A review of standard Operational Transportation Services Agreements by the Australian Energy Regulator (AER) is underway.

Standard Operational Transportation Service Agreements are intended to make gas transportation services more generic and tradeable.

This makes it easier for shippers to buy and sell unused transportation capacity through the Day Ahead Auction and Capacity Trading Platform, which commenced earlier this year as part of the gas reform agenda.

Under the National Gas Law, the agreements must be available for all facilities covered by the gas transportation capacity trading reforms.

The review will examine the commercial terms of the agreements to ensure they meet the legislative requirements. This includes considering the charges imposed by facility operators under the agreements.

The AER is seeking submissions from market participants and interested parties on their views and experiences concerning Operational Transportation Service Agreements by Friday 26 July 2019.

The AER will report publically on the review early in 2020.

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