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.
View more

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.

The rule change request proposed to:

  • introduce separate, tradable entry and exit authorised maximum daily quantity (AMDQ) rights
  • introduce an exchange to improve secondary trading of AMDQ rights (permanent transfer) and benefits (temporary transfer)
  • make AMDQ available for a range of different tenures.

Draft determination

On 5 September 2019 the AEMC published a more preferable draft rule.
The more preferable draft rule:

  • applies from the start of the next declared transmission system (DTS) access arrangement period in January 2023
  • retires the current instruments of authorised MDQ and AMDQ credit certificates (AMDQ cc), and replaces these with:
    • entry capacity certificates that provide injection tie-breaking benefits
    • exit capacity certificates that provide withdrawal tie-breaking benefits and congestion uplift protection
    • uncontrollable exit capacity certificates that provide congestion uplift protection and limited curtailment protection
  • requires AEMO to conduct system capability modelling at least annually to determine the maximum amount of capacity available for allocation of capacity certificates, with the first allocation of capacity certificates in respect of existing and new capacity to occur via a primary auction
  • requires AEMO to take the initial steps to create a secondary trading platform for capacity certificates. AEMO is required to propose an amendment to the exchange agreement by 1 January 2022 to facilitate secondary trading of capacity certificates through the gas trading exchange.

Submissions on the draft determination and draft rule closed on 24 October 2019.

Consultation process

On 14 March 2019 the AEMC published a consultation paper on the rule change request. Eleven submissions were received, which can be found below.  

The AEMC also held a stakeholder workshop in Melbourne on 16 May 2019 with extensive participation from a wide range of participants. Slides from the workshop are available below. 

On 13 June 2019 the Commission published a notice under s. 317 of the NGL to extend the publication date of the draft determination to 5 September 2019. The Commission considers that this extension is necessary due to the complexity of the issues raised in the rule change request. 

Submissions on the draft determination and draft rule closed on 24 October 2019. We receive thirteen submissions, which can be found below. 

On 14 November 2019 the Commission published a notice under s. 317 of the NGL to extend the publication date of the final determination to 12 March 2020. The Commission considers that this extension is necessary due to the complexity and volume of the issues raised in stakeholder submissions. 

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)

View less

Documentation