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Gas

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26

AEMC releases Victorian Declared Wholesale Gas Market Review discussion paper

10 September 2015

The AEMC today released a discussion paper for consultation as part of the Victorian Declared Wholesale Gas Market (DWGM) Review.

This discussion paper has been developed to progress the debate on gas market development and to provide stakeholders with the opportunity to provide more focussed feedback leading into the Draft Report for the DWGM Review, which the Commission will be releasing in December 2015.

The discussion paper identifies and discusses possible gaps in the existing market design and market carriage model under the themes of risk management, investment signals, market-driven investment, regulatory investment arrangements and exports.

Five high level packages for reform have then been developed. Each package includes one or more policy measures to address the gaps identified in the existing market design and regulatory framework in Victoria.

This discussion paper follows the release of the AEMC’s Stage 1 Final Report for the East Coast Wholesale Gas Markets and Pipeline Frameworks Review, which was published on 23 July 2015. The Victorian DWGM Review is one of four workstreams being progressed as part of Stage 2 of that broader review.

Submissions to the discussion paper close on 8 October 2015 and the AEMC will be considering feedback received through the consultation process as we prepare the Stage 2 Draft Report.

New version of the National Gas Rules published to incorporate amendments to the Matched Allocation Process in the Short Term Trading Market

28 May 2015

The Australian Energy Market Commission today published Version 27 of the National Gas Rules, which incorporates the National Gas Amendment (Matched allocation process in the STTM) Rule 2015 which was announced today.

The Commission publishes a new version of the National Gas Rules when changes to the rules commence operation.

For further information, contact:

Communications Manager: Prudence Anderson, 02 8296 7800

New version of National Gas Rules published

07 May 2015

The Australian Energy Market Commission will tomorrow publish Version 26 of the National Gas Rules.

The new version of the rules incorporate the National Gas Amendment (Removal of Force Majeure Provisions in the DWGM) Rule 2014, and the National Gas Amendment (Removal of Gas Bulletin Board emergency information page) Rule 2015, which were made in recent months.

The force majeure provisions and emergency information page had become redundant, having been superseded by changes in the market and, in the case of the Bulletin Board emergency information page, alternative forms of emergency communication.

The Commission publishes a new version of the National Gas Rules when changes to the rules are to commence operation.

For further information, contact:

Communications Manager: Prudence Anderson, 02 8296 7800

Public forum kicks-off consultation on AEMC East Coast Gas Market Review with submissions now open

05 March 2015

The Australian Energy Market Commission (AEMC) last week held a public forum to inform the East Coast Wholesale Gas Market and Pipeline Frameworks Review.

The forum was attended by more than 70 representatives of gas pipeline owners, retailers, producers, large consumers, consumer groups and other market regulatory bodies.

Participants heard from nine presenters from energy market bodies, market participants and other experts covering a range of topics being looked at in the review. The presentations are available to download from the AEMC website, via the project page.

The AEMC explained the background to the review, with new dynamics in the east coast gas market driving the need to consider whether the current arrangements will allow the market to most readily adapt to changing supply and demand conditions over the long term.

The review will therefore look at how gas is bought and sold once it leaves the ground and will consider whether improvements are needed to improve the efficiency of trading markets, to allow for more effective risk management and to strengthen signals and incentives for efficient access to, use of and investment in pipeline capacity.

The forum provided an early opportunity for participants to discuss their views on the issues to be considered in the review, including those raised in the AEMC’s brief discussion paper.

The AEMC now encourages interested stakeholders to provide a written submission by 26 March.  This feedback will help the Commission develop a draft report on stage one of the review which covers the overall direction for east coast market development, including any actions for immediate implementation.

The Commission expects to release the draft report on stage one of the review for further consultation in late April with the final report due with the COAG Energy Council in June 2015.

Stage two of the Commission’s review will be carried out in the second half of this year and will more fully develop any necessary medium and long term market adjustments.

The AEMC’s east coast gas market review supports the Commission’s work to make gas a strategic priority for energy market development. More information about the AEMC’s Strategic Priorities is available on the AEMC website.

For information contact:

Media: Communications Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817

Draft rule to improve incentives for providing contingency gas in the Short Term Trading Market

12 February 2015

The Australian Energy Market Commission has made a draft rule that aims to improve incentives for trading participants to efficiently provide and price contingency gas.

Contingency gas is an emergency mechanism, which may be called on by the Australian Energy Market Operator (AEMO)  to balance supply and demand if normal mechanisms in the Short Term Trading Market (STTM) are unlikely to achieve this balance. 

The use of contingency gas reduces the risk of supply issues for customers. To date, contingency gas has never been called for by AEMO.

Under the draft rule, trading participants would have greater flexibility in structuring their bids or offers for providing contingency gas. This would allow participants to better reflect the prices of different sources of contingency gas, which could encourage them to provide contingency gas in times of emergency.

The draft rule would also clarify AEMO’s ability to request evidence from trading participants following a contingency gas event.  This evidence would be used to determine whether contingency gas was provided as scheduled and to assist AEMO’s reporting on contingency gas events.

The draft rule is likely to provide for a more transparent and accountable process for the payment of contingency gas and improve the confidence of trading participants that they are only paying for contingency gas that has been delivered.

Stakeholders are invited to make submissions in response to the AEMC’s draft determination and draft rule by Thursday 26 March 2015.

For information contact:

AEMC Acting Director, Sarah Lau (02) 8296 7800

Media: Communications Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817

Registration open for public forum on East Coast Wholesale Gas Market and Transmission Pipeline Frameworks Review

04 February 2015

The AEMC will hold a public forum in Sydney on Wednesday 25 February on the forthcoming East Coast Wholesale Gas Market and Transmission Pipeline Frameworks Review.

Interested stakeholders are invited to share their views on wholesale gas markets and gas transportation arrangements in eastern Australia.

At its December 2014 meeting, the COAG Energy Council outlined its vision for Australia’s future gas market and tasked the AEMC to review the design, function and roles of facilitated gas markets and gas transportation arrangements.

The AEMC was asked to provide a report to the first Council meeting in 2015 on actions that can be implemented to strengthen the structure and competitiveness of the east coast gas market.

While the AEMC has yet to receive Terms of Reference for the review, in light of the timetable specified by the Council, the public forum will allow the AEMC to begin identifying and assessing issues arising from the current market and regulatory frameworks.

The forum is an opportunity for stakeholders to provide their views on matters likely to be considered in the review including:

  • the optimal type and number of facilitated markets on the east coast, taking into account the current arrangements and changed gas market conditions;
  • any necessary adjustments in the market and regulatory arrangements to facilitate liquid and competitive wholesale spot and forward markets, including tools for managing price and risk; and  
  • whether there are any impediments to the efficient use of pipelines and whether changes to facilitate trade in pipeline capacity would be appropriate, including implications for the existing transmission access and investment framework.

The AEMC will also seek stakeholder views on the COAG Energy Council’s Gas Market Vision.

Prior to the forum, Commission staff will provide further guidance on areas the AEMC would like to explore with stakeholders at the forum. The Commission also intends to invite written submissions following the forum, which will be due on Thursday 26 March, this year.

As the Terms of Reference for the Review have not yet been finalised, all details about its scope and timing are subject to change.

New Version 25 of the National Gas Rules

02 February 2015

On 2 February 2015, the Commission published Version 25 of the National Gas Rules to incorporate the following Rules:

  • National Gas (Energy Consumers Australia) Amendment Rule 2014

The rule provides for the funding of Energy Consumers Australia (ECA). Under the rule, the Australian Energy Market Operator pays Energy Consumer Australia’s budgeted expenses and recovers the amounts paid from gas market participants.

The AEMC publishes a new version of the National Gas Rules when changes to the rules commence operation.

New Version 24 of the National Gas Rules

08 January 2015

On 8 January 2015, the Commission published Version 24 of the National Gas Rules to incorporate the following Rules:

  • National Gas Amendment (National Gas Bulletin Board Capacity Outlooks) Rule 2014 No. 3

New Version 23 of the National Gas Rules

11 December 2014

On 11 December 2014, the Commission published Version 23 of the National Gas Rules to incorporate the following Rules:

  • National Gas Amendment (Settlement Surplus and Shortfall) Rule 2014 No. 2

Removal of force majeure provisions from the Victorian gas market rules

11 December 2014

The AEMC has made a rule to remove provisions from the National Gas Rules for the Victorian declared wholesale gas market (DWGM). These provisions, including system force majeure and participant force majeure, have been superseded by physical and operational changes in the market.

The Commission has made the rule as proposed by the Australian Energy Market Operator (AEMO). The rule will encourage more appropriate risk management practices and facilitate more accurate decision making.

It clarifies how the market is to operate in times of market stress by,

  • Removing provisions that are redundant and counterproductive in managing unexpected events in the Victorian DWGM. As a result, the National Gas Rules (NGR) will be made clearer and more closely aligned with the current market design, reflecting both physical and operational changes that have occurred in the market.
  • Defining the cumulative price threshold (CPT) in the NGR. This will clarify the role of the CPT as the main trigger of an administered price cap (APC) for the DWGM.
  • Removing NGR provisions that are redundant relating to the obligations on AEMO and market participants with respect to non-compliance with scheduling instructions.

It also introduces a requirement on AEMO to specify the consultation process to be used to determine the APC and the CPT as part of the administered pricing procedures.

This rule implements the proposal submitted by AEMO on 6 February 2014. It will take effect on 4 May 2015.

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