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CA004 Economic regulation

Commercial Aspects

Competency ID
and title

CA004 Economic regulation

Competency area

Commercial Aspects

Stream/s

Operations

Level

Elective

Competency descriptor
This competency requires a pipeline engineer to have an understanding of the economic regulation applying to pipelines, and specific knowledge of requirements that relate to capital and operating expenditure.

Competency application
This competency enables a pipeline engineer to actively support economic regulatory activity applicable to pipelines, usually relating to historic and forecast capital and operating expenditure of pipelines.

Prerequisites
CA001 – Commercial aspects fundamentals

Competency elements

Element type

Element description

Knowledge

Natural gas pipelines regulatory framework and context:

·         Overview of National Gas Law (NGL) and Rules (NGR).

·         Key regulatory bodies and their roles:

o    Australian Energy Regulator (AER)

o    Australian Energy Market Commission (AEMC)

o    Australian Energy Market Operator (AEMO)

o    Economic Regulation Authority of WA (ERAWA).

Economic (or access) regulation of natural gas pipelines

·         Key concepts:

o    Covered and uncovered pipelines.

o    Light Regulation and Full Regulation.

o    Full and Limited Access Arrangements.

o    Access Arrangement reviews and their processes.

o    The components which make up a pipeline tariff.

o    Principles around which an access arrangement will be assessed by the economic regulator (AER)

o   Efficient and prudent expenditure. Information provision requirements – access arrangement information, regulatory information notices (RIN), general regulatory information orders (GRIO).

Experience

Participated in a team providing information in relation to an access arrangement for one access arrangement review and one annual response to a regulatory information notice (RIN) or general regulatory information order (GRIO).

Expertise

Gathers and collates appropriate information on capital and operating expenditure, both forecast and historic, for provision to the AER, such that it will support claims as to the efficiency and prudence of the expenditure.

Preparing project expenditure proposals suitable for inclusion in regulatory submissions to the regulator.

Resulting capabilities of competency

  • Capable of being responsible for the gathering and collating of information about capital and operating expenditure as part of an access arrangement review or RIN or GRIO response