Enhanced information for gas pipeline capacity trading

by Energy Action | Oct 12, 2015
The Australian Energy Market Commission has made a draft rule which would improve the information provided to the east coast gas market via the Natural Gas Services Bulletin Board.

The Australian Energy Market Commission has made a draft rule which would improve the information provided to the east coast gas market via the Natural Gas Services Bulletin Board.

The draft determination by the Australian Energy Market Commission (AEMC) follows from a rule change request submitted by the Council of Australian Governments’ (COAG) Energy Council and would amend the relevant provisions in the National Gas Rules to require the following additional information to be reported by gas market participants

The AEMC considers that the additional information will increase market transparency, providing stakeholders with a better understanding of gas market supply and demand conditions.

The changes are likely to reduce search and transaction costs, thereby promoting pipeline and storage capacity trading. This should lead to more efficient utilisation of and investment in gas infrastructure, reducing costs over the longer term to the benefit of gas consumers.

The draft rule is also likely to make it easier for new participants to enter the market. To the extent that new entry occurs, consumers would be expected to benefit from greater competition in the use and provision of gas services.

Through these benefits, the draft rule is likely to contribute to the long term interests of consumers by promoting more efficient investment in and use of gas services. The AEMC believes that, over time, the value derived from a more transparent gas market is expected to outweigh the mostly short term costs of this information being provided.

The AEMC’s work on this rule change request has been conducted in coordination with the ongoing East Coast Wholesale Gas Market and Pipeline Frameworks Review.

Stakeholders are invited to make written submissions in response to the draft rule determination, and the draft rule, by no later than 12 November 2015.

The Bulletin Board is an information website operated by the Australian Energy Market Operator. It provides gas system and market information to facilitate trade in natural gas and a market for natural gas services, and assist in emergency management.

The operators of transmission pipelines, storage facilities and production facilities are required to provide certain information for publication on the Bulletin Board.

The draft rule responds to concerns that the information currently provided is inadequate to support efficient decision making by market participants and other stakeholders in an evolving market where gas and pipeline capacity are more actively traded.

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