COAG Consultation Regulation Impact Statement – Australian Energy Market Commission
On 5 September 2019, the Australian Energy Market Commission (AEMC) released the draft rule determination for the National Gas Amendment (DWGM Improvement to AMDQ Regime) Rule 2019 (draft determination). This is to amend the National Gas Rules to replace the current authorised maximum daily quantity (AMDQ) regime in the Victorian declared wholesale gas market (DWGM) with a new entry and exit capacity certificates regime. The AEMC has also released the corresponding Draft National Gas Amendment (DWGM Improvement to AMDQ Regime) Rule 2019 for consultation.
The Commission's draft rule will:
- improve the ability of market participants to obtain certificates to manage scheduling risk through tie-breaking, as well as financial risks through congestion uplift protection
- encourage more efficient use of pipeline capacity by allowing market participants to buy a set of entry and exit certificates, through auctions, that gives greater price and volume certainty to their preferred transportation pathways
- require steps towards a secondary trading platform, which will reduce the search and transaction costs associated with trading certificates in the DWGM
- improve and simplify current arrangements, which may encourage new entrants and promote competition in upstream and downstream markets.
The draft determination has been assessed by the Office of Best Practice Regulation as compliant with requirements for a Council of Australian Governments Consultation RIS.
Submissions are invited by close of business, 24 October 2019. More information on the consultation process, including how to make a submission, can be found here.
Please note: the draft determination is web accessible in PDF only and any accessibility queries should be directed to the Australian Energy Market Commission.