Rule Change: Open

Overview

The rule change request seeks to simplify wholesale gas prices by spreading congestion uplift payments across market participants and enabling physical constraints on scheduled withdrawals to be included in the pricing schedule for the Victorian Declared Wholesale Gas Market (DWGM).
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The rule change request seeks to simplify wholesale gas prices by spreading congestion uplift payments across market participants and enabling physical constraints on scheduled withdrawals to be included in the pricing schedule for the Victorian Declared Wholesale Gas Market (DWGM).

Consultation process

On 14 March 2019 the Commission published a consultation paper on the rule change request. Eleven submissions were received. All public submissions can be found below. 

Extension

On 13 June 2019 the Commission extended the period of time to make 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.

Consolidated rule change request

On 5 November 2018, the AEMC received a rule change request from the Victorian Minister for Energy, Environment and Climate Change that seeks to amend the National Gas Rules (NGR) by spreading the recovery of congestion uplift payments across market participants, instead of the current approach that aims to recover congestion uplift payments from those parties that caused the congestion. 

On 24 November 2016, the AEMC received a rule change request from the Australian Energy Market Operator (AEMO), on behalf of EnergyAustralia. The rule change request seeks to amend the NGR to enable AEMO to include physical constraints on scheduled withdrawals from the Declared Transmission Systems (DTS), in the pricing schedule for the Victorian DWGM. 

As these two rule change request relate to a common subject matter and are seeking to address similar issues the Commission has consolidated them. The consolidated rule change request is referred to as the DWGM simpler wholesale price.

Related rule change requests

The Commission will also assess two other rule change requests from the Victorian Minister (on DWGM improvement to AMDQ regime and DWGM forward trading market ) separately, but concurrently, with the DWGM simpler wholesale price rule change request. The Commission will also consider potential interactions between all three rule change requests.

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

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Documentation