Rule Change: Open

Overview

This rule change request from the Victorian Minister for Energy Environment and Climate Change proposes to: 
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This rule change request from the Victorian Minister for Energy Environment and Climate Change proposes to: 

  1.  Introduce separate, tradable entry and exit AMDQ rights
  2. Introduce an exchange to improve secondary trading of AMDQ rights (permanent transfer) and benefits (temporary transfer)
  3. Make AMDQ available for a range of different tenures.

The proposed changes are expected to reduce the complexity of the AMDQ regime and make it easier for participants to secure and trade AMDQ rights. Further, it is a step towards providing better signals for capacity usage to help to facilitate market-led investment.

Consultation paper

On 14 March 2019 the AEMC published a consultation paper for the DWGM improvement to AMDQ regime rule change.

The consultation paper sets out a summary of, and background to, the rule change request and outlines the process for making submissions. Issues for stakeholder comment include: 

  • the complexity of the current AMDQ regime and how to address it
  • the introduction of measures to facilitate secondary trading of AMDQ
  • how to make AMDQ available for a range of different tenures in order to maximise the utilisation of the DTS.

Submissions to the consultation paper are due by Friday 26 April 2019.

Stakeholders are welcome to use a template for their responses.

Workshop

The AEMC will hold a public workshop in Melbourne on 16 May 2019. Register for the workshop.

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 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). 

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Documentation