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Rule
ARRANGEMENTS OF RULES
Supply of natural gas
1 Scope
2. Application for service
connection
3. Connection of supply
4. Financing of service
lines
5 . Precaution in execution of
works
6. .Metering
7. Illegal connections
Natural gas billing
8. Issue and delivery of
bills
9. Contents of a bill
10. Estimated bill
Bill payment
11. Payment procedure
12. Dishonoured payment
13. Payment by installment
Review of natural gas bill
14. Disputed bill
15. Undercharge of natural gas
consumption
16. Overcharge of natural gas
consumption
17. Vacation or disposal of
premises
18. Advance deposit
19. Refundable advance
20. Interest on deposits and
accounts due
21. Disconnection of supply of
natural gas
Miscellaneous provisions
22. Complaints and dispute
resolution
23. Management of assets
24. Contraventions and
penalties
25. Interpretation
NATURAL GAS DISTRIBUTION AND
SALE (TECHNICAL AND OPERATIONAL)
RULES, 2007.
IN exercise of the powers
conferred on the Energy
Commission by section 28 of the
Energy Commission Act 1997, Act
541 these Rules are made this
5th day of December, 2007.
Supply of natural gas
Scope
1.
These Rules apply to a person
licensed as a public utility
under the Act to engage in the
distribution and sale of natural
gas in an area or zone
designated by the Commission.
Application for service
connection
2.
(1) A person shall not be
connected to a natural gas
service line unless that person
has applied to a distribution
company for a service
connection.
(2) A person who applies for a
service connection shall
(a) ensure that the natural gas
installation at the premises is
carried out by a certified
technician, and
(b) obtain from the certified
technician, a duly signed and
dated Installation Completion
Certificate approved by the
distribution company.
(3) The applicant shall attach
the Installation Completion
Certificate to the application
form for the connection and
submit the application to the
distribution company.
(4) The distribution company
shall provide a standard
application form approved by the
Commission for a connection and
the form shall
(a) be simple; and
(b) have terms and conditions
which are clearly stated in
plain English.
(5) The terms and conditions
shall include provisions that
the applicant
(a) does not have an outstanding
debt from a previous natural gas
bill at a different supply
address other than a debt
subject to a dispute; (b)
informs the distribution company
in writing of the estimated
quantity of natural gas
consumption at the applicant's
premises;
(c)· agrees to pay
(i) the requisite connection
fee, and
(ii). the cost of financing
service lines where necessary
subject to rule 4,
(d) permits reasonable access at
reasonable times, and gives
adequate protection for the
distribution company's agent
during meter reading, fault
rectification, disconnection and
reconnection exercises and other
lawful activities connected with
the supply at the applicant's
premises;
(e) gives an accurate contact
address for the delivery of
natural gas bills,
(f) provides an approved site
plan, building permit and an
internal pipeline layout; .
(g) will not connect supply
unless it is passed through a
meter,
(h) will not tamper with the
meter or an ancillary equipment
associated with the supply;
(i) specifies an approved permit
to connect for service;
(;j) will not use or permit to
be used the natural gas supplied
to the applicant's premises for
a purpose other than that for
which it was contracted;
(k) will not connect or permit
to be connected from the
applicant's premises to other
premises, natural gas supplied
to that applicant's premises,
without the prior consent of the
distribution company;
(I) will disclose to the
distribution company dangerous
environmental conditions on the
applicant's premises and will
rectify them; and
(m) agrees to enter into other
service contracts with the
distribution company at the
request of the distribution
company.
Connection of supply
3.
(1) A distribution company
licensed under the Act to
distribute and engage in the
retail sale of natural gas to
customers shall provide, install
and maintain the necessary
equipment required for the
supply and sale of natural gas
to customers.
(2) The distribution company
shall inspect an installation
before service is introduced to
ensure that the applicant's
piping and equipment accord with
approved technical and safety
standards.
(3) The supply shall be
connected through an appropriate
service line connection and
protective device that accords
with the applicable standards
prescribed by the Commission.
(4) For purposes of an
applicant's installation prior
to a service connection, a
distribution company shall not
require the applicant to
purchase equipment from a
particular person as a condition
for the supply connection or
require the customer to use the
services of a particular person.
(5) Where an applicant for a new
service connection fails to
comply with subrule (2), the
distribution company may refuse
to connect the applicant to the
distribution system.
(6) A distribution company shall
ensure that its distribution
service lines are free from
encroachments at all times.
Financing of service lines
4.
(1) A distribution company is
financially responsible for the
development and maintenance of
its distribution system.
(2) Where a customer finances
part of the development of a
distribution system with the
approval of the distribution
company, that customer is
entitled to a full refund of the
investment from the distribution
company.
(3) Despite subrule (2) the
claim for a refund is subject to
(a) a connection of other
customers to the newly developed
part of the distribution system,
and
(b) the distribution company's
procedures for refund approved
by the Public Utilities
Regulatory Commission.
(4) A distribution company shall
establish and submit in writing
to the Public Utilities
Regulatory Commission for
approval the procedures for
making the refund.
(5) The Public Utilities
Regulatory Commission may direct
the distribution company to
review its procedures for making
the refund and may approve an
acceptable proposed modification
to the procedures.
Precaution in execution of works
5.
(1) Work in respect of the
supply of natural gas shall meet
the siting ting requirements of
the Commission.
(2) Without limiting subrule
(1), work in respect of the
supply of natural gas
which affects .
(a) a street, railway, river,
irrigation system, drainage,
sewer system or water supply,
(b) telegraphs, telephones or
harbour works, or
(c) any public or private work,
shall be carried out in the
manner prescribed by these Rules
and without danger to public or
private safety despite any other
requirement.
Metering
6.
An applicant shall provide a
location on that applicant's
premises suitable to the
distribution company for the
installation of, and easy access
to the distribution company's
meter.
Illegal connections
7.
(1) Natural gas supply to any
premises made contrary to rule 2
is illegal.
(2)An illegal connection under
subrule (1) shall be
disconnected in accordance with
the Public Utilities
(Termination of Service )
Regulations 1999 (L.I 1651).
(3) Where it is established that
an illegal connection has
resulted in
(a) damage to
(i) the distribution company's
property, or
(ii) a third party's property,
or
(b) loss of
(i) revenue to the distribution
company, or
(ii) life, or
(c) injury to life
the person who made the illegal
connection, the person who
authorised the connection and
the beneficiary of the illegal
connection are liable to pay
damages to the affected person.
Natural gas billing
Issue and delivery of bills
8.
(1) A distribution company shall
read the meter recordings in a
consistent cycle, by adopting
(a) a daily meter reading,
(b) monthly meter reading day
taken on a specific day of the
month,
(c) quarterly meter reading day
taken on a specific day of the
month, or
(d) bi-annual meter reading day
taken at the mid-year and the
end of the year.
(2) Despite subrule (1), a
distribution company may vary
the meter reading day by a
maximum of three days.
(3) A distribution company shall
deliver a bill once in a month
or as agreed between the
customer and the distribution
company at the address of the
customer by hand, electronic
mail or any other appropriate
and convenient means except in
the case of those on prepayment
meters.
(4) The bill shall indicate the
natural gas usage in the month
or within a period as agreed
between the distribution company
and the customer.
(5) A distribution company which
contravenes subrule (1) and (3)
commits an offence is liable on
summary conviction to a fine of
not more than five hundred
penalty units.
(6) A distribution company shall
issue a bill in respect of a
metered customer after the
distribution company has read
and taken a record of the
customer's meter measurements.
(7) A customer is entitled to
settle an accumulated bill by an
installment payment plan agreed
between the distribution company
and the customer, if the
distribution company fails to
deliver a bill to the customer
for a period of three months
after the bill has become due.
(8) Where a distribution company
fails to bill a customer for a
period of twelve months, the
distribution company cannot
recover the cost of that service
unless the delay in the billing
occurred
(a) without the negligence on
the part of the distribution
company; or (b) due to the
customer's actions.
(9) Where a distribution
company's right to claim the
cost of service to a customer is
not vitiated by failure on the
part of the distribution company
to bill the customer for a
period of twelve months, the
distribution company shall
recover the accrued cost of
service by
(a) giving the customer the
option to pay the shortfall by
an installment payment plan; and
(b) not charging interest on the
amount.
(10) Where the distribution
company and the customer are
unable to agree on a payment
plan, the matter shall be
referred to the Public Utilities
Regulatory Commission for
resolution.
(11) Where a distribution
company adopts quarterly or
bi-annual meter readings . under
subrule (1 )(c) or (d), the
distribution company shall .
(a) issue a monthly estimated
bill to the customer;
(b) reconcile the estimated
consumption with the actual
consumption at the end of the
bi-annual year; and
(c) compute the final natural
gas charges at the end of the
bi-annual year using the
approved natural gas tariff.
(12) In computing the final
natural gas charges, any
difference between the estimated
consumption and the actual
consumption shall be spread over
the six months following or a
longer period that the
distribution company considers
appropriate.
(13) Where a distribution
company's reading of a
customer's meter is irregular
and inconsistent with the usual
reading cycle and as a result,
the customer's bill covers a
period beyond the usual billing
cycle, the distribution company
shall adjust the natural gas
consumption and the tariffs on a
proportional basis.
Contents of a bill
9.
A distribution company shall
ensure that the content of each
bill in a billing cycle include
(a) the name, address, service
address, locality and account
number
of the customer;
(b) the meter number;
(c) the dates of previous and
current meter recordings or
estimates; (d) the date of
issue;
(e) the previous and current
meter recordings or estimates;
(f) the actual or estimated
natural gas consumption in
standard cubic
feet, British thermal unit and
standard cubic meters; (g) the
approved rate and the amount
due;
(h) the payment due date;
(i) the date and amount of the
last payment and
(j)the amount of arrears or any
other charge with the details of
the service provided, credit,
advance refundable and the
balance brought forward.
Estimated bill
10.
(1) A distribution company may
use estimated consumption for
billing for up to six months anJ
inform the customer where (a)
the meter is not functioning;
(b) the meter is faulty and is
registering incorrect
consumption;
(c) the distribution company has
no meter in stock;
(d) an existing meter has been
tampered with; or
(e) access to the premises is
denied for reasons of safety,
bad weather; industrial action
or locked premises.
(2) Despite subrule (1), a
distribution company may use
estimate consumption for a
maximum of seven days to
determine the daily consumption
for billing an industrial
customer whose meter is read
daily. .
(3) When the problem or event in
subrule (1) is remedied and the
distribution company is able to
read the meter, the distribution
company shall reconcile the
actual meter recording with the
estimated natural gas
consumption as soon as
practicable.
(4) Where the estimated bill of
a customer exceeds the
customer's actual consumption by
more than fifty percent, the
distribution company shall treat
the customer in accordance with
rule 16.
(5) An estimated bill shall be
calculated as follows:
(a) the amount shall be based on
the average consumption by the
customer over the previous
thirty days of service or for
the period the service was
provided, which ever is lower,
where the meter is read daily;
(b) ,the amount shall be based
on the average consumption by
the customer over the previous
twelve months where service has
been provided for a period of
twelve months or more;
(c) the amount shall be based on
the average consumption by the
customer for the period the
service was provided, where
service has been provided for
less than twelve months; or
(d) the amount shall be based on
the estimated natural gas to be
consumed provided by the
customer to the distribution
company on the application form
where the service is new.
Bill payment
Payment procedure
11.
A distribution company shall
establish customer service
outlets throughout its area of
operation for
(a) the payment of natural gas
bills; and
(b) enquiries, complaints and
other services.
Dishonoured payment
12.
(1) A distribution company shall
recover the bank charge from a
customer where the customer pays
a natural gas bill by cheque or
by direct debit from an account
with a, bank and the cheque is
dishonoured by the bank
resulting in the distribution
company incurring a bank charge.
(2) A distribution company may
withdraw the customer's right to
pay the bills by cheque where a
customer's cheque is
dishonoured.
Payment by installment
13.
(1) A distribution company may
permit a customer to pay only by
installments if the customer
proves to the satisfaction of
the distribution company the
financial difficulties of the
customer and the inability of
the customer to pay the' bill
subject to subrule (3).
(2) The installments may be paid
concurrently with the current
monthly bill.
(3) The distribution company may
refuse the customer the option
to pay by installments if in the
previous twelve months the
customer has had two installment
payment plans cancelled by the
distribution company.
(4) In making an installment
payment offer to a customer, the
distribution company shall
(a) take into consideration the
customer's natural gas usage and
ability to pay when calculating
the amount of the installment
and the duration of payment;
(b) put in place measures to
monitor the customer's natural
gas usage while on the
installment plan;
(c) provide fair and reasonable
procedures to address any
possible payment difficulties;
(d) make provision for the
recalculation of the amount and
duration of the installment
payment where the difference
between the customer's estimated
natural gas consumption and
actual natural gas usage as read
from the meter may significantly
affect the customer's financial
standing or well-being; and
(e) explain to the customer, how
the amount and duration of
installment payments were
computed.
(5) Where there is non payment
of an installment by the
customer, the customer shall
remain disconnected until full
payment of the arrears has been
settled.
Review of natural gas bill
Disputed bill
14.
(1) A distribution company shall
review and reconcile a bill if a
customer disputes the bill.
(2) The customer shall pay any
undisputed portion of the bill.
(3) Where the entire bill is in
dispute, the customer shall pay
a reasonable amount agreed
between the customer and the
distribution company in respect
of the bill until the
distribution company reconciles
the bill.
(4) The customer shall
(a) pay the amount accrued by
the due date; or
(b).request an installment
payment plan in accordance with
rule 13 where it is established
after review that the bill is
accurate.
Undercharge of natural gas
consumption
15.
(1) Where a distribution company
undercharges a customer, the
distribution company shall first
inform the customer of the
undercharge and may afterwards
take steps to recover the
shortfall.
(2) Where the distribution
company decides to recover the
shortfall under sub-rule (1),
the distribution company shall
(a) give the customer the option
to pay the shortfall by an
installment payment plan; and
(b) not charge interest on the
amount.
(3) The duration of the
installment payment plan under
subrule (2)(a) shall , be
equivalent to the period of the
undercharge or a maximum period
of twelve months whichever is
shorter.
(4) Without limiting subrule
(2), the distribution company is
entitled to recover the
shortfall with interest and
related penalties as determined
by the Public Utilities
Regulatory Commission, where the
distribution company establishes
that a customer is illegally
using natural gas and the use
results in undercharging the
customer.
Overcharge of natural gas
consumption
16.
(1) A distribution company shall
not deliberately overcharge a
customer. (2) Where a
distribution company overcharges
a customer, the distribution
company shall
(a) take immediate steps to
correct the bill; and
(b) after correcting the bill,
immediately credit the account
of the customer with the full
amount overcharged and inform
the customer accordingly. (3) A
customer is entitled to interest
on an overcharged amount at the
prevailing Bank of Ghana
interest rate, if that customer
has been overcharged
continuously for three months or
more.
(4) A distribution company that
contravenes subrule (1) commits
an offence and is liable on
summary conviction to a fine not
exceeding two hundred and fifty
penalty units.
Vacation or disposal of premises
17.
(1) A customer who intends to
vacate or dispose of the
customer's premises shall
(a) inform the distribution
company in writing, at least
(i) ten working days before
vacating or disposing of the
premises, where the customer is
a residential customer, or
(ii) two months before vacating
or disposing of the premises,
where the customer is an
industrial customer,
for the disconnection of the
supply,
(b) deliver the notice required
under paragraph (a), personally
to the distribution company's
offices; and
(c) provide an address to which
the last bill must be sent.
(2) A customer who fails to
comply with subrule (1)(a)'or
(b) is liable to pay for natural
gas supplied to that customer's
premises.
(3) Where the customer gives
notice of a shorter period than
that specified under subrule
(1), and the distribution
company is unable to disconnect
the supply before the customer
vacates or disposes of the
premises, the customer is liable
to pay for natural gas supplied
to the premises up to the date
of disconnection.
(4) The customer shall not be
liable to pay for natural gas
supplied to the premises after
vacating or disposing of the
premises, where the distribution
company receives notice from the
customer but fails to disconnect
the supply on the . notified
date of vacation or disposal of
the premises.
(5) A customer who consumes
natural gas after a date
requested by the customer for a
disconnection of supply is
liable to pay for the natural
gas consumed.
Advance deposit
18.
(1) A distribution company may
request a new customer to
provide an advance deposit
against bills starting from the
date of first supply.
(2) The amount of the deposit
shall be calculated using the
estimated monthly consumption of
natural gas as agreed between
the customer and the
distribution company and in
accordance with the Public
Utilities Regulatory
Commission's approved natural
gas rates.
(3) The distribution company may
in addition to the advance
deposit, request a bank
guarantee in respect of an
industrial or commercial
customer where the customer is
unable to pay the full amount of
the advance deposit requested.
(4) Where an industrial or
commercial customer consistently
pays bills as required over a
period of twelve months, the
bank guarantee provided shall
cease to apply at the expiration
of the twelfth month.
(5) Where a distribution company
requests a customer to provide
an advance deposit, the advance
deposit shall be subject to the
payment of interest in
accordance with rule 20.
Refundable advance
19.
(1) A distribution company may
request an existing customer to
provide a refundable advance
against the actual bill and any
arrears that may accrue in
respect of the premises.
(2) The refundable advance shall
be double the average estimated
monthly bill.
(3) The distribution company may
offset the customer's refundable
advance against any outstanding
bill that is not in dispute.
(4) Where a distribution company
requests a customer to provide a
refundable advance, the advance
shall be subject to the payment
of interest in accordance with
rule 20.
Interest on deposits and
accounts due
20.
(1) A distribution company which
requires its customers to make
cash deposits with it as a
condition precedent to receiving
a service offered by the
distribution company, shall pay
interest on the deposit at a
rate determined by the Public
Utilities Regulatory Commission,
except that interest shall not
be paid on deposits held by the
distribution company for less
than three months.
(2) Subject to subrule (1),
where applicable, a distribution
company shall disclose to the
customer with its final billing
statement in each calendar year,
the amount of interest which has
accumulated on deposits during
the calendar year and the
proportion which stands to the
credit of the customer.
Disconnection of supply of
natural gas
21.
(1) Subject to these Rules, a
distribution company shall
disconnect natural gas supply to
a customer where the customer
(a) fails to pay for bills for
the service used for more than
twenty-eight days from the date
of demand of payment;
(b) defaults on an agreed
payment schedule for the
service;
(c) defaults on an agreed
payment schedule for the
installation of the service;
(d) tampers or interferes with a
meter or a public utility
equipment or permits a person to
damage a public utility's
installation or equipment;
(e) illegally connects the
service or allows the service to
be used in a manner that will
interfere with the supply to
others;
(f) uses a service which is
legally connected in an
unauthorised manner;
(g) refuses to allow a public
utility employee or agent to
read a meter or check utility
equipment when the public
utility employee has followed
the prescribed procedures for
obtaining access; or
(h) requests the termination
personally.
(2) Where a customer's natural
gas supply is disconnected for
failure to pay a bill, the
distribution company shall
request the customer to pay a
refundable advance before
reconnecting the customer in
accordance with rule 19 and the
payment of a reconnection fee
determined by the distribution
company.
(3) Subject to these Rules, a
customer's natural gas supply
shall not be disconnected by the
distribution company where
(a) the natural gas supply to
the customer's premises was
obtained contrary to rule 2, but
without the knowledge or action
of the customer;
(b) the customer has lodged a
complaint with the public
utility in respect of a disputed
bill and has paid or continues
to pay a reasonable amount;
(c) a complaint in respect of a
disputed bill or meter reading
is under investigation by the
Public Utilities Regulatory
Commission or a customer service
committee established by the
Public Utilities Regulatory
Commission and the customer has
paid or continues to pay a
reasonable amount;
(d) an unpaid bill is in the
name of a previous occupant or
owner and the current occupant
of the premises did not use the
service billed; or-
(e) there is no evidence of the
customer having been
undercharged by the distribution
company.
(4) A distribution company shall
disconnect natural gas supply to
a customer, where on the
distribution company's
inspection of the customer's
installation, the distribution
company realises that the
customer's installation does not
conform with the technical and
safety standards.
(5) Despite submle (4), the
distribution company shall
reconnect supply to the customer
in accordance with the standards
of perfom1ance for natural gas
distribution and sale, provided
the customer has complied with
the technical and safety
standards for the supply of
natural gas.
Miscellaneous provisions
Complaints and dispute
resolution
22.
(1) A customer who is not
satisfied with the natural gas
supplied, may complain orally or
in writing to the distribution
company.
(2) Where the distribution
company fails to address the
customer's complaint to the
customer's satisfaction, the
customer may lodge a complaint
with the Public Utilities
Regulatory Commission in
accordance with the Public
Utilities (Complaints Procedure)
Regulations 1999 (L.l. 1651).
Management of assets
23.
A distribution company shall
(a) adopt good asset management
practices in respect of its
equipment and properties to
enable it provide a natural gas
supply service that is
efficient, safe, adequate,
reasonable, quality and reliable
to customers; and
(b) develop and implement
programmes for the maintenance,
operation, repair,
refurbishment, acquisition and
disposal of its assets in order
to
(i) attain its performance
targets, and
(ii) minimize the risk
associated with failure or
reduced performance of assets
that would hinder efficient
delivery of service to
customers.
Contraventions and penalties
24.
(1) Where a distribution company
contravenes an obligation
imposed under these Rules for
which a penalty is not provided,
the Commission in consultation
with the Public Utilities
Regulatory Commission may impose
a pecuniary penalty on the
distribution company as may be
considered appropriate but in
any case not more th~ two
hundred and fifty penalty units.
(2) A customer who,
(a) intentionally interferes or
knowingly allows interference
with the distribution company's
distribution system, meter or
equipment; or
(b) obtains natural gas supply
in an illegal manner under rule
2(1 ) commits an offence and is
liable on summary conviction to
a [me not exceeding two hundred
and fifty penalty units and in
default of payment, is liable to
imprisonment for a term 110t
exceeding twelve months.
(3) Where a contravention of an
offence under these Rules is
committed by a customer or
distribution company which is a
body corporate, a partnership or
other firm, every director or
officer of that body corporate
or any member of the partnership
or firm or other person
concerned with the management of
the customer or distribution
company shall be considered to
have also committed the offence
and is on summary conviction,
liable to payment of
compensation for any damage
resulting from the breach,
unless the person proves to the
satisfaction of the court that
due diligence was exercised to
secure compliance with the
provisions of these Rules.
Interpretation
25.
In these Rules unless the
context 'otherwise requires,
"Act" means the Energy
Commission Act, 1997, (Act 541);
"advance deposit" means an
amount that has been lodged with
the distribution company by a
customer as security against
default in the payment of the
natural gas bill for the first
three months of supply;
"approved natural gas rate"
means a rate approved by Public
Utilities Regulatory Commission;
"bill" means a natural gas
consumption bill;
"billing cycle" means a regular
recurrent time and date within
which a distribution company
submits bills related to natural
gas to a customer,
"certified technician" means a
person certified or licensed by
the Commission to install or
repair a natural gas pipeline,
equipment or appliance;
"Commission" means the Energy
Commission established under
section 1 of the Energy
Commission Act, 1997 (Act 541);
"commercial customer" means a
person who is involved in
commercial activities and
contracts to purchase natural
gas from a distribution company
for commercial purposes;
“customer" includes a person
that purchases or receives
natural gas for consumption and
not for delivery or resale to
any other person,
and a person that owns or
occupies premises where gas is
supplied;
"distribution company" means a
public utility licensed under
the Act to distribute and carry
out retail sale of natural gas
to a customer in an area or zone
designated by the Commission;
"customer meter" means the meter
that measures, the transfer of
natural gas from a distribution
company to a customer;
"distribution system" means a
system that consists of service
lines, compressors, meters, and
other ancillary equipment
interconnected for the supply of
natural gas;
"Installation Completion
Certificate" means a notice of
authentication that indicates
the successful completion of a
piping installation for natural
gas from the distribution
company's meter to the end
user's appliance;
"industrial customer" means a
person that uses natural gas for
mfu'1ufaccturing or processing;
“natural gas" means any
hydrocarbon or a mixture of
hydrocarbon and , other gases
which at a temperature of sixty
degrees Fahrenheit and at
atmospheric pressure are
predominantly in a gaseous
state;
"reasonable amount" means
(a) the average units used by
the customer over the previous
twelve months where service has
been provided for a period of
twelve months or more,
(b) the average units used by
the customer for the period that
the service was provided where
service has been provided for
less, than twelve months, and
(c) sixty percent of the units
used or estimated units used
where the service is new; and
"residential customer" means a
person who uses natural gas in
the home for domestic purposes.
PROF. EK.A. ALLOTEY
Chairperson, Energy Commission
Date of Gazette notification:
14th December, 2007.
Entry into force: 11 the March,
2008.
GPC/ASSEMBLY PRESS, ACCRA.
GPC/A372/300/06/2008
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