On 28 October 2022 Energy Ministers agreed the Government will expand the functions and powers of AEMO under the National Gas Law to ensure it can address east coast gas system reliability and supply adequacy issues ahead of Winter 2023.
The expanded powers will ensure AEMO can:
- Obtain the information it requires to identify if there are shortfall risks emerging in the east coast gas supply demand outlook (e.g. supply injections, storage levels, southern gas flows);
- Issue notifications to the east coast gas market about identified issues and the outcome that needs to be achieved to address emerging shortfalls (e.g. extra volumed/day required to flow south over a defined period); and
- As a last resort, direct market participants to take or refrain from actions.
Further background on the proposed framework is set out in the original consultation paper published here.
The Prime Minister granted an exemption from the need to complete a Regulation Impact Statement (RIS) due to truly urgent and unforeseen circumstances requiring a decision before an adequate RIS could be undertaken.
A RIS must be completed by the Department of Climate Change, Energy, the Environment and Water within 12 months of the introduction of regulations, consistent with the Regulatory Impact Analysis Guide for Minister’s Meetings and National Standard Setting Bodies.