East Coast Gas Reforms

In August 2022, Energy Ministers agreed to take a range of actions to support a more secure, resilient and flexible east coast gas market. These actions include urgent regulatory amendments that empower the Australian Energy Market Operator (AEMO) to better manage gas supply adequacy and reliability risks ahead of winter 2023; and in the longer term, progress development of further supply adequacy and reliability measures which will help to guide how AEMO delivers its new functions. 

Key points about the Gas Reforms

• Energy Ministers developed a package of gas market reforms that seek to provide AEMO with the tools to address both the emerging issues for winter 2023 (Tranche 1) and also deliver longer term solutions for AEMO to manage threats to the east coast gas market (Tranche 2).
• The gas reforms present a material change to AEMO’s roles and responsibilities across the east coast gas market.
• AEMO is required to have implemented the Tranche 1 reforms ahead of winter 2023. 
• Tranche 1 initiatives provide the regulatory framework for:
  • Transparency: collection of data to monitor trends in supply and demand across the east coast gas system, to assess the likelihood of a threat to the reliability or adequacy of gas supply.
  • Signalling: identifying, communicating and publishing information about actual or potential threats within the east coast gas system.
  • Directions powers: AEMO has the ability to issue directions to gas industry participants as required to resolve a potential or actual threat (this includes a compensation framework).
  • Trading: AEMO has the ability to trade in natural gas to maintain or improve the reliability or adequacy of gas supply in the east coast gas system.

Further information on the regulatory amendments to extend AEMO’s functions and powers to manage east coast gas supply adequacy can be found on the Australian Government Department of Climate Change, Energy, the Environment and water website.

Information paper - final Regulations and Rules

On 22 February 2023, the Department of Climate Change, Energy, the Environment and Water published an Information paper - final Regulations and Rules. The information paper provides stakeholders with a high-level overview of the rule refinements that have been agreed by Energy Ministers which incorporate consultation feedback. This Information paper will support AEMO’s industry consultation on the development of procedures and guidelines ahead of implementation of the new framework.

Stakeholder Engagement

Dedicated Working Group

AEMO has established an East Coast Gas System Reforms Working Group for affected market participants and other related bodies to support the implementation of these reforms. The working group will be kept up to date with the overarching coordination of reform initiatives as well as support effective engagement in both reform phases. 

Meeting contents, Terms of Reference and outcomes are available on the East Coast Gas System Reforms Working Group landing page.

For more information about this working group or to attend, please email GasReform@aemo.com.au. 

Other AEMO Forums and Working Groups

Existing reform related forums, including the Gas Retail Consultative Forum (GRCF), Gas Wholesale Consultative Forum (GWCF) and the Consumer Forum will be provided an update when there is a key milestone, such as a relevant consultation publication, to optimise stakeholders’ touch points with AEMO.

Reform Consultations

Information on formal consultations related to the East Coast Gas Reforms are listed below, with a link to the relevant page of the Consultation section of AEMO’s website.

Frequently Asked Questions

The following document summarises AEMO's responses to Frequently Asked Questions (FAQs) on the implementation of the East Coast Gas Reforms.