Submission to the Review into extending the regulatory frameworks to hydrogen and renewable gases

PIAC responded to the Australian Energy Market Commission’s (AEMC) Review into extending the regulatory frameworks to hydrogen and renewable gases. 

PIAC asserted that the use of Natural Gas Equivalents (NGE) is not in the interests of consumers and is not a meaningful or efficient means of emissions reduction. Consumers and the community should not subsidise the export ambitions of the hydrogen industry through blending of gas in networks, which does not benefit consumers. Modifying gas networks to accommodate blends and other gases will increase costs for consumers, reduce the quality and efficiency of gas delivered to consumers, and impede the rapid, efficient decarbonisation of the energy system possible through electrification. 

If NGE products are to be allowed in gas networks, PIAC made a range of recommendations to ensure consumers are protected and transparently informed of the costs and implications of the use of NGEs. The focus of any changes to regulations should ensure genuine equivalence of the quality, safety and efficiency of the products delivered to consumers. The interests of all energy consumers must be prioritised in all decisions impacting the future of the energy system.