Energy Networks Australia (ENA) says claims that the Australian Energy Market Commission’s (AEMC) proposed gas network reforms amount to a ‘blank cheque’ for monopolies do not fairly reflect the substance of the proposed reforms. 

ENA says that while the draft rule still needs to be refined, it adds safeguards rather than removing them, and requires networks to publish long-term outlooks, so customers and the regulator can see risks before they arrive.  

Any reform will still see the independent Australian Energy Regulator (AER) assess every network’s approach and the regulator will be able to override it where that better serves consumers.   

ENA Chief Operating Officer Dominic Adams said the aim is simple: to share costs fairly, so customers who remain on the gas network in the future, including those who may have the least ability to switch, aren’t left paying a disproportionate share. 

“Millions of Australian households and businesses rely on gas and deserve safe, reliable supply for as long as they need it,” Mr Adams says. 

“We support the direction of the AEMC’s reforms. Longer-term planning and flexible cost recovery are smart, practical ways to keep gas prices fair as usage shifts over time.” 

However, ENA is calling on the AEMC to take the time needed to consult further and refine the draft so permanent changes to the value of network assets are only made as a last resort, based on real-world outcomes rather than uncertain forecasts or unrealistic assumptions that every customer can easily switch. 

“The future of gas networks will differ by state and region, driven by customer needs and government policy. Regulation should allow for those different futures and support customers and government policy, not get ahead of them. 

“We’ve put forward practical alternatives in our submission and will keep working constructively with the AEMC and consumer groups to land these reforms.” 

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*Energy Networks Australia is the national industry body representing Australia’s electricity transmission and distribution and gas distribution networks. Our members provide more than 16 million electricity and gas connections to almost every home and business across Australia.  

Media enquiries: Kristina Zarich | news@energynetworks.com.au | 0499 396 217