AER examines gas pipelines, price regulations
The Australian Energy Regulator (AER) released the stakeholder informational paper examining the factors causing the downward pressure on the gas demand on the east coast.
The Regulating gas pipeline under certainty report views options for managing the potential pricing risks for consumers and acts as a catalyst for industry and stakeholder engagement to understand the regulations and uphold peace of change.
“It’s a timely information paper as the decarbonisation of Australia’s energy market ramps up, stranded asset risk is looming as the biggest threat to the gas industry,” said AER Chair Clare Savage.
The paper examines factors that appear likely to decrease demand for natural gas in both the medium and long term. The identified factors include possible government decarbonisation policies, increased competitiveness of electricity as a gas substitute, improvements in energy efficiency and increased renewable energy investment.
Stakeholders are encouraged to consider both the analysis and issues outlined and provide their views in the AER’s access arrangement review processes.