victorian transmission system
The Victorian Transmission System or VTS (sometimes known as the Principal Transmission System, PTS or GasNet system) 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.
|Description||The Victorian Transmission System comprises approximately 1,992 kilometres of pipelines which transport gas from various inlet points to load centres throughout Victoria. Almost all the natural gas consumed in Victoria is transported through the VTS.|
The VTS is a covered pipeline under the National Gas Law and National Gas Rules, and has a full access arrangement.
Australian Energy Regulator (AER)
|Next Regulatory Review||
|Required Regulatory Documentation|
Information on current tariffs is available in the following documents:
Further information is available in ‘Tariff Calculation’, below.
|Related Assets, Facilities and Services|
|VTS Access Arrangement||Further details on the VTS Access Arrangement can be found here.|
Using the Victorian Transmission System
The VTS is operated by the Australian Energy Market Operator (AEMO) under the Victorian market carriage system. That is, while APA owns and maintains the VTS, AEMO is responsible for the shipment of gas through the VTS. To ship gas through the VTS, shippers must register with AEMO as a Participant in the Victorian wholesale gas market. In so doing shippers are bound by Part 19 of the National Gas Rules, which govern all Participants in the market. Under these rules shippers must enter into a Transmission Payment Deed with APA Group (APA). Shippers proposing to withdraw gas from the market must also enter into a connection agreement with either a gas distribution company or APA, or have arrangements to transport the gas to a connected transmission pipeline.
Under the terms of a Transmission Payment Deed, shippers agree to pay transmission tariffs directly to APA as owner of the VTS. Tariffs for use of the VTS are known as Transmission Use of System ("TUoS") charges. The TUoS charges reflect the cost to deliver gas from the 7 Injection Points to the 27 Withdrawal Zones and Points on the VTS.
A more comprehensive description of the Victorian gas market and the procedures for participating are available from the AEMO website.
Following are steps that need to be completed to be able to ship gas on the VTS. These steps can often be undertaken in parallel. It is strongly recommended that a party proposing to ship gas on the VTS be guided by AEMO as the operator of the system as to the full list of requirements.
Contact AEMO and obtain "Guide to the Victorian Gas Market" and registration kit.
Contact APA (Loretta Lee – 03 8626 8457) and relevant Distribution companies and/or operators of connecting transmission pipelines to indicate your interest in shipping gas.
If required, arrange gas supply with producer(s).
Gas can be injected into the system or bought from the wholesale gas market. If injecting gas, an Allocation Agent may be required at each Injection Point. (Where more than one shipper injects gas at a single Injection Point, the metered gas must be allocated to each shipper. AEMO can provide details of current Allocation Agents.)
Register with AEMO as a Participant in the gas wholesale market. Many of the steps outlined here are part of this process and registration will only be approved when all these have been completed
Enter into a Transmission Payment Deed with APA.
Meet prudential requirements for transacting business in the gas wholesale market. Market and System Operator (MSO) Rules require specific security to be provided to AEMO to cover potential exposure to market fees.
Ascertain and install required IT systems and connect to AEMO IT system. (It is necessary for shippers to be able to communicate with AEMO and other Market Participants through standard systems to exchange data for the wholesale gas market and, if necessary, the retail gas market.)
Enter into Connection Deed(s) with Distribution company(s) and/or APA and have Connection Deed(s) approved by AEMO. A shipper must have acceptable arrangements in place to allow gas to be withdrawn from the VTS. The National Gas Rules require these agreements to be approved by AEMO.
Provide billing contact details to APA (Loretta Lee – 03 8626 8457), Distribution company(s) and AEMO. APA will invoice a shipper directly for its TUoS charges.
When gas is shipped on the VTS, tariffs are payable to both APA and AEMO. This page provides details on APA tariffs, their application and the historical volume data since the start of the regulated tariff regime. For details of AEMO tariffs and their application please refer to AEMO.
If you have any queries regarding the role of the VTS in the Victorian gas industry or the processes outlined above contact Loretta Lee (03 8626 8457).
Access Arrangement and Tariff Schedules
The VTS Access Arrangement defines the terms and conditions and the reference tariffs under which third parties may ship gas on the VTS. The charges levied for shipment of gas through the VTS are governed by the provisions contained in the Schedules to the VTS Access Arrangement.
The current VTS Access Arrangement documentation can be accessed from the link in the table above.
Previous Access Arrangement documentation may be found on the AER website.
APA Contact: Scott Young (02 9275 0031)
The VTS Access Arrangement transmission tariffs involve different tariff applicability depending on the combination of injection and withdrawal volumes for a shipper on a daily basis. This requires complex calculations to match injections to withdrawals. The following model is provided to allow a shipper to process monthly transmission volumes as reported by AEMO to calculate their VTS tariff obligations. The Monthly Charging Model can be downloaded here.
The Transmission Tariff Calculator is provided to allow users to calculate the effective delivered charge for transmission of gas through the VTS to a final consumer. It allows the user to specify the location and characteristics of any gas load on the system and the source or sources of the gas. The current Tariff Calculator can be downloaded from the link in the table above.
From the Access Arrangement period commencing 1 January 2003, tariffs have been partly based on the 10 days of peak injection at the system injection zones during the winter period of each year. Annual peak day historical data for each injection zone can be downloaded here.
APA owns and operates a Victorian metering business, comprising approximately 150 meters, servicing distribution networks, GPG and major industrial users. Customers are supplied through the Victorian Transmission System (VTS) and pay a negotiated fee for supply and ongoing operation. Growth in this business reflects growth in the VTS, with new meters required to cater to the expansion of the system to meet market demands. The metering business is not regulated under the National Gas Code and APA does not anticipate a change in this situation.