Australian gas and power distributor Jemena has been fined A$135,600 ($91,000) by the Australian Energy Regulator (AER) over alleged breaches of laws related to pipeline flow information. Jemena’s subsidiary, Jemena Northern Gas Pipeline (NGP), reportedly failed to provide up-to-date capacity outlooks to the Australian Energy Market Operator between October 2020 and December 2022. The 622km NGP is a vital link between Tennant Creek in the Northern Territory and the mining town of Mount Isa in Queensland. The AER stated that these breaches undermined the operations of the Gas Bulletin Board and eroded market participants’ trust in the data. However, Jemena’s payment of fines does not imply an admission of liability.
Previously in June, Jemena faced charges across four of its subsidiaries for alleged failures to comply with gas transport rules. To enhance energy market compliance and enforcement activity, the AER has received an additional A$36.6mn in federal funding over four years, starting from 2023-24.
Jemena’s failure to provide accurate capacity outlooks for the NGP highlights the importance of reliable and up-to-date information in the gas market. The AER’s board member, Justin Oliver, emphasized the impact of these breaches on market operations and trust in data. He stated, The breaches undermined the Gas Bulletin Board’s operations and market participants’ trust in its data. However, the payment of fines does not indicate Jemena’s acceptance of liability for the alleged breaches.
These recent fines add to the legal challenges faced by Jemena, as charges were already filed against the company in June for alleged failures to comply with gas transport rules across four of its subsidiaries. The exact details of these charges remain undisclosed.
Recognizing the need for increased energy market compliance and enforcement, the Australian government has allocated A$36.6mn in federal funding to the AER over the next four years. This investment aims to strengthen regulatory oversight and ensure greater adherence to energy market rules.
The fine imposed on Jemena highlights the significance of compliance in the energy industry. Adherence to regulatory requirements is essential for maintaining the smooth functioning of the gas market and upholding trust among market participants. The accuracy and timeliness of data are key factors that enable efficient decision-making and fair competition.
As Jemena takes steps to address these allegations and rectify its compliance practices, it serves as a reminder to other energy market participants to prioritize regulatory adherence. Transparent and reliable information is crucial for a well-functioning gas market, and market operators must remain vigilant in fulfilling their obligations.
In conclusion, Jemena has been fined A$135,600 by the AER for alleged breaches concerning pipeline flow information related to the NGP. These breaches undermined the Gas Bulletin Board’s operations and market participants’ trust in its data. The company’s payment of fines does not equate to an admission of liability. Additionally, Jemena has faced charges in June for alleged failures to comply with gas transport rules across multiple subsidiaries. To enhance energy market compliance, the AER has also received additional federal funding. Reliable and up-to-date data is crucial for a well-functioning gas market, and all market participants must prioritize regulatory adherence to uphold trust and fair competition.
