In addition to the work the Australian Energy Market Commission is carrying out for the COAG Energy Council in the East Coast Wholesale Gas Market and Pipeline Frameworks Review, we have been asked by the Victorian Government to carry out a specific Review of the Victorian Declared Wholesale Gas Market.
Given a similar group of stakeholders may be interested in both reviews, the AEMC will carry out the reviews in parallel. We intend to streamline stakeholder consultations across the two reviews and more information will be forthcoming as the reviews progress.
With new dynamics and structural change in the gas market, the Victorian gas review will look at whether current arrangements will allow the market to most readily adapt to changing supply and demand conditions over the long term.
It will consider how gas is bought and sold once it leaves the ground and whether changes are needed to improve the efficiency of the market.
Specifically, the Terms of Reference require the AEMC to consider:
- The ability of market participants to manage price and volume risk in the Victorian Declared Wholesale Gas Market and options to increase the effectiveness of risk management activities;
- Whether market signals and incentives are providing for efficient use of, and efficient and timely investment in, pipeline capacity on the Declared Transmission System;
- If, and to what extent, the current Victorian Declared Wholesale Gas Market arrangements inhibit trading of gas between the Declared Transmission System and interconnected facilities and pipelines; and
- Whether the Victorian Declared Wholesale Gas Market arrangements continue to facilitate market entry and promote competition in upstream and downstream markets and how this could be improved.
The review will be conducted over a maximum period of 18 months, with a draft report due to the Victorian Government by December 2015, and a final report following a response from the Victorian Government.
The AEMC held a public forum in Sydney on 25 February 2015 where issues relevant to both the east coast and Victorian reviews were discussed. The AEMC is encouraging stakeholders to make public submissions to inform the east coast review. These submissions will also inform the Review of the Victorian Declared Wholesale Gas Market.
The AEMC’s review of the Victorian Declared Wholesale Gas Market, alongside the East Coast Wholesale Gas Market and Pipeline Frameworks Review, supports the Commission’s work to make gas a strategic priority for energy market development. More information about the AEMC’s Strategic Priorities is available on the AEMC website.
For information contact:
Media: Communications Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817