Gas Act, 2001 (Act No. 48 of 2001)

Regulations

Piped Gas Regulations

4. Price regulation principles and procedures

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(1)While the agreement is in force, pricing matters that are not specifically provided for in the agreement are governed in accordance with this regulation.

 

(2)Gas traders whose maximum gas prices are calculated by Market Value Pricing in terms of the agreement must inform their customers of the elements used to calculate their maximum gas price and of—
(a)the alternative fuel available;
(b)the operating costs for the alternative fuel and for gas; and
(c)the Net Present Value for operating cost of the alternative fuel and the operating cost of gas.

 

(3)The Gas Regulator must, when approving the maximum prices in accordance with section 21(1)(p) of the Act—
(a)be objective i.e. based on a systematic methodology applicable on a consistent and comparable basis;
(b)be fair;
(c)be non-discriminatory;
(d)be transparent;
(e)be predictable; and
(f)include efficiency incentives.

 

(4)Maximum prices referred to in subregulation (3) must enable the licensee to—
(a)recover all efficient and prudently incurred investment and operational costs; and
(b)make a profit commensurate with its risk.

 

(5)The Gas Regulator must approve maximum prices for gas for each distribution area or group of distribution areas as indicated in Annexure A for the following classes of customers:
(a)Residential; and
(b)commercial and industrial.

 

(6)When gas is sold, the accompanying sales invoice must itemise the constituent elements of the total price reflected on the invoice, including at least the cost of gas, any transport tariffs and any other charges.

 

(7)Licensees must provide the Gas Regulator with sufficient information as required by the Gas Regulator for it to determine maximum prices.

 

(8)Licensees may be required to file contracts signed with customers with the Gas Regulator.

 

(9)The Gas Regulator may not make public the contents of contracts referred to in subregulation (8) if such information is protected in terms of the Promotion of Access to Information Act.

 

(10)The Gas Regulator must, as far as possible, promote fair pricing through price transparency rather than direct intervention in order to enable consumers to make informed market decisions.

 

(11)In order to promote price transparency and the prevention of discrimination—
(a)trading licensees must provide the Gas Regulator within three months of the end of each calendar year, the annual volume and average price for that year for each of its customers consuming less than 10 million giga joules per annum;
(b)the Gas Regulator must publish aggregated results for categories of customers defined in subregulation (5) on a provincial basis;
(c)the Gas Regulator may not release information pertaining to individual customers if such information is protected in terms of the Promotion of Access to Information Act; and
(d)there must be at least three customers in a given category for a price to be published.

 

(12)The invoices issued by licensees to customers and consumers must indicate—
(a)the acquisition or production cost of the gas; and
(b)details of all tariff charges applied, including metering and other charges.

 

(13)When the ownership of gas changes, the price of gas in the new owner's hands refers to the price of gas from the seller plus any tariffs charged by that seller.