Tasmania: Gas Industry Act 2019 (Tas)

Gas Industry Act 2019 An Act to regulate gas activities, to repeal the Gas Act 2000 and the Gas Pipelines Act 2000 , and for related purposes [Royal Assent 9 April 2019] Be it enacted by Her Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows: PART 1 - Preliminary 1. Short title This Act may be cited as the Gas Industry Act 2019 . 2. Commencement The provisions of this Act commence on a day or days to be proclaimed. 3. Interpretation (1) In this Act, unless the contrary intention appears – affected gas infrastructure means the gas infrastructure in respect of which a gas infrastructure planning corridor has been declared under section 49 ; approved form means a form approved by the Regulator; AS 2885 means AS 2885 Pipelines – Gas and Liquid Petroleum published by the Standards Association of Australia, as in force from time to time, and includes any code or standard having effect under that standard; AS 4645 means AS 4645 Gas Distribution Networks published by the Standards Association of Australia, as in force from time to time, and includes any code or standard having effect under that standard; authorised officer means a person appointed to be an authorised officer under section 65(1) ; available for supply – see subsection (3) ; business customer means a customer who is not a residential customer; business day means any day other than a Saturday, Sunday or statutory holiday within the meaning of the Statutory Holidays Act 2000 ; condition includes a limitation or restriction; customer means a person to whom gas is available for supply for consumption in a place, and includes the following: (a) the occupier for the time being of a place to which gas is supplied for consumption in the place; (b) a person to whom gas is available for such supply and who seeks such supply; (c) a person whose supply of gas has been disconnected; Director of Gas Safety means the Director of Gas Safety appointed under the Gas Safety Act 2019 ; disconnect, in relation to a gas supply, includes to interrupt or discontinue the gas supply; discretionary development means a development or use to which section 57 of the Land Use Planning and Approvals Act 1993 applies; distribution system means the whole or part of a pipe, or of a system of pipes and equipment, with an operating pressure not exceeding 1050 kPa, for use in, or in connection with, the distribution and delivery of gas to persons for consumption, but does not include the following: (a) a transmission pipeline; (b) a system of pipes and equipment – (i) installed in a place for the conveyance and use of gas from a pressurised vessel situated in that place; and (ii) not extending to, or connected to, pipes in some other place in separate occupation; (c) pipes or equipment declared by the regulations not to be, or not to form part of, a distribution system; function includes duty; gas means the following: (a) natural gas; (b) liquefied petroleum gas; (c) any other substance declared by the regulations to be gas for the purposes of this Act; gas activity – see section 6 ; gas infrastructure means any part of a distribution system or a transmission pipeline but does not include a pipe, or system of pipes, that – (a) is used to convey gas; and (b) is not connected to some other place in separate occupation; gas infrastructure activities means the activities referred to in section 6(2) ; gas infrastructure land means land to which a gas infrastructure land interest relates; gas infrastructure land interest means an interest in land, including an easement, acquired for the construction, maintenance or operation of gas infrastructure; gas infrastructure licence means a licence that authorises the carrying out of gas infrastructure activities; gas infrastructure licensee means a person who holds a gas infrastructure licence; gas infrastructure planning corridor means a gas infrastructure planning corridor declared by an order in force under section 49 ; gas officer means a person appointed to be a gas officer under section 54 ; gas retail licence means a licence that authorises the carrying out of the activity of the selling of gas by retail; gas retailer means a person who holds a gas retail licence; land includes – (a) an estate or interest in land (including an easement); and (b) a right or power over, or in respect of, land; licence means a licence granted and in force under this Act; licensee means a person who holds or has held a licence, authorising the carrying out of a gas activity, and includes such a licence that is or has been suspended, has been cancelled or has expired; liquefied petroleum gas means a hydrocarbon composed predominantly of one or more of the following hydrocarbons: (a) propane (C3H8); (b) propene (propylene)(C3H6); (c) butane (C4H10); (d) butane (butylene)(C4H8); natural gas means a substance which – (a) is in a gaseous state at standard temperature and pressure; and (b) consists of naturally occurring hydrocarbons, or a naturally occurring mixture of hydrocarbons and non-hydrocarbons, the principal constituent of which is methane – and includes processed natural gas but does not include anything declared by the regulations not to be natural gas; occupier of land or a place means a person who has, or is entitled to, possession or control of the land or place; operational work, in relation to gas infrastructure, means – (a) locating, inspecting, testing, operating, maintaining, repairing, altering, adding to, upgrading, replacing or removing the gas infrastructure; and (b) excavating land in order to carry out work of a kind referred to in paragraph (a) ; owner of land means – (a) if the land has been alienated from the Crown by the grant of an estate in fee simple or another estate or interest conferring a right to possession of the land – the person who holds the relevant estate or interest; or (b) in any other case – the Regulator or an authority or other person responsible for the management of the land; permitted development means a development or use to which section 58 of the Land Use Planning and Approvals Act 1993 applies; person includes – (a) any body of persons, corporate or unincorporate; and (b) any government department or other government body; planning authority means a planning authority within the meaning of the Land Use Planning and Approvals Act 1993 ; processed natural gas means a natural gas that has been processed to be suitable for consumption but does not include anything declared by the regulations not to be processed natural gas; protective work, in relation to gas infrastructure, means – (a) work that is necessary or expedient for the protection of the infrastructure or public safety; and (b) excavating land in order to carry out work of the kind referred to in paragraph (a) ; public land means land owned by – (a) the Crown; or (b) an instrumentality or agent of the Crown; or (c) a council or other local government body; record includes – (a) a record in the form of a book or document, or in the form of a map; and (b) a record in the form of electronic data; regulated substance means – (a) gas; and (b) any other substance declared by the regulations to be a substance to which this Act applies; regulations means regulations made and in force under this Act; Regulator means the Tasmanian Economic Regulator appointed under section 9 of the Economic Regulator Act 2009 ; residential customer means a customer who purchases gas principally for personal, household or domestic use; safety condition means a condition, imposed on a permit for a permitted or discretionary development, in order to apply, adopt or otherwise give effect to a safety requirement contained in AS 2885 or AS 4645; sell includes – (a) to barter or exchange; and (b) to let on hire; and (c) to advertise for sale or hire; and (d) to offer or expose for sale or hire; small customer means – (a) a residential customer; or (b) a business customer whose consumption of gas is not more than one terajoule per annum; supply means the delivery of gas, by means of gas infrastructure, to a customer; transmission pipeline means – (a) the whole or any part of a pipeline, with an operating pressure in excess of 1050kPa, for conveying a regulated substance from a point at or near the place of its production to any other place; and (b) the whole or any part of a pipeline that forms part of a system of pipelines for that purpose; and (c) tanks, machinery and equipment necessary for, or associated with, the operation of such a pipeline or system of pipelines – but does not include the following: (d) a pipeline located wholly within the site of an industrial plant; (e) a pipeline that forms part of a gas distribution system; (f) a system of pipes and equipment – (i) installed in a place for the conveyance and use of gas from a pressurised vessel situated in that place; and (ii) not extending to, or connected to, pipes in some other place in separate occupation; (g) pipes or equipment declared by the regulations not to be, or not to form part of, a transmission pipeline; (h) any part of a pipeline referred to in paragraph (d) or (e) for which a licence is required under the Petroleum (Submerged Lands) Act 1982 of Tasmania or the Petroleum (Submerged Lands) Act 1967 of the Commonwealth; Tribunal means the Tasmanian Civil and Administrative Tribunal; upgrading, in relation to gas infrastructure, includes the insertion of a new pipe inside any existing pipe that forms part of the infrastructure. (2) In this Act, a reference to the retailing of gas or the selling of gas by retail – (a) is a reference to the sale of gas by a licensee to a person for consumption where the gas is to be conveyed (whether or not by the seller) to the person by a distribution system; but (b) does not include an activity declared by the regulations not to be the selling of gas by retail. (3) For the purposes of this Act, gas is available for supply to a person if the gas infrastructure is technically suitable to meet the gas supply requirements of the person. (4) For the purposes of this Act, a person is related to another person if – (a) they are both bodies corporate and they are related bodies corporate within the meaning of the Corporations Act; or (b) where one of the persons is a natural person and the other is a private company – the natural person is a majority shareholder or director of the company or of another private company that is a related body corporate of the company within the meaning of the Corporations Act. 4. Act binds Crown This Act binds the Crown in right of Tasmania, and so far as the legislative power of Parliament permits, the Crown in all its other capacities. 5. Act does not derogate from certain Acts This Act is in addition to, and does not derogate from, the Gas Safety Act 2019 . 6. Gas activities and gas infrastructure activities (1) For the purposes of this Act, the following are gas activities: (a) gas infrastructure activities; (b) the selling of gas by retail; (c) an activity prescribed in the regulations for the purposes of this section. (2) For the purposes of this Act – gas infrastructure activities includes the following: (a) constructing or installing gas infrastructure; (b) maintaining or altering gas infrastructure; (c) operating gas infrastructure. PART 2 - Administration Division 1 - Functions and powers of Regulator 7. Functions of Regulator (1) The Regulator has the following functions under this Act: (a) the administration of the licensing system, for gas licensees, established by this Act; (b) the establishment, monitoring and publication of standards and codes in respect of gas activities provided by gas licensees or arising from any functions performed for the purposes of this Act; (c) any other functions assigned to the Regulator under this Act. (2) The Regulator must, in performing any functions of a discretionary nature, endeavour to act in a fair and equitable manner, taking proper account of – (a) the interests of licensees; and (b) the interests of customers. (3) Nothing in subsection (1) or (2) gives rise to, or can be taken into account in, any civil cause of action. 8. Delegation The Regulator may, by instrument in writing, delegate to any person who, in the Regulator's opinion, is competent and suitable, the exercise of the powers of the Regulator under this Act (other than this power of delegation) that are specified in the instrument of delegation. 9. Regulator may require information to be provided (1) The Regulator may, by notice in writing given to a person, require the person to give the Regulator, within a reasonable time stated in the notice, information in the person's possession that the Regulator reasonably requires for the administration of this Act. (2) A person required to give information by a notice under subsection (1) must provide the information within the time stated in the notice. Penalty: Fine not exceeding 100 penalty units. (3) A person may not be compelled to give information in accordance with a notice under subsection (1) if the information might tend to incriminate the person. (4) A decision to impose a requirement under this section is not a reviewable decision under Division 1 of Part 7 . 10. Regulator may give directions (1) The Regulator may, by notice in writing given to a licensee, direct the licensee – (a) to carry out, within a period specified in the notice, obligations under this Act, or the licence, that are specified in the notice; or (b) to cease activities, specified in the notice, that constitute, or are likely to constitute, a contravention of this Act or the licence. (2) A licensee must comply with a direction given to the licensee in a notice under subsection (1) . Penalty: Fine not exceeding 1 200 penalty units and, in the case of a continuing offence, a further fine not exceeding 500 penalty units for each day during which the offence continues. (3) If the licensee fails to comply with a direction given to the licensee in a notice under subsection (1) , the Regulator may – (a) take the action required to be taken for the direction to be complied with or arrange for the action, required for the direction to be complied with, to be taken; and (b) recover from the licensee in any court of competent jurisdiction, as a debt due to the Crown, the cost of the taking of the action. 11. Regulator may carry out surveys and inspections The Regulator may – (a) undertake surveys, and inspections, for the purpose of determining whether the terms and conditions of a licence are being complied with; and (b) enter land for the purpose of undertaking such a survey or inspection. 12. Mediation of disputes (1) Subject to subsection (5) , if a dispute arises as to the activities of a licensee under a licence, a party to the dispute may request the Regulator to mediate in the dispute. (2) If the Regulator has been requested under subsection (1) to mediate in a dispute, the Regulator – (a) may mediate, or decline to mediate, in the dispute; and (b) may give, to the parties to the dispute, directions to assist in the resolution of the matters to which the dispute relates; and (c) must make a reasonable attempt to assist the parties to agree to a settlement, of the dispute, that is negotiated between the parties. (3) If the parties to a dispute in which the Regulator has mediated agree to a settlement of the dispute, the parties and the Regulator must sign a document setting out the terms of the settlement. (4) The terms of a settlement of a dispute signed under subsection (3) are binding on the parties to the dispute. (5) This section does not apply to a dispute between a licensee and a customer to whom gas is retailed. 13. Regulator may take court action on behalf of customers If a customer or a class of customers could take any action in a court or tribunal to enforce a right under, or to enforce compliance with, this Act or a code made under this Act, the Regulator may take that action on behalf of the customer or class of customers. 14. Enforcement of Act by Regulator (1) If the Regulator is satisfied that a licensee has contravened this Act or a condition of the licence held by the licensee, the Regulator may impose on the licensee a monetary penalty not exceeding – (a) 5 000 penalty units for the first day on which the contravention occurs; and (b) a further fine not exceeding 200 penalty units for each subsequent day during which the contravention continues. (2) If there is more than one licensee that may be taken to have contravened this Act in respect of a single event, the Regulator may take any action under this section in respect of one or more such licensees as the Regulator thinks fit. 15. State of the industry report (1) The Regulator may prepare a report on the state of the industries involved in gas activities. (2) The Regulator is to prepare a state of the industry report – (a) on the Regulator's own initiative; or (b) if directed to do so by the Minister responsible for energy and the Minister assigned the administration of the Economic Regulator Act 2009 . (3) A direction under subsection (2)(b) to prepare a state of the industry report may include the terms of reference for that state of the industry report. (4) The Regulator is to cause a copy of the state of the industry report to be – (a) laid before each House of Parliament within 7 sitting-days after preparing it; and (b) made available to members of the public in the manner that the Regulator considers appropriate. Division 2 - Miscellaneous 16. Regulator to preserve confidentiality (1) The Regulator must preserve the confidentiality of information gained in the course of administering this Act (including information gained by an authorised officer under Division 2 of Part 6 ) that – (a) could affect the competitive position of a licensee or other person; or (b) is commercially sensitive for some other reason. (2) Subsection (1) does not apply to the disclosure of information between persons engaged in the administration of this Act. (3) Information classified by the Regulator as confidential is not liable to disclosure under the Right to Information Act 2009 . 17. Annual report by Regulator The annual report made under the Economic Regulator Act 2009 by the Regulator, within the meaning of that Act, is to include a report on the performance and exercise under this Act of the functions and powers of the Regulator within the meaning of this Act. 18. Advisory committees (1) The Minister or the Regulator may establish an advisory committee to advise the Minister or the Regulator, respectively, on specified aspects of the administration of this Act. (2) The members of an advisory committee established under this section by the Minister are appointed and hold office on the terms and conditions that the Minister determines. (3) The members of an advisory committee established under this section by the Regulator are appointed and hold office on the terms and conditions that the Regulator determines. 19. Exclusive franchise (1) The Governor may, by order published in the Gazette, determine that a person has an exclusive franchise to carry out – (a) a gas infrastructure activity specified in the order; or (b) a gas infrastructure activity, specified in the order, in relation to an area of land specified in the order. (2) An order may only declare that a person has an exclusive franchise to carry out a gas infrastructure activity, or a gas infrastructure activity, specified in the order, in relation to an area of land specified in the order, if there is no other licence in respect of both the same gas infrastructure activity, and the same area of land, as the activity and area to which the order relates. (3) The franchise may be expressed to be exclusive to the extent that is specified in the order. (4) An order that declares a person to have an exclusive franchise in relation to a gas infrastructure activity may specify that the person also has an exclusive franchise in relation to gas retailing, to the extent necessary or desirable to ensure the commercial viability of the exclusive franchise in relation to a gas infrastructure activity. (5) The order – (a) is to specify the person to whom the exclusive franchise is, if a licence is granted to the person in relation to the gas infrastructure activity, to be granted; and (b) is to specify the area of land within which the exclusive franchise applies; and (c) is to specify the period of the exclusive franchise; and (d) is to contain any other conditions which the Minister requires the Regulator to include in the licence referred to in paragraph (a) , if any, under which the exclusive franchise is to be granted. (6) The Regulator must exercise its powers under this Act, including but not limited to the power to grant or renew a licence, so as to give effect to the order, if the licence may, in accordance with Division 2 of Part 3 , be granted to the person or renewed, as the case may be. (7) The Minister may require the payment of a fee for the grant of an exclusive franchise and may direct the Regulator not to grant the proposed licence until the fee is paid. (8) The period of an exclusive franchise need not be the same as the period of the licence to which the exclusive franchise relates. (9) An exclusive franchise may be subject to conditions – (a) requiring or relating to standard contractual terms and conditions to apply to the selling of gas by retail to customers or customers of a prescribed class; or (b) requiring the licensee to comply with specified minimum standards of service in respect of the licensee's customers or customers of a prescribed class, and requiring monitoring and reporting of levels of compliance with those standards. (10) The Governor may, by order published in the Gazette, revoke or amend an order made under subsection (1) . (11) If the Governor revokes an order made under subsection (1) , a licence granted or renewed in accordance with the order remains in force, but is no longer to be taken to grant an exclusive franchise. PART 3 - Licensing Division 1 - Licences required for gas activities 20. Person not to carry out gas activities without a licence (1) A person must not carry out a gas activity except under and in accordance with a licence authorising the carrying out of the gas activity. Penalty: Fine not exceeding 1 200 penalty units. (2) Subsection (1) does not apply to a person carrying out a gas activity either – (a) in accordance with a direction under section 10 ; or (b) as part of the carrying out of activities that the person has been appointed to take over under Part 8 . Division 2 - Application, grant and renewal of licences 21. Application for grant of licence (1) A body corporate, or a partnership of 2 or more bodies corporate, may apply to the Regulator for the grant of a licence. (2) An application for the grant of a licence – (a) must be made in an approved form; and (b) must be accompanied by a statement as to – (i) the directors, secretary and public officer of the applicant or applicants; and (ii) any other person who is able to control the affairs of the applicant or applicants; and (c) must be accompanied by a statement showing, to the satisfaction of the Regulator, the human, financial and technical resources available to the applicant or applicants; and (d) must be accompanied by the application fee determined under subsection (3) in relation to the application; and (e) must be accompanied by the information that the Regulator reasonably requires. (3) The Regulator may determine for the purposes of subsection (2)(d) an application fee of an amount that the Regulator considers is required to meet the reasonable costs of the Regulator in determining the application. (4) The Regulator may, as the Regulator considers appropriate, accept a single application, or may require separate applications, from an applicant in respect of – (a) different gas activities of the applicant; or (b) different gas activities of the applicant at different locations. (5) The Regulator may require an applicant for a licence to provide any further relevant information that the Regulator thinks is required to enable the assessment and determination of the application. (6) If an applicant fails to comply with a requirement under subsection (5) within 30 business days, or a longer period allowed by the Regulator, the application lapses. (7) The Regulator must ensure that notice of an application for the grant of a licence is published, at least 30 business days before the application is determined by the Regulator, in the Gazette or in another manner that the Regulator considers appropriate. 22. Grant of licence (1) The Regulator, within 40 business days after the later of the following: (a) receiving an application for the grant of a licence; (b) the provision of any further relevant information required under section 21(5) in relation to an application for the grant of a licence – must determine the application by – (c) granting the licence; or (d) refusing to grant the licence. (2) The Regulator may only grant a licence if the Regulator is satisfied that – (a) the applicant is a body corporate or a partnership of 2 or more bodies corporate; and (b) the applicant is suitable to hold the licence; and (c) if the licence is to authorise the construction of, or alteration to, gas infrastructure – any other permit or other authority required by or under another Act of the State or the Commonwealth has been granted to the applicant or in relation to the gas infrastructure; and (d) the applicant can demonstrate that the applicant has complied with, or intends to comply with, the requirements of this Act. (3) In deciding whether an applicant is a suitable person to hold a licence, the Regulator may consider – (a) the applicant's previous commercial and other dealings and the standard of honesty and integrity shown in those dealings; and (b) the financial, technical and human resources available to the applicant; and (c) the officers and, if applicable, major shareholders, of the applicant and their previous commercial and other dealings and the standard of honesty and integrity shown in those dealings (including breaches of statutory and other legal obligations); and (d) any other matters prescribed by the regulations. (4) The Regulator may only grant a gas infrastructure licence if the Regulator has been provided with a copy of a certificate issued under the Gas Safety Act 2019 certifying that the gas infrastructure is, or the proposed gas infrastructure will be, able to safely convey, or safely process, the regulated substance intended to be processed or conveyed under the licence. (5) The Regulator may not grant a licence that authorises the carrying out of both the selling of gas by retail and gas infrastructure activities, but, where the holder of a licence holds, or may hold, both such licences, may include in either or both such licences terms or conditions necessary to ensure that the carrying out of operations and business under each of the licences is adequately separate from the carrying out of operations and business under each of the other licences. (6) As soon as practicable after determining under subsection (1) an application for the grant of a licence, the Regulator is to – (a) notify of the determination the person who made the application and, if the determination was to refuse to grant the licence, the reasons for the determination; and (b) publish notice of the determination in the Gazette or in another manner that the Regulator considers appropriate. 23. Application for renewal of licence (1) The licensee may apply to the Regulator for the renewal of the licence. (2) The licensee may apply to the Regulator for the renewal of so much of the licence as does not authorise the carrying out of an activity specified in the application. (3) An application under subsection (1) or (2) for renewal – (a) must be made in an approved form; and (b) must be accompanied by the application fee prescribed by the regulations; and (c) must be accompanied by the information that the Regulator reasonably requires. (4) An application under subsection (1) or (2) in relation to a licence must be made at least 3 months, and not more than 6 months or a longer period authorised by the Regulator under subsection (5) , before the end of the term of the licence. (5) The Regulator may, by notice in writing to the licensee, extend the period of 6 months referred to in subsection (4) . (6) The Regulator must ensure that notice of an application under subsection (1) or (2) in relation to a licence is published, at least 30 business days before the application is determined by the Regulator, in the Gazette or in another manner that the Regulator considers appropriate. (7) The Regulator may require an applicant under subsection (1) or (2) in relation to a licence to provide any further relevant information that the Regulator thinks is required to enable the assessment and determination of the application. (8) If an applicant fails to comply with a requirement under subsection (7) within 30 business days or a longer period allowed by the Regulator, the application lapses. (9) If the Regulator grants an application for renewal of so much of the licence as does not authorise the carrying out of an activity specified in the application, the Regulator is to revoke those terms and conditions that authorise the carrying out of the activity. 24. Renewal of licence (1) The Regulator, within 40 business days of – (a) receiving an application under section 23(1) or (2) in relation to a licence; or (b) the provision of any further relevant information required under section 23(7) in relation to an application under section 23(1) or (2) in relation to a licence – whichever is the later, must determine the application by approving, or refusing to approve, the renewal of the licence or the renewal of so much of the licence as does not authorise the carrying out of an activity specified in the application, respectively. (2) The Regulator must determine under subsection (1) an application under section 23(1) or (2) in relation to a licence by renewing the licence, or so much of the licence as does not authorise the carrying out of an activity specified in the application, as the case may be, unless the Regulator is satisfied that – (a) the applicant has been guilty of a material contravention of a requirement imposed by or under this Act, or any other Act, in connection with the gas activities under this Act and is satisfied that the contravention is such that the licence ought not be renewed; or (b) if the application had been for the grant of a licence in respect of the operation to which the application relates, the Regulator would not have granted the licence. (3) As soon as practicable after determining under subsection (1) an application under section 23(1) or (2) in relation to a licence, the Regulator is to – (a) notify of the determination the person who made the application and, if the determination was to refuse to renew the licence, the reasons for the determination; and (b) publish notice of the determination in the Gazette or in another manner that the Regulator considers appropriate. 25. Precondition to grant or renewal of licences (1) If the Regulator intends to grant or renew a licence, or renew so much of the licence as does not authorise the carrying out of an activity, the Regulator may issue to the applicant a notice requiring security to be given in relation to the licence. (2) A notice requiring security to be given in relation to a licence is a notice specifying that the licence will only be granted or renewed, or so much of the licence as does not authorise the carrying out of an activity will be renewed, if the applicant gives, by the date specified in the notice, a security, in the amount and form decided by the Regulator and specified in the notice, for the due performance by the licensee of the obligations of the licensee under this Act or the licence. (3) If the Regulator issues a notice under subsection (1) to an applicant for the grant or renewal of a licence, or so much of the licence as does not authorise the carrying out of an activity, the Regulator may refuse to grant or renew the licence, or so much of the licence as does not authorise the carrying out of an activity, respectively, until the applicant gives, by the date specified in the notice, a security, in the amount and form decided by the Regulator and specified in the notice, for the due performance by the licensee of the obligations of the licensee under this Act or the licence. 26. Licence fees and returns (1) An applicant for the grant or renewal of a licence, or so much of the licence as does not authorise the carrying out of an activity, for a term of 2 years or more is not entitled to the grant or renewal of the licence, or so much of the licence as does not authorise the carrying out of an activity, respectively, unless the applicant has paid to the Regulator, by the date notified by the Regulator, the relevant licence fee or the first instalment of that fee in relation to the licence. (2) A licensee issued with a licence for a term of 2 years or more must – (a) in each year lodge with the Regulator, before the date prescribed for that purpose, an annual return containing the information required by the Regulator as a condition of the licence or by written notice; and (b) in each year (other than a year in which the licence is due to expire) pay to the Regulator a fee in relation to the licence or the first instalment of that fee, by the date notified by the Regulator. Penalty: Fine not exceeding 10 penalty units. (3) The licence fee in relation to a licence is the fee, determined by the Regulator, that represents the reasonable cost of administering this Act in relation to the licence. (4) The Regulator may determine that the licence fee in relation to any licence is to be paid in equal instalments at intervals fixed by the Regulator. (5) If a licensee fails to pay a licence fee in accordance with subsection (2)(b) – (a) the amount in arrears, unless the Regulator determines otherwise, is to be increased by penalty interest at the prescribed rate; and (b) the Regulator may impose on the licensee a fine of an amount fixed by the Regulator up to a limit of 10 penalty units or 10% of the outstanding fee, whichever is the greater. (6) The Regulator may for any proper reason remit, in whole or in part, penalty interest or a fine imposed under subsection (5) . (7) A fee and any penalty interest or fine imposed by the Regulator under this section may be recovered from the licensee by the Regulator as a debt due and payable to the Crown in any court of competent jurisdiction. Division 3 - Rights and obligations under licences 27. Authority conferred by licence (1) A licence authorises the licensee, and persons acting on behalf of the licensee, to carry out, in accordance with the terms and conditions of the licence, the gas activities that are specified on the licence as being authorised to be carried out under the licence. (2) The gas activities authorised by a licence to be carried out under the licence need not be all of the same character or at the same location but may consist of a combination of different gas activities or gas activities at different locations. (3) Despite subsection (2) , a licence may not authorise the carrying out of both the gas activity consisting of the selling of gas by retail and the gas activity consisting of gas infrastructure activities. (4) A licence may be granted for the whole or a part of gas infrastructure. Division 4 - Terms and conditions of licences 28. Information to be included on licence A licence is to include the following information: (a) the name of the licensee; (b) the gas activity, or gas activities, the carrying out of which is authorised by the licence, including, if the gas activities are to be authorised to be carried out only in part of the State, the area of the State in which the gas activities may be carried out; (c) the terms of the licence; (d) the period for which the licence, subject to this Act, remains in force; (e) any conditions to which the licence is subject. 29. Period for which licence remains in force Subject to this Act, a licence remains in force for a period, of not more than 25 years, specified in the licence. 30. Conditions on licence (1) The Regulator may, on the grant, renewal or transfer of a licence, or for the purposes of section 35(5) or section 38(8) , specify on the licence a condition of the licence. (2) A condition may be specified on a licence when it is renewed or transferred, or for the purposes of section 35(5) or section 38(8) , even though it was not previously specified on the licence. (3) Without limiting the generality of subsection (1) , the Regulator may specify on a licence any one of more of the following conditions: (a) a condition requiring that the licensee comply with any standards or codes specified in the licence, or any safety plan approved under the Gas Safety Act 2019 , or both; (b) conditions relating to the financial or other capacity of a licensee to continue gas activities under the licence for the term of the licence; (c) a condition requiring the licensee to maintain insurance, on terms and conditions approved by the Regulator, insuring the licensee against liabilities arising from activities under the licence; (d) a condition requiring that the licensee may not appoint gas officers or may only appoint gas officers for the purposes specified in the condition; (e) a condition requiring the licensee to follow a specific process in resolving disputes between the licensee and customers as to the supply of gas; (f) a condition to limit a licensee's activity to activity within a distribution system or a transmission pipeline. (4) Without limiting the generality of subsection (1) , if the same person, or related persons, hold both a gas retail licence and a gas infrastructure licence, the Regulator may place on one or more of the licences the conditions that the Regulator considers to be necessary to ensure that the carrying out of operations and business under each of the licences is adequately separate from the carrying out of operations and business under each of the other licences. 31. Variation of terms and conditions of licences (1) A licensee may apply to the Regulator to vary a condition of the licence or to vary or revoke a term of the licence. (2) The Regulator may, for the purposes of section 35(5) or section 38(8) , by written notice to the licensee, revoke a condition of a licence. (3) The Regulator may, by written notice to the licensee, add a condition to the conditions of the licence or vary a condition of the licence – (a) if the Regulator has given the licensee reasonable notice of the proposed addition or variation and allowed the licensee a reasonable opportunity to make representations in relation to the proposed addition or variation; or (b) on the agreement under section 34 of the Regulator to a transfer of the licence; or (c) for the purposes of section 35(5) or section 38(8) ; or (d) on application by the licensee under subsection (1) ; or (e) with the agreement of the licensee. (4) The Regulator may, by written notice to the licensee, revoke a condition of the licence. (5) The Regulator may, by written notice to the licensee, vary or revoke a term of the licence – (a) if the Regulator has given the licensee reasonable notice of the proposed variation or revocation and allowed the licensee a reasonable opportunity to make representations in relation to the proposed variation or revocation; or (b) on the agreement under section 34 of the Regulator to a transfer of the licence; or (c) for the purposes of section 35(5) or section 38(8) ; or (d) on application by the licensee under subsection (1) ; or (e) with the agreement of the licensee. 32. Contravention of licence conditions (1) The licensee must comply with the conditions of the licence. Penalty: Fine not exceeding 1 200 penalty units and, in the case of a continuing offence, a further fine not exceeding 100 penalty units for each day during which the offence continues. (2) A court that finds the licensee guilty of an offence against subsection (1) may, in addition to, or instead of, imposing a penalty under that subsection, make one or more of the following orders: (a) an order requiring the licensee to comply with any conditions of the licence; (b) an order directing the licensee to do, or refrain from doing, anything; (c) any other order that the court considers desirable to protect the interests of customers. 33. Directions to comply with licence conditions (1) The Regulator, if satisfied on reasonable grounds that the licensee has been or is failing to comply with the conditions of the licence, may give the licensee a direction requiring the licensee to take the action that the Regulator considers necessary to secure compliance with those conditions. (2) A direction must be given by written notice or, if the Regulator is of the opinion that immediate action is required, it may be given orally. (3) If a direction is given orally, it must be confirmed in writing as soon as practicable after being given. (4) A direction must state the action required to be taken by the licensee and the time within which the action is required to be taken. (5) A licensee that is given a direction under this section must comply with the direction. Penalty: Fine not exceeding 1 200 penalty units and, in the case of a continuing offence, a further fine not exceeding 100 penalty units for each day during which the offence continues. (6) If a licensee fails to comply with a direction given to it under this section – (a) the Regulator, or a person authorised in writing by the Regulator, may take any action that is reasonable and necessary to give effect to the direction; and (b) the costs incurred in giving effect to the direction under paragraph (a) are recoverable from the licensee in any court of competent jurisdiction as a debt due to the Crown from the licensee; and (c) for the purposes of giving effect to the direction, neither the Regulator nor a person authorised by the Regulator under paragraph (a) is required to hold a licence. Division 5 - Transfer 34. Transfer of licences (1) A licence may be transferred with the agreement of the Regulator. (2) The Regulator may – (a) impose conditions that are to be fulfilled before the licence may be transferred; and (b) vary under and in accordance with section 31 the conditions or terms that are to be conditions or terms of the licence immediately after it is transferred. (3) It is a condition of the transfer of a licence that the person to whom the licence is transferred must – (a) provide the Director of Gas Safety with a written commitment to comply with the existing safety case, for the relevant gas infrastructure, prepared under the Gas Safety Act 2019 ; or (b) submit a new safety case, for the relevant gas infrastructure, under the Gas Safety Act 2019 . 35. Transfer of certain authorities to carry out activities under licences (1) A licensee may apply to the Regulator for approval to transfer to another person the authority to carry out an activity specified on the licensee's licence. (2) The Regulator may, on application from a licensee under subsection (1) , approve – (a) the transfer – (i) to another person who holds a gas retail licence, of the authority to carry out the gas retail activities, specified on the applicant's licence, that are specified in the application; or (ii) to another person who holds a gas infrastructure licence, of the authority to carry out the gas infrastructure activities, specified on the applicant's licence, that are specified in the application; or (iii) to another person who holds a retail licence or gas infrastructure licence, of the authority to carry out the activities, referred to in section 6(1)(c) specified on the applicant's licence, that are specified in the application; or (b) the transfer, to another person who does not hold a licence, of the authority to carry out the gas activities specified in the application. (3) The Regulator may impose conditions on the transfer of the authority to carry out an activity. (4) It is a condition of the transfer of the authority to carry out an activity in relation to a licence that the person to whom the authority is transferred must – (a) provide the Director of Gas Safety with a written commitment to comply with the existing safety case, for the relevant gas infrastructure, prepared under the Gas Safety Act 2019 ; or (b) submit a new safety case, for the relevant gas infrastructure, under the Gas Safety Act 2019 . (5) If the Regulator approves the transfer to a licence holder of the authority to carry out a gas activity, the Regulator, under section 31 , is to – (a) vary, revoke or add to the terms and conditions of the licence held by the licence holder from whom the authority is to be transferred, so that the carrying out of the activity ceases to be authorised under the licence; and (b) vary, revoke or add to the terms and conditions of the licence held by the licence holder to whom the authority is to be transferred so that the carrying out of the activity becomes authorised under the licence; and (c) vary, revoke or add to the terms and conditions of another licence held by the licence holder to whom the authority is to be transferred, as may be necessary to ensure that the carrying out of operations and business under each of the licences is adequately separate from the carrying out of operations and business under each of the other licences held by the licence holder. (6) If the Regulator approves the transfer from the holder of a licence, to a person who is not a licence holder, of the authority under the licence to carry out a gas activity – (a) the Regulator is to vary or revoke under section 31 terms and conditions of the licence of the person from whom authority to carry out the activity is to be transferred, so that the carrying out of the activity ceases to be authorised under the licence; and (b) a licence may be granted under section 22 , to the person to whom the authority to carry out the activity is transferred, on such terms and conditions, of the licence from which the authority is to be transferred, as will – (i) enable the carrying out of the activity under the licence that is so granted; and (ii) ensure that the carrying out of operations and business under each of the licences is adequately separate from the carrying out of operations and business under each of the other licences. Division 6 - Surrender of licences or cessation of operations 36. Surrender of licence authorising selling of gas by retail (1) A gas retailer may, by written notice to the Regulator, surrender his or her licence. (2) The surrender of a licence under subsection (1) takes effect from – (a) a date specified in the notice under subsection (1) that is a date at least 6 months after the notice is given; or (b) if it is a condition of the licence that a period of notice of longer than 6 months must be given before the licence may be surrendered – a date specified in the notice under subsection (1) that is a date that is after that longer period expires; or (c) if the Regulator agrees – a date that is before the expiry of a period referred to in either paragraph (a) or (b) . 37. Surrender of licence authorising gas infrastructure activities (1) A gas infrastructure licensee may, in writing, apply to the Regulator to surrender the licence. (2) An application under subsection (1) in relation to a surrender is to be made to the Regulator – (a) at least 6 months before the surrender is to take effect; or (b) not before the beginning of a longer period, before the surrender is to take place, that is specified in a condition of the licence as the period of notice required to be given of such a surrender. (3) The Regulator may, by agreement with the licensee, shorten the period of notice referred to in subsection (2) . (4) The Regulator may, in a notice of acceptance of the surrender given to the applicant, agree to a surrender to which an application under subsection (1) relates. (5) The Regulator may agree to a surrender to which an application under subsection (1) relates on any condition that the Regulator thinks fit, including, but not limited to including, a condition – (a) that the applicant pay any monetary obligations incurred before the surrender; or (b) that the applicant provide the Regulator with information that should have been, but has not been, provided before the surrender. (6) A surrender in relation to which a notice of acceptance of surrender has been given under subsection (4) takes effect from the date specified by the Regulator in the notice as the date on which the surrender is to take effect. (7) Notice of the surrender of a licence (including the written notice given under subsection (1) ), or of part of the area specified in the licence, is to be published in the Gazette or in another manner that the Regulator considers appropriate. 38. Alteration to permit cessation of certain activities under licence (1) A gas infrastructure licensee may, by notice in writing, apply to the Regulator for authority – (a) to cease to carry out a gas infrastructure activity, specified in the application, that is authorised by the licence to be carried out; or (b) to cease to carry out in an area of land a gas infrastructure activity authorised by the licence to be carried out. (2) An application under subsection (1) in relation to a gas infrastructure activity is to be made to the Regulator – (a) at least 6 months before a cessation notice in relation to the application is to take effect; or (b) not before the beginning of a longer period, before the licensee is to cease to carry out the activity, or to cease to carry out the activity in relation to the area of land, that is specified in a condition of the licence as the period of notice required in relation to a cessation notice. (3) The Regulator may, by agreement with the licensee, shorten the period of notice referred to in subsection (2) . (4) The Regulator may, after receiving from a licensee an application under subsection (1) , by notice to the licensee (a cessation notice), authorise the licensee – (a) to cease to carry out a gas infrastructure activity, specified in the application, that is authorised by the licence; or (b) to cease to carry out on an area of land a gas infrastructure activity authorised by the licence. (5) The Regulator may issue a cessation notice to which an application under subsection (1) relates on any condition tht the Regulator thinks fit, including, but not limited to including, a condition – (a) that the applicant pay any monetary obligations incurred before the cessation notice was issued; or (b) that the applicant provide the Regulator with information that should have been, but has not been, provided before the cessation notice was issued. (6) A cessation notice given under subsection (4) takes effect from the date specified by the Regulator in the notice as the date on which the notice is to take effect. (7) Notice of a cessation notice (including the written notice given under subsection (1) ), is to be published in the Gazette or in another manner that the Regulator considers appropriate. (8) If the Regulator issues a cessation notice under subsection (4) in relation to an activity, the Regulator, under section 31 , is to do one or more of the following: (a) vary, revoke or add to those terms and conditions of the licence of the person as required to ensure that the carrying out of the activity ceases to be authorised under the licence; (b) vary, revoke or add to the terms and conditions of another licence held by the licence holder, as may be necessary to ensure that the carrying out of operations and business under each of the licences is adequately separate from the carrying out of operations and business under each of the other licences. (9) If a cessation notice authorises a licensee to cease to carry out on an area of land a gas infrastructure activity authorised by the licence, the licence continues in respect of the remainder of the licence area subject to any variation or revocation of its terms or conditions that is made by the Regulator under section 31 . Division 7 - Suspension and cancellation of licences or activities 39. Suspension and cancellation of licences (1) The Regulator must, by notice to the licensee, suspend or cancel the licence with effect from a specified date – (a) if satisfied that the licensee has failed to comply with this Act or the regulations or a requirement imposed by or under this Act, or any other Act, in connection with the activities authorised by the licence to be carried out, and in the Regulator's opinion the failure is so serious that the licence ought to be suspended or cancelled, as the case may be; or (b) on the recommendation of the Director of Gas Safety under subsection (5) . (2) The Regulator may, by notice to the licensee, suspend or cancel the licence with effect from a specified date, if satisfied that – (a) the licensee obtained the licence improperly; or (b) the licensee has failed to comply with a reasonable requirement of the Regulator to provide to the Regulator information relating to the activities authorised by the licence to be carried out; or (c) the licensee has failed to commence gas activities authorised by the licence to be carried out; or (d) the licensee has ceased to carry out gas activities authorised by the licence to be carried out; or (e) there has been any act or default such that the licensee would no longer be entitled to the grant of such a licence. (3) A suspension under this section may be for a specified period, or until the fulfilment of specified conditions, or until further order of the Regulator. (4) Before the Regulator acts under this section, the Regulator must – (a) notify the licensee in writing of the proposed action and the reasons for the proposed action; and (b) allow the licensee a reasonable period within which to make submissions to the Regulator in respect of the proposed action. (5) The Director of Gas Safety may, by notice in writing to the Regulator, recommend to the Regulator that the Regulator take the action set out in the notice, which action may include the preparation of a report. (6) The Director of Gas Safety may only make a recommendation under subsection (5) in relation to a licence if he or she is of the opinion that it is necessary or desirable to make the recommendation to ensure the safety of persons or property. (7) The Regulator may, with the agreement of a licensee, and after consultation with the Director of Gas Safety, suspend the licence, by notice in writing to the licensee. (8) A suspension under subsection (7) may be for a period, or until the fulfilment of conditions, or until further order of the Regulator, as specified in the notice suspending the order. (9) Notice of the suspension or cancellation of a licence is to be published in the Gazette or in another manner that the Regulator considers appropriate. 40. Suspension and revocation of authority to conduct certain activities under licence (1) The Regulator must suspend or revoke a term or condition, or the terms and conditions, of the licence, that authorise the carrying out of a gas activity – (a) if – (i) the Regulator is satisfied that the licensee has failed to comply with this Act or the regulations or a requirement imposed by or under this Act, or any other Act, in connection with the activity; and (ii) in the Regulator's opinion, the failure is so serious that the licence ought to cease to authorise the carrying out of the activity; and (iii) in the Regulator's opinion, the failure is not so serious that the licence ought to be suspended or cancelled; or (b) on the recommendation of the Director of Gas Safety under subsection (5) . (2) The Regulator may, by notice to the licensee, suspend or revoke a term or condition, or the terms and conditions, of the licence, that authorise the carrying out of a gas activity with effect from a specified date, if satisfied that – (a) the licensee has failed to comply with a reasonable requirement of the Regulator to provide to the Regulator information relating to the gas activity; or (b) the licensee has failed to commence the gas activity; or (c) the licensee has ceased to carry out the gas activity. (3) A suspension under this section may be for a specified period, or until the fulfilment of specified conditions, or until further order of the Regulator. (4) Before the Regulator acts under this section, the Regulator must – (a) notify the licensee in writing of the proposed action and the reasons for the proposed action; and (b) allow the licensee a reasonable period within which to make submissions to the Regulator in respect of the proposed action. (5) The Director of Gas Safety may, by notice in writing to the Regulator, recommend to the Regulator that the Regulator take the action set out in the notice. (6) The Director of Gas Safety may only make a recommendation under subsection (5) in relation to a term or condition, or the terms and conditions, of a licence, that authorise the carrying out of a gas activity, if he or she is of the opinion that it is necessary or desirable to make the recommendation to ensure the safety of persons or property. (7) The Regulator may, with the agreement of a licensee, and after consultation with the Director of Gas Safety, suspend a term or condition, or the terms and conditions, of a licence, that authorise the carrying out of a gas activity, by notice in writing to the licensee. (8) A suspension under subsection (5) may be for a period, or until the fulfilment of conditions, or until further order of the Regulator, as specified in the notice suspending the order. (9) Notice of the suspension or revocation of a term or condition, or the terms and conditions, is to be published in the Gazette or in another manner that the Regulator considers appropriate. Division 8 - Miscellaneous 41. Regulator may use licence information The Regulator – (a) may use for the purposes of this Act any information or record provided by a licensee under this Act; and (b) may disclose, as authorised by the regulations, information and records provided by the licensee under this Act. 42. Register of licences (1) The Regulator is to keep a register of licences granted under this Act. (2) A register kept under this section may be in the form, which may be an electronic form, determined by the Regulator. (3) A register kept under this section – (a) is to include the terms and conditions of each licence; and (b) is to include other information required under the regulations. (4) A person may, on payment of a fee fixed by the Regulator, inspect t