AGL Response to DCCEEW consultation on the Gas Market Review

AGL Energy (AGL) welcomes the opportunity to respond to the Australian Government Department of Climate Change, Energy, the Environment & Water (DCCEEW) on the Gas Market Review Report.

Key Points

AGL Energy (AGL) supports the direction of reform set out in the Gas Market Review and considers that durable improvements in gas affordability, reliability and security require a single, coherent regulatory framework that restores investment confidence and enables new supply.

• Develop a well designed, prospective domestic gas reservation scheme (DGRS) as the central, durable mechanism to support domestic supply and affordability, while reducing exposure of the east coast market to international price volatility and minimising the need for further interventions in order to allow for a stable investment and contracting. 
• Repeal the ADGSM, the $12/GJ reasonable price mechanism, the CME framework and the Gas Market Code EOI process, as these measures have distorted commercial behaviour, undermined long term contracting and discouraged investment in new supply and infrastructure. 
• Design the DGRS to actively support investment and new supply, recognising that reservation alone does not create gas. The framework must encourage timely development of production, transport and storage capacity, and provide clear, stable signals for longterm capital allocation. 
• Embed transparency through independent verification of gas reserves and gas available for sale, supporting confidence in compliance while avoiding rigid price or quantity controls that risk further undermining market confidence.

Read the full submission here.