The Proposed Gas Safety Regulations
Interpretation
28. The proposal is to provide, in the gas safety regulations, all the existing definitions with the following amendments and additions. The key new definition proposed is "point of supply".
The Board [amendment]
29. The Gas Regulations, as they stand, do not make it clear which Board is being cited in several of the regulations. To provide clarity it is proposed that a new definition be added to clarify the enforcement/regulatory body being referred to in the regulations.
30. The proposed definition will read along the lines that the Board is the Plumbers, Gasfitters and Drainlayers Board established under the Plumbers, Gasfitters and Drainlayers Act 2006.
Conformity Assessment Body [new definition]
31. It is proposed that Conformity Assessment Bodies will be used to perform the audit functions for safety management systems and for the certification of gas appliances.
32. A new definition for Conformity Assessment Body (CAB) will be required. This definition is proposed to read along the lines that a CAB is a body (person, company or other entity) that is:
- accredited by IANZ or JAS-ANZ; or
- accredited by an accreditation authority that has entered into a mutual recognition arrangement with IANZ or JAS-ANZ; or
- approved pursuant to any agreement between New Zealand and any other country or countries; or
- any other equivalent organisation that satisfies the Chief Executive that they can meet the requirements under the regulations.
This new definition has application with respect to the new regulations concerning Safety Management Systems. It is also relevant to the regulations concerning safety of gas appliances and specified fittings.
Point of Supply [new definition]
33. The Gas Amendment Act 2006 provides for the regulations to define the point at which gas is deemed to be supplied to a particular place. This definition effectively sets the point at which gas distribution ends and supply to the consumer begins. The definition of "point of supply" is an important concept when considering some of the other regulatory amendments proposed, as it defines the downstream boundary for gas distribution and therefore the end of the requirement for safety management systems coverage.
34. The point of supply also defines the point after which (downstream) gasfitters are required to carry out gasfitting work. Point of supply is currently defined through the repealed Plumbers, Gasfitters and Drainlayers Act 1976 which defines that gasfitters responsibilities take effect from the "outlet of the gas measurement system" and/or "the custody transfer point". The Plumbers, Gasfitters and Drainlayers Act 2006 provides an interim definition for "point of supply" which will remain in force until a definition is included under the Gas Act by the new regulations.
35. While the references in the Plumbers, Gasfitters and Drainlayers Act 1976 have worked well for the majority of consumers, there is some disagreement about where the "custody transfer point" lies in certain circumstances and therefore responsibility can come into question. Consumers, gasfitters and gas distributors need a clear definition of who is responsible for the maintenance and safety of gas equipment and who may carry out work within their respective areas. The proposed definition is intended to provide this clarity and ensure that the regulatory requirements can be identified and met by all parties.
36. It is proposed that there be a new definition for point of supply that reads along the following lines –
point of supply is a single point at which there is exclusive supply of gas to a consumer and which is either:
- the outlet of the valve that allows isolation of the supply, provided it is after the most downstream of the pressure control equipment or the gas measurement system; or
- the outlet of the pressure control equipment or gas measurement system (whichever is the most downstream), if that equipment is located between the valve that allows isolation of the supply and the consumer; or
- the property boundary, if the valve that allows isolation of the supply, the pressure control equipment and gas measurement system are located outside the consumer's property boundary; or
- the point at which fittings provide the exclusive supply of gas to the consumer in an area leased or licensed by the consumer; or
- the outlet of the primary gas measurement system where exclusive supply of gas is provided to the consumer in an area leased, licensed or owned by the consumer.
37. The definition proposed for the point of supply has taken several factors into consideration. These factors are discussed in the following sections.
The Gas Supply Setting
38. The proposed definition of point of supply takes into consideration that there are a number of different supply scenarios. In the typical domestic supply scenario, a consumer will have on their property (in a progressively downstream order) an isolation valve, pressure control equipment and a gas measurement system, refer figure 1. For this situation the point of supply will be the outlet of the gas measurement system supplying that particular consumer.
39. Most supply scenarios can follow this relatively simple setup although they may involve more significant infrastructure. Supply scenarios can, however, get much more complicated. For example, gas supply to a shopping mall may involve more than one point of supply – the first being the pressure control equipment, isolation valve or gas measurement system where gas enters the property and the subsequent points of supply being for the individual tenancies (refer section below).
Figure 1: Point of supply in a typical residential gas supply scenario.
→ Full size version of Figure 1 [70 kB JPG]
Point of Supply and the Property Boundary
40. The isolation and pressure control equipment is generally on the consumer's property or at the boundary to the consumer's property; however, this is not always the case. It is not considered appropriate to have the point of supply outside the property boundary. If it were, it could have the effect of making the consumer responsible for fittings in the road. However, this responsibility should sit with the gas distributor, who will generally have special authority to work in the road reserve.
41. The same rationale applies to service lines that pass through another person's property. It is generally not appropriate or normal practice for consumers to have responsibility for gas service lines (or other utility lines) that pass through another person's property.
Exclusive Fittings
42. Following on from the above point, in some cases isolation valves, pressure control equipment and/or gas measurement systems on a particular property may be used to supply consumers on other property. Such equipment should be the responsibility of the equipment's owner, i.e. the gas distributor or gas measurement system, as appropriate, rather than the consumer.
Opting Out by Specific Agreement
43. Section 2(3) of the Electricity Act defines the point at which electricity is supplied to a consumer and has been used as a reference point for the proposed definition of point of supply to a gas consumer. The Electricity Act definition provides that there may be a specific agreement between a consumer, a property owner other than the consumer (e.g. a landlord) or a body corporate for a different point of supply to that regulated. It is proposed that such a clause be included in the definition for "point of supply" for gas.
Tenants and Lessees
44. A similar situation may apply with respect to gas supplied to a person who owns or leases part of a property or a building or dwelling on a larger property. That point within the larger property where the tenant or lessee obtains exclusive supply of gas is proposed as the point of supply.
Gas Retailers and the Point of Supply
45. The actual point of supply in the tenant/lessees scenario will depend on the arrangement between the consumer and the gas retailer. In the case of a shopping mall, the mall owner may contract with a retailer for gas supply and then on-sell the gas to mall tenants. (This would effectively make the mall owner a gas retailer). Alternatively, each tenant may have their own supply arrangement with a retailer of their choosing.
46. The contractual arrangement between the consumer and retailer for the supply of gas will ultimately define where the retailer's responsibilities lie.
Gas Distributors and the Point of Supply
47. For gas distributors, the point of supply, in terms of gas supply systems needs to be at the point at which gas is supplied to a property and the distributor's ownership or responsibility of assets ceases. There are some exceptions and finer points around this that are discussed under the proposed regulations for safety management systems section.
48. In the majority of supply scenarios the isolation valve and pressure control equipment are typically owned by a gas distributor with the gas measurement system belonging to either the gas distributor or a different company or, rarely, the consumer.
Questions
- Has the "point of supply" been adequately addressed?
- Can you identify any situations (e.g. shopping malls, gated communities, tenancies) that these proposals would not adequately cover?
Significant Property Damage [new definition]
49. The definition of "serious harm" is set out in the Gas Act and relates to harm caused to members of the public. The definition, however, for "significant property damage" is not established in the Act. Significant property damage is an important concept in the assessment of risks posed by gas within the supply system. For this reason it is proposed that a definition for significant property damage be included in the regulations. This definition is consistent with the definition for significant property damage in the Standard for Safety Management Systems (NZS 7901).
50. It is proposed that the definition will read along the following lines:
significant property damage is damage that is greater than superficial, being such that the property is either damaged beyond repair or requires substantial repair or reconstruction in order to restore it to, at a minimum, the condition prior to it being damaged.
Codes of practice references [amendment]
51. It is proposed that the reference to "GCP 3" that relates to the New Zealand Code of Practice for Odorisation of Gas will be removed and replaced by reference to "NZS 5263" (NZS5263:2003 Gas detection and odorisation).
Standards References [Amendment]
52. Reference to "NZS 5259" needs to be updated from NZS 5259:1997 to the updated version of the Standard, NZS 5259:2003.
53. Reference to "Part 1 of NZS 5425" needs to be updated to NZS 5425.1:1994 Code of practice for CNG compressor and refuelling stations - On site storage and location of equipment. This reference update is intended to increase clarity in the Standard referenced.
54. Reference to "Part 2 of NZS 5425" needs to be updated to NZS 5425.2:1996 Code of practice for CNG compressor and refuelling stations – Compressor equipment. This reference update is intended to increase clarity in the Standard referenced.
55. Reference to "Part 3 of NZS 5425" needs to be updated to NZS 5425.3: Code of practice for CNG compressor and refuelling stations – Metering devices.
- NZS 5425:3.3:1984 Code of practice for CNG compressor and refuelling stations - Metering devices – Division 3.3 Requirements for type approval of on-line metering devices.
56. Reference to "Part 4 of NZS 5425" needs to be updated to NZS 5425.4:1994 Code of practice for CNG compressor and refuelling stations – CNG trickle fill stations on commercial and industrial premises.
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