On 5 September 2019, the Australian Energy Market Commission (AEMC) released the draft rule determination for the National Gas Amendment (DWGM Simpler Wholesale Price) Rule 2019 (draft determination). This is to amend the National Gas Rules (NGR), in relation to the Victorian Declared Wholesale Gas Market (DWGM). The AEMC has also released the corresponding Draft National Gas Amendment (DWGM Simpler Wholesale Price) Rule 2019 for consultation.
The Commission's draft rule will:
- replace the requirement for the Australian Energy Market Operator to not consider transmission constraints in the pricing schedule with a requirement to take into account any transmission constraints affecting withdrawals of gas.
- simplify the mechanism that market participants can use to protect against the risk of incurring congestion uplift payments, by:
- removing the need for market participants to inject gas to be eligible for protection against congestion uplift payments
- removing the concept of congestion uplift hedge and the need for market participants to submit injection hedge nominations
- implementing a new congestion mechanism based on market participant's daily withdrawals of gas exceeding their allocation of exit capacity certificate, on a whole of the Declared Transmission Systems basis.
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.