As more Australians choose to switch away from gas to electrify, the Australian Energy Market Commission (AEMC) has finalised Australia's first national framework for customers who want to undertake an abolishment to permanently remove their gas connection.
The new rules establish clear definitions, cost structures and information requirements for gas abolishment services, filling a gap in energy regulations at a time when residential and small commercial gas demand is projected to fall by around 80 per cent over the next two decades.
Why this matters
Until now, there have been no consistent national rules for customers wanting to abolish their gas connection. This has led to confusion about the difference between disconnection (which can be reversed) and abolishment (which is permanent), and uncertainty about who should pay.
As more customers leave the gas network, the costs of operating and maintaining it are shared among fewer remaining customers. Without a clear framework, those costs, including the costs of others' abolishments, risk being passed on to customers who often have the fewest choices about their energy supply: renters, apartment dwellers and low-income households.
For most customers, the new framework will mean no change other than access to better information about their options.
What the new framework introduces
The final rules establish:
- Clear, outcomes-based definitions distinguishing disconnection from abolishment
- Model standing offers for basic abolishment services with upfront pricing, approved by the Australian Energy Regulator (AER) to ensure charges are prudent and efficient
- Cost-reflective charging, so customers who abolish pay the efficient cost of the service rather than those costs being spread across remaining customers
- New information requirements so customers can make informed decisions
- Flexibility to accommodate different jurisdictional approaches to the future of gas, including phased decommissioning.
- Distributors remain responsible for ensuring their networks meet safety requirements, with these costs shared across all customers
Planning for the future of gas networks remains the role of jurisdictional governments, and the new framework is designed to support this.
AEMC Chair Anna Collyer said the framework supports efficient and equitable outcomes as gas demand declines.
"Customers have the right to choose the energy services that work for them, unless there is a safety issue or jurisdictional policy that says otherwise. These rules give customers a clear pathway to leave the gas network on fair terms, while ensuring those who remain are not left paying for someone else's decision," Ms Collyer said.
"Importantly, these rules do not create a barrier for customers who want to switch away from gas. Customers can make the switch and then decide whether to disconnect or abolish their gas connection based on what is right for their circumstances."
The final determination also identifies issues outside the national energy framework and recommends that jurisdictional governments consider these alongside their electrification and decarbonisation policies.
What happens next
The new framework will be implemented in phases from 2027. Information requirements for distributors commence on 1 October 2026, with retailers to follow by January 2027. Key obligations for abolishment services will take effect at the start of each network's subsequent access arrangement period.
This longer lead time allows jurisdictional governments and safety regulators time to develop their approaches, while current costs to remaining customers remain low.
This determination is part of a broader package of AEMC gas reforms, including changes to gas connection charges and the Gas Networks in Transition review.
Visit the project page for the final determination and supporting materials.
About the AEMC
The AEMC is an independent statutory body that advises Australian governments on energy market rules and conducts reviews of the energy sector. The AEMC's work is guided by the long-term interests of energy consumers, including reliable, safe and affordable energy.
Media: Jessica Rich, 0459 918 964, media@aemc.gov.au