Energy experts at the Justice and Equity Centre welcome the Australian Energy Market Commission’s (AEMC) announcement accompanying the release of its gas networks in transition Directions Paper. This announcement makes important progress towards gas rules that are fit to manage the energy transition.
The JEC’s Energy and Water Justice work has been pivotal in initiating this process of gas network regulatory reform, with the Centre playing a leading role in proposing rule changes alongside Energy Consumers Australia.
Comments attributable to Energy and Water Justice Director Douglas McCloskey:
‘We initiated this process because implementing robust and fair measures to deal with redundant gas assets and ensuring a managed transition for gas networks is an urgent issue – it isn’t something that can be left to deal with in 2040.’
‘The recognition of the need for government action in the directions paper is welcome, as are proposals to improve the practicality of measures to deal with gas network assets that are no longer economic. While these are positive steps, we are concerned the proposals would still see consumers assume an unfair burden of costs through the accelerated depreciation of network assets.’
‘Gas network operators must do more to plan for and actively manage the retreat of network assets that will increasingly become uneconomic. This AEMC proposal makes some good progress, but we need stronger measures to ensure this happens sooner, as the transition away from gas continues to accelerate.’
‘Governments have a critical role to play and it’s great to see the AEMC highlighting this but fit for purpose rules are also urgently needed. More needs to be done to ensure consumers – particularly vulnerable consumers – aren’t burdened with unfair costs over the next decade, and then still left carrying the costs of stranded and redundant gas assets.’
Media contact:
Media and Communications Manager, Dan Buhagiar: 0478 739 280
