The Australian Energy Market Commission published a draft determination and draft rule on 30 November 2023 in response to a rule change request from the Energy Ministers Sub-Group (Energy Ministers) that sought to amend the National Gas Rules (NGR) in order to improve the compensation framework for Australian Energy Market Operator (AEMO) Directions in the east coast gas system (ECGS).

Our draft rule would support reliability and supply adequacy in the ECGS

Energy Ministers identified a number of issues with the existing framework in terms of clarity, consistency, efficiency and effectiveness. The draft rule would address these issues by making amendments to Parts 15c, 19, 20 and 27 of the NGR to:

• establish a new framework for the assessment of compensation claims
• refine the framework for compensation for AEMO directions in the ECGS to support reliability and supply adequacy  
• make consequential changes to rules governing the Declared Wholesale Gas Market (DWGM) and Short Term Trading Market (STTM) to ensure the application of the proposed compensation framework to relevant claims.

The draft decision does not recommend any substantial changes to the dispute resolution provisions.

We encourage stakeholders to make a submission and will hold a public forum on the draft determination

The Commission welcomes feedback on our draft determination and rules. Written submissions are due by 25 January 2024.

The project team will hold a virtual public forum on 11 December 2023 to discuss the key recommendations as set out in the draft determination. Stakeholders will have the opportunity to provide their views and ask questions.

The Commission intends to publish its final determination and final rule on 7 March 2024.

Background 

Over the past year there have been a number of changes to the ECGS to address security and reliability threats and better manage volatility in the system. This includes Energy Ministers providing AEMO with obligations to monitor the system, as well as intervene should this be required.