The current frameworks regulating Australia’s gas network are no longer fit-for-purpose.
We need rules that are fair and support Australian households during the energy system transition, so we’re advocating for comprehensive reform.
This is outlined in the joint response we lead to the Australian Energy Market Commission’s (AEMC) Gas Networks in Transition Consultation paper.
Amongst a range of changes, we’re recommending the regulatory framework:
- Improves transparency of decision-making and promotes the most efficient investment and operation decisions, which enable a rapid energy transition;
- embed strong incentives to plan for and mitigate future risks in the best interests of energy consumers, particularly those facing disadvantage,
- incentivises gas networks to support people to leave networks as they become inefficient to operate,
consistently takes a beneficiary or causer-pays approach to recovering gas network costs to ensure people facing disadvantage pay no more than is fair.
What’s next?
Getting the regulatory framework right is crucial to ensuring better outcomes for people during the energy system transition. These changes are also critical enablers of Government support for electrification as a key lever for emissions reduction. We’ll be engaging further on this and other rule changes related to gas networks, as well as advocating for NSW Government action to support an equitable transition for people relying on gas networks.
