A staff member and prisoner received minor burns

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Figure 3.6: Comparison of Significant Incident Statistics

3.6 Gas Certificates of Compliance (GCC) Compliance with the requirement to issue Certificates of Compliance for gas fitting work continues to improve. During the year, 1180 GCC blank books were issued to gas fitting contractors by the Technical Regulator. This totals 59000 individual certificates (50 certificates per book). The Technical Regulator distributes the GCC books free of charge via some 25 major plumbing merchants and Service SA outlets. A sample of a Certificate of Compliance is shown in Figure A 2.1 (Appendix 2).

3.7 Communication and Education Industry Liaison and Support 3.7.1

The Technical Regulator provides information about Standards to gas fitting contractors, architects and engineers, as well as to commercial and industrial users of gas. During the year staff handled 5860 technical enquiries relating to gas installations or appliances. The Technical Regulator has developed a series of pamphlets and bulletins which address the most common and straightforward technical enquiries. These are provided at no charge and, in some cases, have both layperson and expert versions depending on the target group.

Technical Presentations 3.7.2

The Technical Regulator provided 50 gas presentations during the year. These consisted of 7 technical presentations for gas fitters and other technically qualified groups. In addition, 23 presentations on how to use natural or LP gas safely were provided to community groups and


others e.g. caterers or home carers. Key presentations were prepared this year for the following groups:

• Gas and mechanical services fitters

• Real Estate Institute

• Caravan and Camping Association of SA Master Builders and Housing Industry Association

• Hydraulic Consultants Association of SA

• Organisers of outside events (gas safety on temporary kitchens)

A full list of presentations can be found in Appendix 3.

New Gas Installation Standard called up by the Gas Act 3.7.3

Australian / New Zealand Standard AS/NZS 5601 – Gas Installations Parts 1 and 2 was published in late 2013 and was immediately recognised by the Technical Regulator as the required Standard for gas installations in South Australia. During the period March - October 2014, the Technical Regulator presented 27 technical information sessions to gas fitting contractors and consultants to explain the changes in the new AS/NZS Standard. As a result of the effort put in during the previous year to introduce the AS/NZS Standard, it was found that the trade was aware of the new Standard and the changes required as a result.

Figure 3.7: Newsletter Roundup To keep the gas industry informed, the Technical Regulator publishes bi-annually a joint electrical/gas/plumbing industry newsletter – Regulation Roundup. Copies are sent to approximately 2,800 registered gas and mechanical services workers and licensed contractors


in the State. Copies are also sent to interstate Technical Regulators and other interested parties in a reciprocal arrangement. The newsletter provides a good conduit for providing information to the contracting trade and allows industry-specific topics of a technical nature to be discussed. Colour printing allows clear photographs of faulty installations and appliances to be included and it continues to be very popular with the trades.


Natural Gas and LP Gas Appliances Section 4:4.1 Gas Appliance Certification

The Energy Products (Safety and Efficiency) Act 2000 requires gas appliances to be tested, certified and labelled before they can be sold, installed and used in South Australia. Gas appliances are classified as either Type A (i.e. generally mass produced, domestic and light commercial) or Type B (heavy commercial, industrial and often unique utilisation). The four Conformity Assessment Bodies (CAB) that can certify Type A gas products in Australia are currently– the Australian Gas Association (AGA), Standards Australia International Global (SAIG) the International Association of Plumbing and Mechanical Officials R & T Oceana (IAPMO) and Global Mark. The GTRC is working towards introducing a national Gas Compliance Mark and appliance database as part of a new gas appliance certification scheme. In addition, the GTRC has published a process for approving a new CAB on its website (www.GTRC.gov.au). This is the “Assessment criteria for the recognition of Conformity Assessment Bodies for Australia”.

Figure 4.1: Certification Label Examples

4.2 Appliance and Component Recalls and Safety Notices An approved CAB (e.g. AGA, SAIGlobal, IAPMO or Global Mark) can suspend or cancel the certification of a gas appliance or component under certain circumstances. Typically we find this occurs when:

• The manufacturer wishes to change to an alternate CAB.

• The manufacturer has ceased production of the appliance or component and product certification is surrendered voluntarily.

• The manufacturer has failed to pay ongoing fees to the respective CAB for annual verification inspections or label costs.

• The manufacturer has failed to provide the product to the respective CAB for annual verification inspections.

• The appliance manufacturer has been found to have modified the appliance, without notifying the respective CAB, so that it does not exactly replicate the appliance originally certified.

• An appliance has been modified in a way that affects its safety or reliability. Where this happens the Technical Regulators will issue a product recall or safety notice.

• An appliance is found to be defective in service to a point where it is likely to create a hazard (this does not include normal wear and tear or the lack of maintenance by the operator). Where this happens the Technical Regulator will issue a product recall or safety notice.

Note - certification may be reinstated if the manufacturer satisfactorily remedies the non-compliance.


4.3 Small mobile LP Gas appliances The programme for auditing appliance retail stores was continued throughout 2013-14 with 13 retail outlets being audited. This provides an opportunity to check if the retailers are selling only approved, certified equipment and that their displays provide all of the necessary safety information required. In addition, it allows the Technical Regulator to check if these retailers have been notified of any product recall or suspensions and if (or whether) they act in accordance with the notice.

Figure 4.2: Gas Area Heaters, Column and Patio heaters have become very popular these

days; however they are to be used strictly outdoors. As illustrated in Figure 4.2; outdoor gas heating is designed to be used outdoors only. They are generally portable in design for ease of movement, but they must not be used indoors. It is extremely important to only use gas appliances as they are intended to be used.

Figure 4.3: Danger label that now appears on all outdoor appliances to warn against incorrect use follows the above format.


It is for this reason that these appliances should all now carry a danger label as illustrated in Figure 4.3. The audits are an opportunity to educate retailers to only accept certified goods for sale and to pass on the appropriate safety information to their consumers. Issues that were found were addressed immediately and the offending product(s) were removed from the shop display and if required, the stock was quarantined until the non-conformance had been rectified. This process was in general, well received by store managers.

Figure 4.4: Typical Appliance Markings: (Information Data Plate including certification number, warning and certification label)

Certification Number

Warning Label

Certification label


Section 5: Consumer Safety Awareness 5.1 Gas Retailers’ Safety Awareness Plans (SAP)

As of 1 February 2013, following the changes that were made to the National Energy Retail Law (South Australia ) (NERL), a NERL gas retailer must prepare, maintain, publish on its website and periodically revise a SAP in accordance with the requirements of Regulation 36A of Gas Regulations 2012. The requirements prescribe that the SAP must include details of the retailers’ consumer communication plan, including topics ranging from general gas safety information, to the gas appliance safety approvals scheme, and who to contact in the event of a gas supply outage. The NERL gas retailer must obtain the approval of the Technical Regulator to the SAP and any revision. The retailers submitting SAPs for 2013-14 were AGL South Australia Pty Limited, Origin Energy Retail Ltd, Energy Australia Pty Ltd and Simply Energy. Following a review of the SAPs, the Technical Regulator approved the Plans.

5.1.1 Continuous Safety Promotion

The Technical Regulator has continued with its program promoting gas safety to the community. This promotion is comprised of advertisements in the press, on the radio with regular schedules of short 10 seconds “grabs” during the traffic reports and also using media releases. The Technical Regulator has made significant inroads with eBay and the online sales of gas appliances by getting eBays assistance in recognising and removing uncertified equipment from its site. The Technical Regulator has been able to get eBay to provide a warning message to both buyers and sellers alike in relation to gas appliances having to be Australian Certified. Following the deaths of the Robinson boys in Victoria in 2010, the Gas Technical Regulators Committee decided on a national approach to enhance the awareness of carbon monoxide. This has become the principal message for our gas safety campaign for 2013/14. In addition to this the Technical Regulator has continued the promotion of the safe use of gas, gas appliances, the use of qualified licensed tradespeople, the issuing of Gas Certificates of Compliance (GCC) and the reporting of all gas leaks and other gas safety related issues. The Technical Regulator also uses the Corporate Communications media release program. This may be either programmed or reactive in nature. The latter is initiated immediately when an incident occurs. The objectives of the ongoing safety promotion are to:

• raise the public’s awareness for gas safety issues.

• influence the general public to take positive action on gas safety.

• promote awareness of the Technical Regulator’s services as the State’s authority on gas safety matters.


Figure 5.1: Example of a current Gas Safety brochure

5.1.2 The Technical Regulator Website

5.1.3 Technical Regulator Website Online content for the Office of the Technical Regulator (OTR) has two main addresses: www.sa.gov.au/otr for technical information and www.sa.gov.au/energysafe for consumer safety information. The OTR web content is regularly updated as technical regulation and safety issues change or occur. As of early 2013, the technical regulation of plumbing was transitioned from SA Water to the OTR. As a result, all electrical, gas and plumbing safety and technical regulation information on the sa.gov.au website was moved from the Energy section to its own more prominent section under the Water, environment and energy area. In 2013-14, there were approximately 23,500 visitors to the OTR web content, of which 58% were new visitors. The number of pages visited reached 93,796. On average, users of OTR content looked at three pages per visit and spent more than three minutes engaging with the content. In comparison, the average for the entire www.sa.gov.au site is two-and-a-half minutes) 23,549 unique visitors to the OTR web content on sa.gov.au

http://www.sa.gov.au/otr

http://www.sa.gov.au/energysafe

http://www.sa.gov.au/


Figure 5.2: Google statistics for the OTR website

Figure 5.3 below shows the landing page for the Technical Regulator’s electrical, gas and plumbing safety and technical regulation information on sa.gov.au.

Figure 5.2 Legend:

• Visits: total number of visits to your site

• Unique Visitors: total number of first time visitors to your site

• Pageviews: total number of pages viewed on your site

• Pages per Visit: average number of pages viewed per visit

• Average Visit Duration: average visit length of all visitors

• Bounce Rate: percent of single-page visits

• New Visitors: percent of total visitors who visited your site for the first time


Figure 5.3: Landing page for electrical, gas and plumbing safety and regulation The top five OTR – Gas pages visited for 2013-14 were:

• Carbon monoxide safety and awareness • Gas acts, regulations and standards • How to turn your gas supply off and on • Gas barbecue safety • Reporting gas leaks.

The ongoing Be Energy Safe campaign promotes safe and responsible use of electrical and gas equipment. The key communication objectives include:

• how to check if a gas fitter is licensed • remembering to get a certificate of compliance for all gas work • how to report a gas leak • remembering to service and maintain gas appliances • responsible use of outdoor appliances • ‘the silent killer’ – carbon monoxide.

Paid advertising on Google as part of the Be Energy Safe campaign in 2013-14 generated 2,558 interactions with linked content on the OTR pages, of which 69% were by new visitors. The most frequently accessed campaign messages were:


• Carbon monoxide safety and awareness (352 visits) • Using gas appliances safely (224 visits) • Gas safety – catering at outdoor events (160 visits) • Reporting gas leaks (144 visits) • Licensed gas fitters and certificates of compliance (112 visits).

The OTR has also worked with eBay on methods to inform sellers to verify if the appliance is certified and inform shoppers of the need to check that appliances are compliant with Australian laws before they purchase them. A gas safety message is now displayed to shoppers when they check the price of the product before they confirm the purchase and it is also displayed to potential sellers.

5.2 Gas Consumer Safety Survey Since 2002, the Technical Regulator has carried out an annual telephone survey to gauge domestic gas consumers’ experiences with gas safety. More recently this task has been outsourced. For 2013-14 McGregor Tan Research was again commissioned by the Technical Regulator to conduct the research. The idea is to obtain statistical data that reflects the public’s knowledge of gas and electricity safety and to gauge the effectiveness of Technical Regulator’s education campaigns and legislative functions. The results from this survey assist in identifying areas in which the Technical Regulator’s resources can most effectively be focused. An effort was made to ensure an appropriate demographic representation of the public. The survey this year took form of a computer assisted telephone interview and Figure 5.4 shows the summary diagram for the survey. There were 400 households selected at random comprised of 300 in the Adelaide metropolitan area and 100 in SA regional areas, and the results were tracked against the 2012-13 survey.

Figure 5.4: Gas consumer survey 2013-14 summary diagram

Carbon monoxide awareness

400 households

300 metropolitan 100 Regional

277 households connected to gas

Key topics covered

Australian Certified for safety

Maintaining Gas

Appliances

Certificate of compliance

Reporting Gas Leaks


5.2.1 Key outcomes from the 2013-14 Survey

The 2013-14 Survey indicated the following:

• As per the previous year, the vast majority of respondents connected to gas indicated that they could recognise the smell of leaking gas; however, 7% stated that they either could not identify or were uncertain about the smell of gas.

• All of those connected to gas would take an immediate corrective action if they noticed a gas leak in either their home or in the street. This year there was a dramatic increase in the number of respondent who would call the gas emergency number (1800 gas leak) compared with last year (i.e. 32% vs 9%). This was indeed the most popular response and impacted on all the other areas, in particular calling 000 decreased from 31% last year to 22% this year and calling the Gas Company dropped from 27% to 18%.

• This year there was a vast improvement in awareness of the respondents and their ability to correctly identify the gas emergency reporting number (1800 gas leak). However, there were a greater number of respondents whom incorrectly identified the number. This may have been a result of the change to the number during the year.

• For a gas leak in their home, the majority of respondents would switch off their supply (39%), while 25% would call the gas emergency number (1800 gas leak) and 24% would call their gas provider.

• The overwhelming majority (96%) of those surveyed and connected to gas would hire a licensed gas fitting contractor if a gas appliance needed servicing or installing in their home.

• Opposed to that, 4% of survey participants connected to gas were unaware that the gas fitter must be properly qualified and registered. This is down slightly on last year’s result of 6%.

• Of those who had gas appliances installed in the last five years, approximately 26% stated they either did not receive or cannot remember receiving a Certificate of Compliance for the work undertaken. The percentage is 3% lower than the last year and encouragingly continues to trend down.

• Of the respondents connected to gas 66% still do not get their gas appliances serviced which is a very similar result to last year. The balance of consumers understood the importance of maintenance, but responses range from very often to occasionally. It continues to be difficult to get the public’s attention in this area.

• The majority of respondents (76% up from 75% last year) were aware that gas appliances need to be Australian Certified for Safety.

• There has been a significant increase (86%) compared to last year (74%) who knew how to correctly identify an Australian certified appliance. This is an encouraging result given our advertising campaign.

• Despite the emphasis of our advertising campaign there has been no real change (96%) in respondents indicating that they are aware of the dangers of Carbon Monoxide, while the balance were not aware.

In summary, the results were consistent with the findings from the previous survey. The Technical Regulator is encouraged by some of the findings while being satisfied with the majority. This study continues to help the Technical Regulator to reinforce the advertising campaigns, website and any other useful tools to inform the public about the key safety information with regard to gas and its use. Where relevant, the Technical Regulator will make appropriate sections of the survey report available to natural gas and LP Gas entities. The results of the consumer survey emphasis a need to continue to remind the public about the requirement to be provided with a certificate of compliance from your licenced gas fitter upon the completion of any gas installation or maintenance work. It is also very important to remind everyone that regular maintenance of gas appliances should not be overlooked.


Section 6: Gas Supply Emergency Management The gas supply in South Australia is sourced from three states: South Australia, Victoria and Queensland. This diversity of sources has again ensured the security of supply over the last 12 months. In 2013-14, there were no incidents that required the need to issue any temporary gas restrictions to be imposed.

Figure 6.1: The city gate gas metering and pressure reduction compound that feeds natural

gas to the Murray Bridge Township and local industries. The Technical Regulator has the responsibility to assess and monitor any threatening situations and remains prepared to manage an emergency should one occur. In the case of an event, the Short Term Trading Market (STTM) for gas would be the first level of defence to manage a shortfall. If a shortfall is not resolved, the Technical Regulator would consider recommending that the Minister issue directions for temporary gas rationing.

Figure 6.2: Gas gathering system, from the wellhead to the Moomba gas plant in the distance.


All of the respective producer, pipeliner and gas distribution gas entities carried out a number of emergency exercises during 2013-14. These exercises dealt with and tested procedures to manage the various potential problems that may occur within the gas supply chain in South Australia. In May 2014 the Technical Regulator, as a member of the National Gas Emergency Response Advisory Committee (NGERAC), attended an emergency exercise organized by the Australian Energy Market Operator (AEMO). The aim of the exercise was to permit NGERAC and its members the opportunity to investigate their media management plans, policies and procedures in response to an interruption to supply event in a simulated and controlled conference discussion environment. Nominated parties participated in the Exercise. Liquefied Petroleum Gas (LP gas) in South Australia is primarily supplied from Port Bonython by Santos, which provides approximately 80 per cent of the SA market with the remainder supplied from interstate. The market is generally made up of autogas for vehicles and propane for heating. There were not any major supply interruptions to the LP gas supplies in South Australia during the last 12 months.It has been noticeable however that the demand for autogas has been declining over the last 2 years.

Figure 6.3: An operational flare stack at the Port Bonython Fractionation plant.


Regulatory Coordination Section 7:7.1 Safety and Technical Standards

The Technical Regulator is actively represented on the relevant Australian Standards and joint Australian and New Zealand Standards Committees that deal with gas issues and play an important role in developing and maintaining the Standards. These technical standards define the minimum requirements for the design, installation, commissioning, operation, maintenance and decommissioning of gas infrastructure, installations and appliances and ensure that the gas distribution networks are being operated with a high level of safety and reliability. The standards also address the quality of gas.

7.2 Committee Representation The Technical Regulator is represented on or has provided valuable technical comments to several Standards Australia committees as well as many other committees, forums and associations. The Technical Regulator has been, and continues to be, directly involved in the development, promotion and enforcement of a number of industry technical Standards. Several staff members represent the Technical Regulator on a number of Standards Committees, which include:

7.2.1 AG-001, Gas Appliances Committee

The function of this Committee is to develop and maintain the technical, safety and performance requirements of domestic and light commercial gas appliances, known as Type A gas appliances. This committee was involved in updating or amending the following standards in 2013-14:

• The drafting was completed on the four AS5263 Part 1 gas appliance specific standards. They cover, Domestic Gas Cooking Appliances, Gas Space Heating Appliances, Domestic Outdoor Gas Barbecues and Gas Fired Water Heaters for Hot Water Supply and/or Central Heating. These standards will be published near the end of this calendar year.

• Two more AS5263 part 1 standards are currently being drafted, they cover Indirect gas fired ducted air heaters and Decorative log and other fuel effect appliances.

Standards Australia Ltd – the producers of Australian Standards continues to use the “net benefit” case as a means of assessing project acceptance and funding. This allows it to concentrate on priority standards and to adequately allocate its limited resources.

7.2.2 AG-006, Gas Installation Committee (AS 5601)

The Gas Regulations 2012 call up the Australian / New Zealand Standard AS/NZS 5601 (Gas Installations) as amended from time to time as the required standard for gas installation work in South Australia. This international Standard encompasses all residential, commercial, industrial, caravan and boat gas installations to ensure safety. The Technical Regulator provides representation on the AS/NZS 5601 Standard development committee. The committee reviewed the 2010 edition as a result of new material / appliance technologies and building efficiency standards. As a result the new edition of AS/NZS 5601 parts 1 and 2 was published on 16 September 2013.


7.2.3 AG-008, Gas Distribution Committee (AS/NZS 4645)

In 2013-14, the Technical Regulator contributed to the joint Australia and New Zealand Standards Gas Distribution Committee (AG-008) and provided input in developing further revisions/amendments to some parts of the Australian/New Zealand gas distribution Standard AS/NZS 4645: 2008 Gas distribution networks. The intent of this Standard is to provide for the protection of the general public, the gas distribution network and the operating personnel as well as the environment, and to ensure safe and reliable operation of gas` distribution networks that reticulate gas to consumers.

7.2.4 AG-010, Natural Gas Quality Specifications Committee (AS 4564)

The function of AG-010, the Gas Quality Specification Committee, is to maintain AS 4564:2011 Specification for general purpose natural gas. This specification sets out the gas quality requirements necessary to ensure the safety of general-purpose natural gas transported and supplied for use in natural gas appliances and equipment, and for use as fuel in natural gas vehicles. The standard AS 4564(Rev):2011 was published in June 2011 following a major update incorporating significant change to the section dealing with contaminants. A prescribed level for allowable oil contaminants present in gas has been set at 20mls of oil/TJ of gas. This requirement means that the industry will need to declare its operational levels of oil to the Technical Regulator as this standard is called up in the Gas Regulations 2012.

7.2.5 Gas Technical Regulators Committee (GTRC)

All Australian jurisdictions as well as New Zealand are members of the Gas Technical Regulators Committee (GTRC). The GTRC held two meetings during 2013-14. Issues featuring highly included the revision of the combined Australian / New Zealand version of the gas installation standard (AS/NZS 5601) a national response to gas appliance safety issues and the improvement of the national Australian gas appliance testing and certification regime. The Technical Regulator maintained close communications with interstate safety regulators through both the formal GTRC channels and informally with peers in those organisations to share technical knowledge, information on appliance safety issues, common interests and concerns. These relationships are vital to ensure that technical expertise is maintained in all areas covered by technical regulation. The Technical Regulator, through the GTRC, is represented on the Gas Installation Standards Committee (AG-006), Gas Quality Standards Committee (AG-010) and the Gas Appliances Standards Committee (AG-001), to ensure that matters of safety and technical concern to the gas technical regulators and in particular those of significance to our State’s legislative requirements, are adequately addressed. An ongoing example of an area of common concern and cooperation between interstate gas Regulators is the issue of uncertified gas appliances offered for sale on internet auction sites. Regulators have continued to send out warning letters to the appliance retailers and the internet website agents to warn of this potentially misleading practice. The GTRC are in addition monitoring the performance of a number of appliance that are considered to exhibit a higher risk of safety issues these include canister cookers and area heaters.


The GTRC has also been monitoring issues associated with carbon monoxide poisoning and the individual jurisdictional response to issues surrounding the risks associated with gas appliances and carbon monoxide. Carbon Monoxide (CO) mitigation strategy A major gas appliance safety issue was raised following the death of two young boys in Victoria. As a result of the deaths a motion was introduced in Federal Parliament by Dr Sharman Stone MP (3 March 2011). This motion was to explore options to mitigate the risk of Carbon Monoxide (CO) poisoning in Australia and it was passed. In May 2011, the Ministerial Council on Energy (MCE) which has become Standing Council on Energy and Resources (SCER), requested that the GTRC investigate the causes of and the potential options to mitigate the risks of CO poisoning from domestic gas appliances. In July 2011, the GTRC provided a draft Strategy, the conclusion of which was that a CO awareness campaign was likely to provide the best outcome to this problem at a sustainable cost. The SA Government through the Technical Regulator continues to have a major CO awareness strategy in its “Be Energy Safe” advertising campaign and on the sa.gov.au/energysafe website. The website emphasises the need for correct room ventilation and regular gas appliance maintenance as well as only using appliances for what they are designed to do (i.e. do not use appliances that are designed for outdoor use inside your home).

7.2.6 Other Committees, Forums and Representation

• The Plumbing and Gas Fitting Advisory Forum • The Australian Institute of Energy: The Technical Regulator has membership in this

organisation to stay informed about activities being undertaken across the energy industry.

• LP Gas Australia: The Technical Regulator has membership in this organisation to stay informed about development in the LP Gas industry.

• River Murray Houseboat Hirer’s Association: The Technical Regulator liaises with the association and provides technical and safety information relating to LP Gas installations on houseboats.

• Plumbing Industry Technical Forum: The Technical Regulator provides advice on legislation and Standards relating to natural gas and LP Gas installation and appliance safety.

• Caravan and Camping Association of South Australia (CCASA): The Technical Regulator provides advice and technical assistance to ensure that gas installations and appliances comply with technical and safety standards.

• Domiciliary Care and Royal District Nursing Society (RDNS): The Technical Regulator provides advice with respect to making installations and appliances safe where elderly, infirm or blind people are involved or where the householder may suffer from dementia.

• National Gas Industry Training Package: In 2011-12, the UEG06 Package (training package for workers employed by, or contracting to, gas distribution companies to work on their infrastructure) was again reviewed and further changes were proposed for endorsement as part of continual improvement.

• SafeWork SA: SafeWork SA is responsible (under the Dangerous Substances Act 1979) for the storage and handling of LP Gas, where the quantity stored on site exceeds 560 litres. The Technical Regulator Gas Installation and Appliance section and SafeWork SA have excellent two way feedback with respect to safety, installation and storage facilities

SafeWork SA also works closely with the Technical Regulator when investigating workplace safety accidents where natural gas or LP Gas is involved.


Gas Technical Advisory Committee (GTAC) 7.2.6.1

Pursuant to Section 16 of the Gas Act 1997, the Technical Regulator established the Gas Technical Advisory Committee (GTAC). The committee membership for the year included:

Office of the Technical Regulator; the Plumbing Industry Association, CEPU Plumbing Division, Office of Consumer and Business Affairs (now Consumer and Business Services) (CBS), Senior Gas Lecturer, TAFE Regency Park, Envestra Ltd, APA Group, Elgas and Origin LP Gas.

In 2013–14 the Technical Regulator held two GTAC meetings during which various issues in relation to the monitoring and regulation of safety and technical standards in the gas supply industry and issues relating to gas installations and gas appliances (including proposed legislative changes) were discussed.

National Gas Emergency Response Advisory Committee 7.2.6.2

(NGERAC)

The Ministerial Council on Energy (MCE) has developed a National Gas Emergency Response Protocol. The Protocol contains two main elements:

• Arrangements for inter-jurisdictional consultation on the use of statutory emergency powers in the event of a major natural gas supply shortage; and

• Establishment of a government-industry National Gas Emergency Response Advisory Committee (NGERAC).

The Protocol provides for NGERAC to regularly meet, conduct simulation exercises, develop protocols for communication during emergencies and plan for emergencies including developing curtailment tables and options. NGERAC met three times in 2013-14 to progress its principal work as follows:

• Conducted an exercise to: Test the NGERAC internal communications Test the NGERAC activation process To gain an understanding how the Short Term Trading Market triggers

contingency gas Test the media and public communication interface with the NGERAC

process Build an understanding of the market mechanisms that are in place to assist

with managing supply shortfalls

• Reviewed the possibility of the contingency planning report provided by Australian Energy Market Operator (AEMO) to be made generic in nature and thus suitable for release to the gas industry participants.

• Initiated a review of the Memorandum of Understanding under which NGERAC operates. It should be noted that any changes from a review would need endorsement by the Parties to the MoU (i.e. Ministers).

• Forward budgets were formulated with consideration given to the running of future exercises and providing further contingency planning reports.

• Reviewed of the usefulness of the emergency pages of the Bulletin Board.

Short Term Trading Market (STTM)

A Short Term Trading Market (STTM) for gas commenced operation in September 2010 at hubs in Adelaide and Sydney and is operated by AEMO. In December 2011 a further STTM hub commenced operation in Brisbane. The purpose of the STTM is to provide price signals to the gas market which will, in the long term, assist in the provision of further gas supplies and


infrastructure. This will help to ensure long term gas supply security. The STTM also operates a contingency gas market should gas supplies fall short of the estimated daily demand. The use of the contingency gas market will extend the use of market outcomes and may delay the need for notices and directions by pipeliners and ministers.


Appendix 1: OTR Background 1.1 OTR Organisational Structure

Figure A 1.1: Functional Structure of the Gas Branch within the OTR

Technical Regulator

Gas Act 1997 Electricity Act 1996

Energy Products (Safety and Efficiency) Act 2000 Water Industry Act 2012

(Robert Faunt)

ELECTRICAL

(Electricity Act 1996, Energy Products (Safety and

Efficiency) Act 2000)

Gas Infrastructure

Safety and Reliability

Gas Installations

and Appliance Safety

Emergency

Planning and Management

GAS Gas Act 1997.

Energy Products (Safety and

Efficiency) Act 2000.

Liaison with ESCOSA, Energy Industry

Ombudsman, Australian Energy Regulator, Australian Energy Market Operator and the Gas Supply Industry on

gas. Administer the Gas Act

1997and Energy Products (Safety and Efficiency) Act

2000 and Regulations

Minister for Energy

PLUMBING

(Water Industry Act 2012)

1.2 Technical Regulator’s Activities and Monitoring

Figure A 1.2: Major Gas Activities and Monitoring by the Office of the Technical Regulator

Maj

or

OTR

Act

iviti

es

Gas

Indu

stry

Maj

or

Ben

efic

iarie

s

Other States and Countries

Indoor and Outdoor Environment and Greenhouse

Industry and Power Generators

General Public

Gas Industry Employees

Residential, Small Business and Industrial Consumers

Appliance and Component Manufacturers, Suppliers and Retailers

Gas Act 1997 and Gas Regulations 2012 and Energy Products (Safety and Efficiency) Act 2000

South Australian Government/Parliament

Office of the Technical Regulator

• Gas quality • Emergency

management • Security and

reliability of supply

• Standards development

• Public safety • Security and

reliability of supply • Gas quality • Emergency

management • Safety, Reliability,

Maintenance and Technical Management Plans

• Gas Measurement Management Plans

• Compliance audits • Investigations of

incidents and technical complaints


• Assistance to ESCOSA and EIO where requested

• Consumer Safety Awareness Plans

• Connections • Compliance with

standards • Gas Certificates

of Compliance • Inspections and

approvals of residential, commercial and industrial installations

• Technical advice on use of gas, and licensed gas workers and contractors

• Investigation of incidents and complaints


• Appliance approvals

• Appliance certification

• Appliance recalls

• Monitoring of appliance manufacturers and retailers

• Technical advice



• Public safety • Investigation

of incidents and complaints

• Technical advice on appliances

• Safety surveys

• Public education

• Auditing of retail outlets and mobile LPG equipment

• Public safety • Security and

reliability of supply

• Gas quality • Emergency

management • Safety

Management Plans

• Gas Certificates of Compliance

• Technical advice

• Compliance audits


Gas Distribution Networks

Gas Production, Storage and Gas Transmission Networks

Gas Retail Entities

Residential, Small Business and Industrial Gas Installations

Consumers – Power Generators, Commercial, Industrial and Domestic

LP Gas Supply and Installations

Appliance and Industrial Equipment


51

Appendix 2: Certificate of Compliance

Figure A 2.1. Certificate of Compliance Template.


52

Appendix 3: Presentations The Technical Regulator provides information about Standards to gas fitting contractors, architects and engineers, as well as to commercial and industrial users of gas. Many of these enquiries involved site visits as well as significant research. Refer to table A 3.1 Presentations were also provided to non-technical groups; generally about the safe use of LP Gas in temporary kitchens at outdoor events. Refer to table A 3.2 for further detail.

Table A 3.1: Technical Presentations

TECHNICAL PRESENTATIONS

Gas contractors ( AS/NZS 5601 Standard) 24

TAFE/PEER TECH/Training Prospects lecturers 3

Housing Industry Association 1

Housing SA Housing Improvement Branch 1

Master Builders Association 1

Australian Hydraulic Services Consultants Association of SA

2

Total 32

Table A 3.2: Presentations for Community Groups and Event Organisers

NON GAS INDUSTRY PRESENTATIONS

Royal Adelaide show committee 1

Clipsal 500 Project Managers 1

RDNS (gas safety in the home) 1

The Unley Gourmet Gala 1

Schutzenfest 1

Spotless Facilities Management 1

Caravan and Camping Show 1

Adelaide Fringe Festival 1

Oz Asia 1

Garden of Unearthly Delights 1

WOMAD 1

Total 11


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Appendix 4: Assistance with the Development of Technical Training Courses

The Technical Regulator continues to liaise closely with the Office of Consumer and Business Services (CBS) and TAFE / PEER VEET and Training Prospects about gasfitter training curriculums and competencies. (CBS regulates the licensing of gasfitters under the Plumbers, Gasfitters and Electricians Act 1995).


54

Appendix 5: Operating Statement 5.1 Operating Statement for the year ended 30 June 2014 In the 2013-14 financial year, ending June 30, pursuant to Section 24 of the Gas Act 1997, licence revenue received for gas amounting to $1.807 million, was used to recoup the recurrent costs of the Gas Section of the Office of the Technical Regulator. Total recurrent costs for the year were $1.603 million. After allowing for other income there was an operating surplus of $0.204 million which was transferred to equity.

$

Operating Revenues

Licence Fees 1,804,000 Expiation Fees 2,601 Other Income 693 TOTAL OPERATING REVENUES 1,807,294

Operating Expenses Salaries and Wages 1,005,001 Goods and Services 559,844 TOTAL OPERATING EXPENSES 1,602,845

TRANSFER TO EQUITY 204,449 Opening Equity – 1 July 2013 1,243,220 Operating Surplus – 2013-2014 204,449 Closing Equity – 30 June 2014 1,447,669 Represented By: Other Assets (Net of Depreciation) 114,043 Cash 1,333,626 Total 1,447,669


55

5.2 Staffing Numbers The numbers of full-time equivalent (FTE) energy regulatory staff for South Australia are shown in the table below. These numbers have been split into the two sections of the Gas branch of the OTR.

Table A 5.1: FTEs in the South Australian Technical Regulator’s office

FTEs in Infrastructure

FTEs in Installations &

Appliances Total FTEs

3 6 9

5.3 Resource Efficiency The ratios of consumers to office operating cost are shown in Figure A 5.1 below. The OTR has operated efficiently whilst ensuring public safety and keeping its cost base to a minimum. As can be observed from the following graph, the energy regulatory costs are being maintained at a low level, indicating an efficient use of resources.

Figure A 5.1: Department operating expense per consumer

$3.40

$3.11

$3.09

$3.46$3.49

$3.45

$3.12

$3.35

$3.33

3

4

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

An

nu

al O

pera

tin

g ex

pen

se p

er c

onsu

mer

($

/cu

stom

er)

Cost per customers

Cost per customers

Trend (cost per customer)


56

Appendix 6: Network Performance 2013-14 Key Performance Indicators (KPIs) for the distribution networks, as supplied by Envestra, owner of the distribution networks in South Australia, and APA Group, operator of these networks, are as follows:

KPI Section Aspects measured

1. Safety Network and public safety

2. Measurement Accuracy and reliability of gas metering and measurement of gas heating value

3. Quality Natural gas quality

4. Reliability Reliability of gas supply and equipment

5. Connections Safety and soundness of customer connections to the pipeline network

Key Performance Indicator 2009-10 2010-11 2011-12 2012-13 2013-14

1. Safety

1.1 The maintenance of continuous, reliable gas supply

Number of over pressurisation incidents in networks per year 0 2 1 3 0

Number of complaints of poor supply pressure 2 2 12 21 63

Number of gas outages (>5 consumers affected)

22 5 20 11 17

Regulator failures (including active failures) and number of instances of above Maximum Allowable Operating Pressure.

0 1 0 1 0

1.2 Instances of third party damage

Number of times damage occurred to the mains and services, caused by third parties

924 796 714 741 667

Number of transmission main damage or near miss reports 0 0 0 0 0

1.3 Dealing with potential accidents or unsafe situations

Emergency plan exercises 2 6 6 5 7

Emergency plan updates Under revision

Revised 10/2010

Revised 10/2010

Revised 01/2013

Revised 01/2013


57


Number of evacuations *The number is lower compared to 2011-12 due to the clarification of definition of evacuation (to reflect only where there is a high risk or fire or explosion)

3 4 23 1* 2*

Number of instances where a gas leak from a network enters a building

4 5 5 2 2

Number of incidents relating to a gas leak involving the attendance of a fire brigade and/or emergency services *The number is lower compared to 2011-12 due to the clarification of definition of attendance of fire brigade and/or emergency services (to reflect only incidents where there is a high risk or fire or explosion)

111 113 84 6* 6*

Number of fires caused by a gas leak from a network 4 0 2 2 3

2. Measurement

2.1 Meter retest to indicate response to customer requests and confidence in meters and meter plan and regulations

Customer retest request response time if exceeding 21 days 10 8 8 16 13

Number of requests per year (number found to be outside specification)

30 (5)

26 (1)

24 (4)

29 (10)

33 (11)

2.2 Extent to which meters are being changed over (Gas Measurement Management Plan)

Number of meters changed Domestic Industrial/commercial

36,348

915

24,316

547

20,243

648

21,434

817

30,663 1277

Number of meters tested in-house

9,278 1,416 695 459 36


2.3 Accuracy of meters tested in-house (as returned from field)

Percentage of meters within ± 2% 98.0% 91.4% 95.25% 80.2% 66.7%


58


Percentage of meters outside ± 2.0% *In July 2012 the intest testing method was changed, explaining the higher percentage for 2012-13

**The impact of very few meters now tested.

2.0% 8.6% 4.75% 19.8%* 33.3%**

2.4. Extent of bias of sample of meters tested

New meters +0.10% +0.14% +0.01% -1.02% +0.15%

Meters tested in-house +0.23% +0.28% +0.32% -0.01% +0.09%

Repaired meters -0.008% +0.07% -0.06% -0.05% -0.11%

2.5. Extent of meter interference

Number of detected instances of stolen gas *It was reported that an unusually high number was raised in March through June 2013.

**This figure reflects the number of disconnections which have been raised by retailers with the reason category cited as ‘OFU’ (fraudulent use) and which have been processed by Envestra.

54 82 38 112* 458**

3. Gas Quality

3.1. The quantity of gas entering the Distribution System

Total gas entering the Distribution System (including farm taps) (TJ) 36,925 37,723 35,473 34,129 32,144

3.2. The maintenance of continuous, reliable gas supply

Number of poor combustion/poor pressure incidents reported 0 6 12 21 63

Number of instances of out of specification gas distributed 0 1 0 1 0

3.3. The specification of each type of gas entering the Distribution System

Gas specification including odorant Included Included Included Included Included

The number and type of complaints made to the Entity in respect of the detectability of gas by odour, inadequate gas supply pressure or any other relevant matter minor complaints regarding reinstatement

84* 419** 552^ 1,145^^ 2065+


59


*A change to the complaints data management saw an increase in complaints for 2009/10 compared with 2008-09.

**In 2010-11 some reports that were previously considered as enquires have being classified as complaints, thus, the number has further increased over 2009-10.

^In 2011-12 better data collection and the higher level of field activity, and consumer reaction to high bills contributed to the increase in numbers.

^^In 2012-13 the high level of mains replacement activities carried out on the distribution network has led to an increase in complaints. + The record mains replacement carried out on the gas distribution network and more frequent interaction with the public have led to an increase in complaints in 2013-14.

Highest percentage of the LEL, must be <20%, at which odorant can be detected LEL = Lower Explosive Limit

Moomba Co-mingled South East (Katnook) *Non-compliant data. Envestra reported that this data is indicative of the test results from the one and only regional-based field operative. Further analysis of gas samples indicated accepted odorant levels in the networks. Further testing by more than one field operatives will be carried out.

13.0% 11.1% 16.5%

16.0% 14.6% 17%

12.5% 8.6% N/A

10.9% 9.0% 11.5%

13.7% 22.7%* 22.7%*

4. Reliability

4.1. Description and specification of Distribution System and its components

Length of distribution system 7645km 7722 7787 7836 7950

4.2. Non-standard designs/systems as approved by the Technical Regulator

Approved deviations from non-conformances to prescribed standards listed in Regulation 43 of the Gas Regulations 2012

0 0 0 0 0

4.3. Provide reliable information in respect of the total amount of UAFG lost from the Distribution System as a result of leakage or an activity referred to in Section 82(1) of the Act and to avoid unacceptable leakage of gas

Total UAFG (TJ) 2,133** 1,805*** 1,744^ 1,482^^ 1,331*

** Projected estimate for June 2010, as at 10 August 2010

*** Based on AEMO data as at 2 August 2011

^ Based on AEMO data as at 30 June 2012

^^ Based on AEMO data as at 30 July 2013

* Based on AEMO data as at 30 June 2014

Lost gas from leakage based on current estimated leakage rate (agreed at 80% UAFG) (TJ)

1,706 1,444 1,395 1,185 1,065


60


4.4. The extent to which the public are reporting gas leaks – mains and inlets services

Number of public reports of leaks 3,826*^ 3,980^ 3,652^^ 2,824* 4,017**

*^ This number includes 1388 public reports which were attended but where no leak was found.

^ This number includes 1400 public reports which were attended but where no leak was found.

^^ This number includes 1383 public reports which were attended but where no leak was found.

* This number includes 1319 public reports which were attended but where no leak was found.

** This number includes 1815 public reports which were attended but where no leak was found.

Number of leaks detected by Leakage Surveys (per km of surveyed mains)

0.35 0.28 0.20 0.09 0.08


4.5. Extent of Training

Training hours per direct employee 13 9 10 13.5 11.9

5. Connections

5.1. Ensuring that the gas installation safe before connecting or reconnecting to the Distribution System

Number of Certificates of Compliance received on connection of gas installation to the distribution system*

5,000 3,212 3,551 4,155 4,379

5.2. Extent of access to system as required by return

Number of consumer connections (at 30 June each year) 395,297 403,301 410,708 417,224 423,463

Number of new connections completed 8,800 10,351 8,919 8,621 8,202

Number of meters removed 1,962 1,750 1,700 1,709 1,658


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Appendix 7: Glossary and Abbreviations AEMO Australian Energy Market Operator

AGA

Australian Gas Association- this is a gas appliance certification body (CAB) proclaimed by the Governor

AMP Asset Management Plan

APA Australian Pipeline Group and other associated entities

AS Australian Standard

AS/NZS Australian or Joint Australian/New Zealand Standards

CAB Conformity Assessment Body

CBS Consumer Business Services “The licensing authority in S.A”.

CSAP Customer Safety Awareness Plan

CCASA Caravan and Camping Association of South Australia

CFS Country Fire Service

CI Cast Iron pipe

CLC Couple, Light and Check (See Safety Check)

CO Carbon Monoxide

‘Dial Before You Dig’

This telephone (1100) and internet service provides location information on infrastructure, such as gas pipelines, to protect these assets during excavation work

DPTI Departments of Planning, Transport and Infrastructure, formerly DTEI

ELS Environmental Land Services (Aust) Limited

Envestra Envestra Limited – entity holding a gas distribution licence in South Australia

ESCOSA Essential Services Commission of South Australia (responsible for licensing of gas entities)

Family A group of meters, defined by the meter type, model and year of installation

FTE

Full Time Equivalent – the number of full time employees who would work the same total hours being worked by a number of part time employees

GCC Gas Certificate of Compliance


62

Global Mark A gas appliance certification body (CAB) proclaimed by the Governor

GMMP Gas Measurement Management Plan

GTAC Gas Technical Advisory Committee

GTRC Gas Technical Regulators Committee

HWS Hot Water Service

IAPMO

International Association of Plumbing and Mechanical Officers – a gas appliance certification body (CAB) proclaimed by the Governor

I&C

Industrial and Commercial – classification of the group of larger non-domestic meters

Incident

Described in the Gas Regulations 2012 as an ‘accident’; an event causing death, injury or property damage; a gas related incident is when NG or LP Gas or their products of combustion is (or is suspected of being) directly involved

IGA Intergovernmental Agreement

In-house

Testing performed by the operator, using their own facilities, such as meter testing performed at the laboratory of APA Group depot

In-test

Removal of a meter from service and test in a laboratory; if the meter is found to be satisfactory, it can be made available for re-use (if not, it will be repaired or scrapped)

kg Kilogram (1000 grams) – unit of mass

km Kilometre (1000 metres) – unit of distance

kPa Kilo Pascal (1000 Pascals) – unit of pressure

KPI Key Performance Indicator

LEL

Lower explosive limit – the minimum amount of combustible gas in air at which the mixture is flammable

LP Gas Liquefied Petroleum Gas

LMP Leakage Management Plan

MCE Ministerial Council on Energy

MFS Metropolitan Fire Service

MJ/h Megajoules per hour – rate of flow of energy

MOU Memorandum Of Understanding


63

MRP Mains Replacement Program

NG Natural Gas

NGERAC National Gas Emergency Response Advisory Committee

NRC National Response Centre

Origin Energy LPG Ltd

Owner of five of the LP gas distribution systems within SA

OTR Office of the Technical Regulator

PMC Periodic Meter Changeover

QRA Quantitative Risk Assessment

QSN link

Queensland, South Australia and New South Wales link – pipeline from South West Queensland to the Moomba gas plant in SA

RDNS Royal District Nursing Society

Regulation Roundup

Bi-annual newsletter of the Technical Regulator to the gas and electrical industry

RIS Regulatory Impact Statement

Roadshow

Technical presentation by the Technical Regulator to gas fitters, provided free of charge annually in Adelaide city and regional centres

SafeWork SA

Formerly Workplace Services – government department that administers the Dangerous Substances Act

Safety check

Commonly known, in industry, as the ‘Couple, Light and Check’ – this is the safety check performed when a gas supply is first connected.

SAIG

Standards Australia International Global-this is among other things a gas appliance certification body (CAB) proclaimed by the Governor

SAPOL South Australian Police

SA Power Networks

Operator of the electricity distribution network in South Australia

SCO Standing Committee of Officials

SEA Gas pipeline

South East Australia Gas pipeline: gas pipeline that supplies natural gas from Victoria to Adelaide

SESA

South East South Australia pipeline: a lateral gas pipeline off the SEA Gas pipeline that supplies natural gas to the Mt Gambier region

SRMTMP Safety, Reliability, Maintenance and Technical Management Plan

Standards

Standards are either Australian or joint Australian and New Zealand standards, as issued by Standards Australia (or previously published by Australia Gas Association).


64

SWQ South West Queensland

STTM Short Term Trading Market

TJ Terajoule (one million megajoules) – unit of energy

TOR Terms of Reference

TTMRA Trans–Tasman Mutual Recognition Act 1997

Type A

Mass produced, gas appliances, primarily domestic appliances, which are pre-certified by testing prior to sale and installation

Type B

Gas appliances, primarily industrial appliances, which must be certified on site to AS 3814

UAFG

Unaccounted for gas – difference between the quantity of natural gas measured into the network and the quantity measured out at consumers’ meters; the difference may be due to leaking gas, differences in meter reading times, meter inaccuracy, gas theft, line pack differences and gas lost during commissioning of pipelines

UPS Unprotected Steel pipe

Documents

New Annual Report of the Technical Regulator 2013-14: Gas · 2018. 5. 21. · 7.2.1 AG-001, Gas Appliances Committee 44 7.2.2 AG-006, Gas Installation Committee (AS 5601) 44 7.2.3