Announcement date
8 September 2022
Link to announcement
AEMC publishes final rule to incorporate distribution connected facilities in Victorian gas market | AEMC
Problem being addressed
The Declared Wholesale Gas Market (DWGM) was established by the Victorian Government in 1999 to support retail competition and encourage diversity of supply and upstream competition. Only gas facilities that are connected to the declared transmission system (DTS) are able to participate in the DWGM, which excludes the participation of distribution connected production and storage facilities. As distribution connected facilities may include hydrogen, biomethane and renewable gas facilities, existing arrangements were not consistent with Victoria’s goals of unlocking alternative gases and establishing a hydrogen industry as outlined in Victoria’s Gas Substitution Roadmap.
Proposal
The Australian Energy Market Commission (AEMC) has made a final rule to allow distribution connected facilities to participate in the Victorian declared wholesale gas market (DWGM). These facilities will be able to supply natural gas, low-level hydrogen blended gas, biomethane and other renewable gases.
This work addresses that by amending the National Gas Rules (NGR) to also recognise facilities connected at the distribution level.
The changes primarily apply to distribution connected facilities with minor changes being made to existing facilities where a cohesive approach was required. The changes are categorised across three key areas:
- Market operations, including registrations, scheduling and bidding
- Market settlements, including title, custody and risk, and allocations
- System operations, including connections, metering, and gas quality.
The new framework will commence on 1 May 2024.
Assessed RIS outcome
Compliant Decision RIS