Energy Consumers Australia (ECA)'s submission (PDF, 493.44KB) to the Australian Energy Market Commission's directions paper on Gas Networks in Transition urges the Commission to make changes to its proposed directions to better protect consumers as gas demand declines. The direction paper follows the rule change requests proposed by ECA and the Justice and Equity Centre.
As more households and small businesses choose to electrify, overall demand for reticulated gas is declining. The rules governing gas networks must adapt to this shift. This review is a critical opportunity to ensure the framework remains fair, efficient and fit for purpose in a contracting market.
While we welcome the Commission’s acknowledgement that the current rules need changing, our submission highlights that the proposed directions fall short of what is required to protect consumers.
By leaning too heavily towards guaranteeing network cost recovery, the proposed directions would risk placing a disproportionate share of the transition costs onto everyday households and small businesses, rather than ensuring a fair balance of risk between consumers and network investors.
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