Information Paper: Energy Council approval of capacity trading reform package legal and regulatory instruments
On 19 March 2018, the GMRG released the draft legal and regulatory instruments required to implement the capacity trading reform package for consultation and invited stakeholders to provide feedback by Friday 27 April 2018. The consultation paper and submissions received are available on the Capacity Trading Reform Package Legal and Regulatory Framework – Consultation paper page.
Having considered the feedback provided by stakeholders, the GMRG developed the final legal and regulatory instruments for the COAG Energy Council’s consideration and approval. The final legal and regulatory instruments were agreed by Energy Ministers out-of-session in late June 2018.
An information paper that summarises the final design of the capacity trading reforms, including the key changes that were made in response to stakeholder feedback, is provided below.
The changes to the National Gas Law that are required to give effect to the reform package are expected to be tabled in the South Australian Parliament in the coming weeks. Following the proclamation of these changes, the required amendments to the Regulations and National Gas Rules, and the initial Code will be made.
With regard to the application of the reforms in the Northern Territory, please see the Bulletin published by the Senior Committee of Officials on the COAG Energy Council website.
The capacity trading reform package was originally recommended by the Australian Energy Market Commission (AEMC) in its Eastern Australian Wholesale Gas Market and Pipelines Framework Review and endorsed by the COAG Energy Council at its August 2016 meeting. In the latter half of 2016 the GMRG was accorded responsibility for leading the design and development of this reform package.
The GMRG’s final design recommendations on the capacity trading reform package were endorsed by the Energy Council in November 2017 / January 2018. The Energy Council agreed at its 24 November 2017 meeting, that the capacity trading reform package should be implemented by 1 March 2019 and the harmonisation of gas day start times and nomination cut-off times should occur by 1 October 2019.