On 12 June 2025, the Australian Energy Market Commission (AEMC) initiated consultation on a rule change request from Energy Consumers Australia (ECA) that seeks to update cost sharing associated with new gas connections.

The ECA considers that the gas connection arrangements currently set out in the National Gas Rules (NGR) lead to inefficient gas connections and increase asset stranding risk in the context of declining demand on gas distribution networks. ECA proposes to introduce in the NGR an obligation on gas distributors to charge new customers the full cost of a new gas connection through an upfront connection fee.

The consultation paper also covers a related rule change request

We have also initiated consultation on a rule change request received from The Justice and Equity Centre (JEC) on gas temporary disconnections and abolishments in a joint consultation paper.

The rule change request from JEC seeks to address a gap in the current regulatory framework where the NGR and National Energy Retail Rules (NERR) are silent on how permanent abolishment from gas distribution networks is to be regulated.

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 14 February 2025 the AEMC received a rule change request from ECA to amend the National Gas Rules and the National Energy Retail Rules. The rule change request proposes to amend the NGR to require gas network distributors to charge customers the full upfront cost of new connections.

This rule change request is one of four rule change requests submitted by ECA that seek to address the impacts of declining demand on gas distribution networks.