Conditional exemptions - Mandatory Gas Code of Conduct

The Competition and Consumer (Gas Market Code) Regulations 2023 (Code) is made under Part IVBB of the Competition and Consumer Act 2010 (CCA). It sets out requirements for the conduct of new wholesale supply contract negotiations between covered suppliers and buyers of regulated gas, along with price rules that apply to the supply of that gas. To ensure these requirements are met, non-compliance with Code provisions is subject to penalties.

Deemed exemptions from the pricing rules will automatically apply to small producers who produce less than 100 PJ of gas per year and who supply all of that gas to the domestic market. Foundational agreements and gas master supply agreements are also deemed exempt from the Code’s information and timing provisions relating to EOIs, offers and agreements.

Covered suppliers not covered by these deemed exemptions are able to apply for conditional exemptions from penalty provisions of the Code including:

an exemption from pricing requirements of the Code subject to conditions that support the supply of reasonably priced gas to the domestic market
a limited exemption pathway from non-price penalty provisions for businesses unintentionally captured by Code provisions, or where Code provisions cannot reasonably operate as intended.

The Energy Minister and the Resources Minister must each be satisfied that it is appropriate to grant a conditional Ministerial exemption and that the conditions specified in the exemption are appropriate.

More detailed information about the application and assessment process is included in the relevant application forms.

For more information please contact: gasmandatorycode@dcceew.gov.au.