The Australian Energy Market Commission today published a consultation paper on proposed rule changes from the Victorian Minister for Energy, Environment and Climate Change and the Australian Energy Market Operator (AEMO) that seek to simplify and improve wholesale gas prices in the Victorian Declared Wholesale Gas Market (DWGM).
The rule change requests seek to change the National Gas Rules to:
- spread 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
- enable physical constraints on withdrawals of gas to be factored in by AEMO when calculating the market price for the DWGM.
The two rule change requests have been consolidated as they are seeking to address similar issues. The consultation paper released today sets out issues that will be considered by the AEMC and seeks stakeholder feedback on the issues raised.
Submissions are due by Friday 26 April 2019.