Design of Standardisation Reforms, Capacity Trading Platform and Reporting Framework - Final Recommendations
On Friday 24 November 2017, the COAG Energy Council (Council) agreed to the Gas Market Reform Group’s (GMRG) final recommendations on the design of the standardisation reforms, capacity trading platform and reporting framework for secondary trades. Ministers agreed that the full package of reforms would commence in March 2019.
The GMRG’s recommendations follow extensive stakeholder consultation over the last nine months. Feedback on the design of the reform was provided by a range of gas producers, retailers, gas users, pipeline service providers, the Australian Competition and Consumer Commission, Australian Energy Market Operator, the Australian Energy Market Commission and the Australian Energy Regulator. The design recommendations were also informed by advice from the GMRG’s legal advisor, Johnson Winter & Slattery and economic consultant, NERA Economic Consulting.
The GMRG intends to provide the Energy Council with its final recommendations on the design of the day-ahead auction in December for an out-of-session decision. If the Energy Council endorses the recommendations made at this time, then the GMRG and AEMO will commence work on implementing the reform package.
A summary of the GMRG’s final recommendations and the feedback provided by stakeholders is provided below.