AGL's submission on the Proposed Extension of AEMO’s East Coast Gas System Reliability and Supply Adequacy Functions

AGL welcomes the opportunity to comment on the proposed extension of AEMO’s East Coast Gas System (ECGS) reliability and supply adequacy functions. We recognise the Government’s objective to address projected structural supply shortfalls and to ensure reliable gas supply for households, industry and gas-powered generation, particularly where investment may not occur in time without intervention.

AGL agrees that the central challenge identified in the Consultation Paper is the growing difficulty in securing contracts of sufficient term and scale to provide proponents with the long-term revenue certainty required to proceed with investment. Heightened uncertainty around long-term demand, policy and regulatory settings has contributed to shorter-dated contracting, even where projects are otherwise commercially viable.

AGL supports the principles Ministers have articulated to guide any extension of AEMO’s powers—that any intervention should operate strictly as a last resort, preserve incentives for market-led contracting and investment, minimise costs to consumers, and be subject to strong Ministerial oversight and legislative guardrails. These principles are essential to maintaining confidence in the gas market and supporting efficient private investment.

Read the full submission (PDF).