The Victorian Transmission System (VTS) is owned and maintained by APA but operated by the Australian Energy Market Operator (AEMO) under a market-based centrally co-ordinated carriage system under the National Gas Rules.

The Victorian Transmission System comprises approximately 1,992 kilometres of pipelines transporting gas from various inlet points to load centres throughout Victoria. Almost all the natural gas consumed in Victoria is transported through the VTS.

The Victorian Transmission System is fully regulated, which means that prices for reference services and the terms and conditions are subject to regulatory oversight by the Australian Energy Regulator. The key regulation instrument is the pipeline’s Access Arrangement, which must be consistent with the national gas objective.

The national gas objective requires that we efficiently invest in, and efficiently operate, the VTS in the long-term interest of consumers. This is in line with APA’s Purpose, our Customer Promise, Values and Decision Compass.

An access arrangement must be revised periodically. The VTS Access Arrangement for the current regulatory period must be revised by 1 January 2023. We are now preparing the revised access arrangement for the 2023–27 regulatory period.

Before submitting the access arrangement revision proposal to the regulator on 1 December 2021, APA will be engaging with VTS stakeholders to gain their insights, hear their views and to answer any questions arising throughout this process. Involvement by the VTS Stakeholder Engagement Group will help shape our plans for the VTS. Our guiding principles for this engagement are:

  • No surprises: we want to reveal as much as possible about our plans ahead of making our submission to the regulator.
  • Clear, accurate and timely communication: we will aim to prepare information to allow sufficient time for you to consider and provide feedback.
  • Easy to understand: we will not become too technical and we will prepare information that can be read and understood by a wide audience.
  • Transparent: we will aim to be transparent about our thinking and plans but, as an ASX-listed company, there are rules about what we can and can’t make public.
  • Consumer influence: we aim to be open about what is and what isn’t open to consumer influence.

VTS Engagement Timeline

Here are the key dates for engagement on the VTS revised access arrangement.

(R = Roundtable)

18 October 2020 — R1: Setting the scene – overview
25 November 2020 — R2: Victoria’s market carriage model; VTS reference service
10 February 2021 — R3: VTS Asset management – key issues and projects for 2023-27 period
Mid-March 2021 — R4: Regulatory building block and tariffs; case study on capital expenditure
Mid-April 2021 — R5. VTS demand and utilisation; AEMO Victorian Gas Planning Report (VGPR)
Mid-May 2021 — R6: Capital program
Mid-June 2021 — R7: AER decision on reference services; access arrangement (general)
Mid-July 2021 — R8: Total revenue, revenue allocation and tariffs/pricing structures
Mid-August 2021 — R9: Proposed tariff structure
Mid-September 2021 — R10: Proposed tariff structure
Early October — APA to release early consultation draft proposal
Mid-October — R11: Early consultation proposal discussion
Mid-November 2021 — R12: Our proposals and how you shaped our thinking
1 December 2021 — APA submits access arrangement proposal to AER

Documentation

All VTS engagement documents are on this webpage.

Contact

Please email [email protected] to ask any questions or provide feedback on the APA’s VTS access arrangement or stakeholder engagement plans, to request an invite to an engagement session, or to arrange a private consultation.