AEMC recommends rules for hydrogen and renewable gases following review

Recommended rules that will help pave the way for Australia’s hydrogen and renewable gas industry and support our emissions reduction plans have been sent to Energy Ministers for approval

Gas pipes steel

The Australian Energy Market Commission’s (AEMC) recommended rules enable Energy Ministers to change the national gas and retail regulatory frameworks so that low-level hydrogen gas blends and renewable gases can be safely supplied through existing distribution pipelines to appliances in homes and businesses.

Under the Review’s terms of reference, the AEMC was required to consult upon the proposed rules contained in the final report. Having done this, we are now publishing the recommended rules.

The Commission’s key final recommendations (as detailed in the final report) and recommended final rules:

  • Enable access to pipelines and support investment by extending the economic regulatory framework.
  • Support competition through improvements to the ring fencing framework.
  • Extend the market transparency mechanisms to enable informed and efficient decision making.
  • Streamline operational arrangements for the STTM.
  • Adapt the Victorian DWGM (to work in conjunction with the DWGM distribution connected facilities rule change).
  • Allow new services and commodities in the retail gas markets.
  • Enable consumers to be informed about a change in the type of gas supplied.
  • Retain the draft regulatory sandbox rules in their current form to enable other covered gases.

AEMC Chair Anna Collyer says these rules represent critical steps towards the development of a national hydrogen and renewable gas industry.

"We want to ensure those investors can confidently make informed decisions that will in turn grow the sector, paving the way for a decarbonised economy.

“We can’t know exactly what shape a net zero power system will take, but we can define the problems we need to solve to get there and create space for innovation to find the solutions.”

In line with the terms of reference, once the AEMC provides Energy Ministers with recommended rules for their approval, the legislation and rules would then be made.

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