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Gas Grift: AEMC Sneaks Through Market Rules for Gas Incumbents

Opinion. Bruce Macfarlane

The Intricacies of Australian Energy Market Rule Changes

In the labyrinth of the Australian energy market, rule changes are a complex dance. They're not whimsical alterations, but rather, meticulously choreographed moves, each step echoing with the weight of careful deliberation. The Australian Energy Market Commission (AEMC), the maestro of this dance, conducts the symphony of rule changes with a steady hand, ensuring the harmony of the market's rhythm.

The Conundrum at Hand

The latest performance on the AEMC's stage is a proposed rule change that seeks to address a gnarly knot in the fabric of the energy market. The issue? Compensation for market participants following intervention by the Australian Energy Market Operator (AEMO) in gas markets. It's a thorny problem, one that has been prickling at the edges of the market's smooth functioning.

The Proposed Rule Change: A New Dance Move

The AEMC's proposed rule change is akin to a new dance move. One that promises to untangle the knot and restore the market's fluidity. The change aims to refine the compensation and dispute resolution frameworks, providing a clear and consistent arrangement for the gas sector. It's a bold step, one that could potentially redefine the choreography of the energy market.

The Anticipated Benefits: A Smoother Performance

The benefits of this rule change could be manifold. It promises to incentivise behaviour that supports system reliability, ensure the sustainability of the compensation framework, and provide fair and equitable funding arrangements for compensation payments. In essence, it's a move that could potentially enhance the performance of the energy market, making it more efficient and effective for all participants.

The Elephant in the Room: Gas Reservation

However, amidst the applause for the proposed rule change, there's an elephant in the room that needs addressing: gas reservation. While the AEMC's focus on compensation rule changes is commendable, one can't help but wonder if their attention might be better directed towards gas reservation. After all, ensuring adequate gas supply is a fundamental aspect of a well-functioning energy market.

In the grand scheme of the energy market, the AEMC's proposed rule change is one move in a complex dance. It's a step in the right direction, no doubt, but perhaps it's time for the AEMC to consider a new dance altogether, one that places a greater emphasis on gas reservation. After all, in the intricate ballet of the energy market, every move counts. Don't let the AEMC's gas grift catch you off guard. Contact Energy Action today and take control of your business energy.

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