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Proposed regulatory amendments to extend AEMO’s functions and powers to manage east coast gas supply adequacy

Publication date

 

Consultation opened:  12pm AEST on 26 September 2022

On 12 August 2022, Energy Ministers agreed to take a range of actions to support a more secure, resilient and flexible east coast gas market. These actions include:

  • urgent regulatory amendments that empower the Australian Energy Market Operator (AEMO) to better manage gas supply adequacy and reliability risks ahead of winter 2023
  • in the longer term, progress development of further supply adequacy and reliability measures which will help to guide how AEMO delivers its new functions. 

These actions seek to address the winter 2023 east coast gas supply adequacy concerns raised by both the ACCC in its July Gas inquiry interim report and AEMO’s Gas Supply and System Adequacy Risks report (PDF 1.22 MB). See further detail below.

Energy Senior Officials undertook consultation between 26 September and 21 October 2022,  seeking stakeholder comments on proposed regulatory amendments which includes a draft Bill, draft Regulations and an initial set of ‘Minister initiated’ rules.

On 28 October 2022, Energy Minister agreed to the amendments to the National Gas Law to extend AEMO’s functions and powers to manage reliability and gas supply adequacy for the east coast gas market over winter 2023 and beyond. The Bill was introduced in the South Australian Parliament on 30 November 2022 and will be progressed over the coming months.

In December 2022, Energy Ministers will consider the initial rules package which sits under this new framework based on consultation feedback.

Consultation process and submissions

Consultation on the draft Bill closed on 7 October 2022 to ensure sufficient time to progress the Bill through South Australian parliamentary processes prior to winter 2023.

Consultation on the draft Regulations and Rules closed on 21 October 2022.

The documents consulted on are listed below:

A virtual information session was held on 29 September 2022 to provide stakeholders with an opportunity to learn from officials about the objectives of the consultation process, and participate in a Q&A session.

Slides presented at the session are available (PDF 1.04 MB).

To assist stakeholders in providing feedback, a response template was provided:

Accessible document versions

Accessible versions of the consultation paper and submission template are also available:

Stakeholder submissions

The following non-confidential stakeholder submissions were received in response to the Consultation paper – Extension of AEMO functions and powers to manage supply adequacy in the east coast gas market.

Draft Bill

ACCC (PDF 310 KB)

AFMA (PDF 668 KB)

AGIG (PDF 372 KB)

APA (PDF 579 KB)

APGA (PDF 246 KB)

APPEA (PDF 501 KB)

Australian Aluminium Council (PDF 759 KB)

Brickworks (PDF 612 KB)

Chemistry Australia (PDF 211 KB)

CSR (PDF 174 KB)

Energy and Sustainability Consultant (PDF 162 KB)

Energy Australia (PDF 303 KB)

Epic Energy (PDF 284 KB)

EUAA (PDF 326 KB)

Jemena (PDF 236 KB)

Origin (PDF 317 KB)

Power and Water Corporation (PDF 291 KB)

QUEN (PDF 160 KB)

Snowy Hydro (PDF 411 KB)

Draft Regulations and Rules

AEC (PDF 253 KB)

AER (PDF 185 KB)

AFMA (PDF 899 KB)

AGIG (PDF 252 KB)

Alinta Energy (PDF 172 KB)

APA (PDF 556 KB)

APGA (PDF 454 KB)

Australian Aluminium Council (PDF 438 KB)

Brickworks (PDF 245 KB)

Chemistry Australia (PDF 221 KB)

Cooper Energy (PDF 167 KB)

Energy and Sustainability Consultant (PDF 162 KB)

Energy Australia (PDF 250 KB)

Energy Networks Australia (PDF 275 KB)

EUAA (PDF 417 KB)

ExxonMobil (358 KB)

Jemena (PDF 336 KB)

Origin (PDF 321 KB)

AEMO’s Gas Supply and System Adequacy Risks report

On 8 June 2022, Energy Ministers agreed to task AEMO to provide an urgent update on the east coast gas supply and demand situation, including identification of any market constraints and provide advice to Energy Ministers on any actions Energy Ministers and the Commonwealth may need to take to address these issues.

In response to this tasking, AEMO presented a Gas Supply and System Adequacy Risks report (PDF 1.22 MB) to Ministers at their August meeting. It contained updated analysis following AEMO's Gas Statement of Opportunities (GSOO) released March 2022 (PDF 2.92 MB), and took into consideration recent developments in the east coast gas market and the National Electricity Market.

The report provides a point-in-time assessment of gas supply and system adequacy risks facing the east coast gas market between now and the end of 2023 based on information available as at 25 June 2022. The report covers:

  • recent events in the east coast gas market
  • updated outlooks for gas demand, supply and supply adequacy – including forecast risks of shortfalls until the end of 2023
  • information on market design issues which may be exacerbating the risks of shortfalls.

Categories

Energy Ministers priority issue

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