Regulatory amendments to increase transparency in the gas market
Publication date: Thursday, 19th November 2020.
On 19 November 2020, Energy Senior Officials released for consultation a package of draft regulatory amendments required to give effect to the gas market transparency reforms as outlined in the Decision RIS endorsed by Energy Ministers in March 2020.
- The consultation paper and non-confidential submissions received are available on this page.
On 20 July 2021, Energy Ministers agreed to further refinements to the framework, taking into account feedback provided in response to this consultation.
- Once implemented, the transparency reform measures will enhance transparency in the eastern and northern Australian Gas markets, addressing information gaps and asymmetries relating to gas and infrastructure prices, supply and availability of gas, gas demand, and infrastructure used to supply gas to end-markets. This contributes to:
- The National Gas Objective, which is to ‘promote efficient investment in, and efficient operation and use of, natural gas services for the long terms interests of consumers of natural gas’; and
- The Energy Ministers’ Vision, which is to ‘establish a liquid gas market that provides market signals for investments and supply, where responses to those signals are facilitated by a supportive investment and regulatory environment’.
- The transparency reforms will facilitate more efficient planning and investment in the domestic gas markets, provide more accurate signals about how well the market is functioning and enable market participants to more efficiently respond to changing market conditions.
- The measures will also promote competition by reducing search and transaction costs that gas users face during the price discovery process and by reducing the imbalance of bargaining power that users can face in each stage of the supply chain.
Once the Bill is passed, and the regulations and rules are made, the transitional process towards commencement of registration and reporting requirements will begin.
The Bill can be found here: NATIONAL TRANSPARENCY AMENDMENT BILL 2021.UN_.PDF
This page will be updated as this process progresses.