The Australian Energy Market Commission (AEMC) today released a draft determination proposing rules that would establish Australia's first national framework for customers who want to stop gas supply to their property, including associated costs.  

The proposed rules address a gap in energy regulations at a time when many Australian households are switching from gas to electric appliances. AEMO's Electricity Statement of Opportunities projects that residential gas demand will fall by 70% over the next two decades.

AEMC Chair, Anna Collyer, said the draft rules respond to an emerging shift in how Australians use energy in their homes.

"More customers are choosing to go all-electric, whether driven by government policies, the economics of rooftop solar and batteries, or environmental concerns. Yet we currently have no clear national rules on customers' options when they want to stop using gas and what costs they should pay if they decide to remove their connection,” Ms Collyer said.  

"Without guidance in the rules, we're seeing uncertainty about the choices available to customers and whether the costs should be paid by the customer leaving or spread across those who remain connected."

The problem we're solving

Currently, when a customer wants to remove their gas connection, known as 'abolishment', there are no consistent national rules. This has led to:

• confusion between disconnection (which can be easily reversed) and abolishment (which is more difficult to reverse, as it would require works to establish a new connection)
• uncertainty around what costs should be allowed to be included in abolishment charges
• uncertainty about whether departing customers or remaining customers should bear the costs.

As more customers leave gas networks, those who remain, often renters or those who can't afford to switch, face higher bills as they share the network's fixed costs among fewer users.

What the proposed new framework would introduce

1. Clear service categories and pricing:

• standard offers for basic connection removals that are simple and straightforward
• cost-reflective charges, meaning customers pay the actual cost of removing their connection (typically involving capping pipes and making the site safe)
• clarity around what costs can be included in removing a customer’s gas connection
• different service levels for complex situations, such as multi-unit buildings or where traffic control may be needed.

2. Better information for customers:

• clear explanations of the difference between stopping gas use (which can be resumed) versus removing the gas connection entirely
• upfront information about costs and what's involved.

How costs would be allocated

Ms Collyer said requiring departing customers to pay their own abolishment costs was the fairest approach.

"Our analysis found that making a customer who is leaving the gas network pay the real cost of disconnection is more equitable than spreading these costs across remaining customers, who are often those with fewer choices about their energy supply,” she said.  

"We acknowledge that this upfront cost might be a barrier for some households wanting to electrify.  

“Some may simply stop their gas service rather than pay for proper abolishment, even when they have no plans to use gas again. This may create more dormant connections that could become a safety risk over time.  

“Networks continue to have obligations to maintain safety standards, and the costs of managing dormant connections may be spread across all remaining customers. That’s why we're encouraging state governments to consider targeted support programs for households that need help with these transition costs."

This proposal is one of several reforms the AEMC is progressing to ensure gas regulations remain fit for purpose as Australia transitions to renewable energy. Related work includes:

• new rules for the cost of connecting to gas (draft determination released September 2025)
• changes to the rules to enable gas networks to plan for declining demand and protect consumer interests during the transition (consultation paper released September 2025).

Next steps

The AEMC is seeking feedback on the draft determination and proposed rules until 11 December 2025.

Following consultation, the Commission will consider all submissions before making a final determination. A final decision is expected early next year.  

If adopted, the new framework would be phased in from 2027, with information requirements beginning earlier to help customers make informed decisions.

For more information, including contact details, visit the project page.

Media: Jessica Rich | 0459 918 964 | media@aemc.gov.au