Consumers will not be left holding the bill for stranded gas network assets, and gas companies will no longer be able to claw back money spent in the name of “demand growth” under a package of regulatory reforms being proposed by the energy market rule maker.
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The chief risk for gas consumers – which has been the focus of multiple rule change requests from Energy Consumers Australia (ECA) and the Justice and Equity Centre (JEC) – is rising and volatile gas prices.
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In a statement on Thursday, JEC said the AEMC proposal makes good progress, but calls for stronger measures to ensure the reforms are in place in good time to manage the consumer gas exodus.
‘We initiated this reform 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,’ said energy and water justice director Douglas McCloskey.
‘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,’ McCloskey adds.
‘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.’
