In March 2015, the COAG Energy Council, at the request of the Victorian Government, asked the AEMC to undertake a detailed review of the pipeline capacity, investment, planning and risk management mechanisms in the Victorian Declared Wholesale Gas Market (DWGM). In the final report, released in mid 2017, the AEMC recommended a set of incremental reforms as well as a longer-term target model.
Consultation papers
On 14 March 2019, the AEMC published a background paper and three consultation papers relating to the Victorian declared wholesale gas market. These consultation papers – on establishing a forward trading market, creating a simpler wholesale price, and making improvements to the authorised maximum daily quantity (AMDQ) regime – relate to the three areas identified for incremental reform in the AEMC’s 2017 report. The AER provided a combined submission to these three interrelated rule change proposals on 26 April 2019.
AER Submission to Victorian Declared Wholesale Gas Market Consultation Papers - 26 April 2019
Draft determinations
On 5 September 2019 the AEMC published draft rules that would: require AEMO to take into account transmission constraints that limit withdrawals in pricing schedules, simplify the mechanism market participants can use to protect against the risk of incurring congestion uplift payments, and replace the AMDQ regime with a new entry and exit capacity certificates regime. The AER provided its submission to these draft determinations on 24 October 2019.
More information
More information on the consultations can be found on the AEMC’s website by topic: forward trading market, simpler wholesale price and improvement to AMDQ regime.