The Australian Energy Market Commission (AEMC) today started consultation on a rule change request made by the Australian Energy Market Operator (AEMO), which seeks to improve incentives for trading participants to supply and efficiently price contingency gas.

Contingency gas may be called upon by AEMO to balance supply and demand at a Short Term Trading Market hub if normal STTM mechanisms (such as the Market Operator Service) are unlikely to achieve this balance.

The use of contingency gas avoids the need to involuntarily curtail STTM shippers supplying or STTM users withdrawing at the hub.

A price is effectively set to make additional supplies of gas available for operational purposes to reduce the risk of supply issues for customers.

More information about the AEMO proposal and a copy of the AEMC’s consultation paper is available at

The consultation paper has been prepared to facilitate public consultation and assist stakeholders in providing submissions on the rule change request.

Submissions are due by Thursday 4 December 2014.