On 12 June 2025, we initiated consultation on a rule change request from The Justice and Equity Centre (JEC) that seeks to establish a regulatory framework for gas temporary disconnections and permanent abolishment.

The JEC seeks to address a gap in the current regulatory framework where the National Gas Rules (NGR) and National Energy Retail Rules (NERR) are silent on how permanent abolishment from gas distribution networks is to be regulated. The JEC considers this can lead to inconsistent regulatory decisions and that a consistent regulatory framework is necessary to ensure consumer safety and health, equity and economic efficiency.

JEC proposes that the NGR and NERR be amended to set out the arrangements that would apply in the case of temporary disconnection and permanent abolishment of a retail customer from a gas distribution network on the East Coast, including:

• definitions for different disconnection services and allow for contestable provision of some services
• a framework for cost-reflective disconnection/abolishment charges, with the disconnecting/abolishing customer having to pay the full costs for a disconnection/abolishment service to avoid any socialisation of costs.  

The consultation paper also covers a related rule change request

We have initiated consultation on a similar rule change request from Energy Consumers Australia (ECA) regarding gas connections. Given their similarities, we have addressed both of these rule change requests as part of a joint consultation paper. The second rule change request from ECA specifically seeks to update the gas connection arrangements currently set out in Part 12A of the NGR that ECA considers leads to inefficient gas connection decisions and increases asset stranding risk in the context of declining gas demand. ECA proposes to amend the NGR to require gas network distributors to charge customers the full upfront cost of new connections to address this issue.

We are interested in your views on the issues raised in the rule change request and the proposed solution. Stakeholder submissions are due by 10 July 2025.

Background

On 9 May 2025 the AEMC received a rule change request from The JEC to amend the National Gas Rules (NGR) and the National Energy Retail Rules (NERR). The rule change request proposes the establishment of a regulatory framework for gas temporary disconnections and permanent abolishment.