COAG Decision Regulation Impact Statement – Australian Energy Market Commission
On 12 March 2020, the Australian Energy Market Commission (AEMC) released a final rule determination that amends 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. These certificates can be purchased by market participants at an auction run by AEMO to gain the benefits of injection and withdrawal tie-breaking.
The Commission is satisfied that the more preferable rule is likely to contribute to the achievement of the National Gas Objective. The final rule:
- improves the ability of market participants to obtain capacity certificates to manage scheduling risk through tie-breaking benefits;
- creates a level playing field for all market participants to obtain capacity certificates through primary auctions, which allows them to be allocated to those participants that value them most and promotes efficient use of pipeline capacity;
- encourages more efficient allocation of pipeline capacity by allowing market participants to buy a set of entry and exit capacity certificates that gives greater price and volume certainty to their preferred gas transportation pathways; and
- improves and simplifies current arrangements, which may encourage new entrants and promote competition in upstream and downstream markets and inter-regional trade.
The AEMC’s final rule determination has been assessed by the Office of Best Practice Regulation as compliant with requirements for a Council of Australian Government’s Decision RIS.
Please note: any accessibility queries should be directed to the Australian Energy Market Commission.