NATIONAL THIRD PARTY ACCESS CODE FOR NATURAL GAS PIPELINE SYSTEMS - REG 3.16
NATIONAL THIRD PARTY ACCESS CODE FOR NATURAL GAS PIPELINE SYSTEMS - REG 3.16
3.16 Extensions/Expansions Policy
An Access Arrangement
must include a policy (an Extensions/Expansions Policy ) which sets out:
(a) the
method to be applied to determine whether any extension to, or expansion of
the Capacity of, the Covered Pipeline:
(i)
should be treated as part of the Covered Pipeline for all
purposes under the Code; or
(ii)
should not be treated as part of the Covered Pipeline for
any purpose under the Code;
(for example, the
Extensions/Expansions Policy could provide that the Service Provider may, with
the Relevant Regulator’s consent, elect at some point in time whether or
not an extension or expansion will be part of the Covered Pipeline or will not
be part of the Covered Pipeline);
(b)
specify how any extension or expansion which is to be treated as part of the
Covered Pipeline will affect Reference Tariffs (for example, the
Extensions/Expansions Policy could provide:
(i)
Reference Tariffs will remain unchanged but a Surcharge
may be levied on Incremental Users where permitted by sections 8.25 and 8.26;
or
(ii)
specify that a review will be triggered and that the
Service Provider must submit revisions to the Access Arrangement pursuant to
section 2.28) ;
(c) if
the Service Provider agrees to fund New Facilities if certain conditions are
met, a description of those New Facilities and the conditions on which the
Service Provider will fund the New Facilities.
The Relevant Regulator
may not require the Extensions/Expansions Policy to state that the Service
Provider will fund New Facilities unless the Service Provider agrees.