Market Review: Open

Overview

The AEMC is conducting a review of the Gas Supply Guarantee at the request of energy ministers. 
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The AEMC is conducting a review of the Gas Supply Guarantee at the request of energy ministers. 

The review, to be completed by First Quarter 2022, is to consider whether the Gas Supply Guarantee should continue in either its current or an amended form. 

Draft report

On 29 July 2021 the AEMC published a draft report for the Review of the Gas Supply Guarantee.

The draft report recommends: 

  • the Australian Government to extend the term of the Gas Supply Guarantee another three years to March 2026. 
  • that an assessment on the long term need of the Gas Supply Guarantee be carried out prior to the conclusion of this extended period. 

In making its draft recommendation, the AEMC considered the outlook for gas-powered generators in the national electricity market (NEM) as well as the outlook for the east coast gas market. 

The AEMC has also looked at the various tools available to support managing reliability in the NEM as well as the tools that enable gas market participants to actively manage their gas usage. 

The draft report also explores potential improvements for the NEM and east coast gas market, focusing on two key areas: 

  • potential amendment of the definition of a gas supply shortfall 
  • how the work of the planned maintenance coordination forum run by Australian Energy Market Operator (AEMO) can be best acknowledged. 

Submissions to the draft report are due on Thursday 9 September 2021

Consultation process

On 11 March 2021 the AEMC published a consultation paper which sought stakeholder input on whether a mechanism is still required, and if so, whether it should be in its current, or another, form. The Commission received 11 submissions, which can be found below.

The AEMC also held over 25 meetings with stakeholders during the initial consultation phase and worked collaboratively with AEMO.

Background

On 9 September 2020, the energy ministers provided the AEMC with terms of reference to conduct a review of the Gas Supply Guarantee.

Under the terms of reference from the energy ministers, the AEMC will carry out the review during 2021 and report back to the ministers in the first quarter of 2022.

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