Rule Change: Open

Overview

On 5 November 2018 the AEMC received a rule change request from the Victorian Minister for Energy, Environment, and Climate Change to amend the National Gas Rules and consider the introduction of a forward trading market to operate in the Victorian declared wholesale gas market (DWGM). 
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On 5 November 2018 the AEMC received a rule change request from the Victorian Minister for Energy, Environment, and Climate Change to amend the National Gas Rules and consider the introduction of a forward trading market to operate in the Victorian declared wholesale gas market (DWGM). 

The proposed voluntary market would:

  • facilitate the trading of forward contracts for physical gas
  • be based broadly on the design of the Gas Supply Hubs currently operating in Wallumbilla and Moomba
  • operate on the Trayport platform
  • offer a range of contract tenures (e.g. daily, weekly, monthly, seasonal)
  • settle any variances between traded and scheduled quantities at the 6AM DWGM price on the gas delivery day specified in the forward product.

The Commission invites stakeholders to provide written submission on the consultation paper by Friday 26 April 2019. Stakeholders are welcome to use a template for responses.

Workshop

The AEMC held a public workshop in Melbourne on 16 May 2019. Slides from the workshop are available below.

Background

On 5 November 2018, the AEMC received three rule change requests from the Victorian Minister for Energy Environment and Climate Change to amend the National Gas Rules (NGR). The rule change requests proposed the following changes:

  • introduce a clean and simple wholesale gas price for the DWGM in Victoria (DWGM Simpler wholesale price)
  • establish a forward trading exchange which will make it easier for buyers and sellers to trade gas and lock in a future price in the Victorian gas market (DWGM Forward trading market)
  • improve the allocation and trading of pipeline capacity rights (DWGM Improvement to AMDQ regime).

These requests were based on recommendations made by the AEMC in June 2017, as part of the Review of the Victorian declared wholesale gas market final report (DWGM Review).

These three rule changes will be assessed separately, but concurrently. 

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Documentation