The Australian Energy Market commission (AEMC) has made a final decision, responding to the Justice and Equity Centre’s proposal for new rules to regulate disconnections from the gas network. The AEMC’s decision creates a framework to minimise the cost of disconnections, providing much-needed consistency and transparency for consumers. When implemented it will ensure people disconnecting and those left on the network will not face unfair additional costs.
This decision creates a critical platform for governments to plan for decreased reliance on gas networks, which must include subsidising the costs of disconnection and electrification, particularly for households who would otherwise be left with costly, inefficient and unhealthy gas connections. But the delayed implementation of this decision means the status quo will continue until 2029 in Victoria, 2031 in NSW, and 2032 in SA and the ACT.
Current world events and likely long-term increases in gas costs make these reforms, with further measures supporting electrification, one of the best ways governments can help support energy affordability for households.
Comments attributable to Douglas McCloskey, Energy and Water Justice Director at the Justice and Equity Centre:
‘The rules have been silent on gas network disconnections, leaving people confused and facing unfair costs that have discouraged disconnection. Today’s decision goes a long way to addressing this.’
‘With more people disconnecting from gas, clear and fair disconnection rules are more important than ever. That’s why we proposed this rule change.’
‘The changes mean people disconnecting from gas will pay the minimum cost necessary to do so safely. And people remaining on the network – which includes renters and people who can’t afford the upfront costs of switching – won’t be left paying unfair costs for other user’s disconnections.’
‘While we welcome this final decision, we’re disappointed it’s going to take years for the rules to come into effect.’
‘This rule change lays a foundation for efficient and safe disconnections from the gas network. Now it’s over to governments to further develop their electrification and energy transition policies, with equity front of mind. A key element must be subsidising the cost of getting off gas, particularly for households who would otherwise struggle to afford it.’
‘We welcome the AEMC’s focus on providing clear and consistent information regarding disconnection, recognising that consumers need information that is accurate, accessible and easy to understand, to help with their decisions on when and how to disconnect from the gas network. It’s great to see these measures will start as soon as possible.’
Media contact: Media and Communications Manager, Dan Buhagiar, 0478 739 280
