"Around one in ten Australian households with mains gas say they plan to cancel their supply within the next two years."
As gas demand continues to fall, the rules governing how new connections are priced need to keep pace with this change.
Energy Consumers Australia (ECA) has made a submission to the Australian Energy Market Commission (AEMC) on its Updating the Regulatory Framework for Gas Connections draft determination and draft rule. The proposed changes modernise the way connection charges are set to ensure households and small businesses are not left paying for network investments that primarily benefit others.
ECA supports the AEMC’s draft rule, which replaces the outdated Net Present Value test with clear, upfront, cost-reflective charging. This reform will ensure that those who choose to connect to the gas network pay the prudent and efficient costs of doing so, rather than shifting risks to existing consumers.
Our submission also calls for stronger AER guidance, consistent cost-allocation methods, and greater transparency so that connection policies work fairly across all jurisdictions. Together, these measures will deliver clearer pricing, reduce hidden cross-subsidies, and ensure the costs of transition are shared equitably as the energy system evolves.
