The Australian Energy Market Commission (AEMC) is considering a rule change request relating to compensation for market participants that may be impacted following intervention by AEMO in gas markets.

Federal and State Energy Ministers recently placed additional responsibilities on the Australian Energy Market Operator (AEMO) to monitor threats and risks to gas supply within Australia’s East Coast Gas System (ECGS) and to take actions to address shortages and ensure reliability for consumers.

Through these responsibilities, AEMO may make directions to support the reliability and adequacy of supply.

In the event AEMO intervenes in the ECGS, participants may incur costs and be eligible for compensation.

Compensation measures for the broader ECGS are currently based on the existing compensation frameworks in the Victorian Declared Wholesale Gas Market (DWGM). However, recent experiences in the National Electricity Market (NEM) and DWGM compensation frameworks have highlighted opportunities for refinements of the compensation and dispute resolution frameworks. 

The AEMC is now investigating proposed changes from Energy Ministers to improve clarity, efficiency and consistency for entities that may be affected by AEMO interventions.

Examples of potential solutions identified by Energy Ministers, and explored in the consultation paper, include changes to the governance and procedural arrangements, the scope of the frameworks, and the funding arrangements that underpin them. 

The consultation paper outlines the issue, proposed solutions and asks a number of key questions for stakeholders.  

Submissions close 20 July 2023. A public forum will be held on 6 July to assist those preparing written submissions, please click here to register.

For more information, visit the project page. 

Media: Nicole Stokes, 0401 826 522, media@aemc.gov.au.