AGL submission on proposed gas Supplier of Last Resort mechanism

AGL has responded to the Australian Energy Market Commission’s consultation on introducing a Supplier of Last Resort (SoLR) mechanism for the east coast gas system.

While we acknowledge the intent to safeguard against gas shortfall emergencies, our submission raises concerns that the proposed design could create moral hazard, weaken contracting incentives, and increase market instability.

We recommend focusing on market-led solutions and demand response measures rather than interventions that risk distorting market signals. Clear guidance, transparency, and predictability are essential if any SoLR framework is to be adopted.

Read the full submission (PDF).