Australian electricity and gas markets – April 2025 Update

In our April update, we take a look at the latest rule changes and market updates affecting participants in the Australian electricity and gas markets.

What you need to do

• Stakeholders should note the market updates below, and note any impacts on their compliance obligations.

National Electricity Rules

Draft Rules

The Australian Energy Market Commission (AEMC) has made a more preferable draft rule to increase optionality and flexibility for participants to provide credit support in the National Electricity Market (NEM). Under the draft rule, participants would be allowed to provide:

• cash as credit support up to a limit of $5 million for each participant;
• surety bonds as credit support; and
• credit support from a broader pool of credit support providers.

This determination is in response to a rule change request from Delta Electricity (Delta) to allow the Australian Energy Market Operator (AEMO) to accept cash as credit support.

The AEMC are seeking stakeholder feedback by 15 May 2025.

Rule change proposals

On 3 April 2025, the AEMC initiated a minor rule change proposal to make minor corrections and non-material changes to the National Electricity Rules. These changes aim to increase the quality of the NER and make them clearer for stakeholders.

Submissions to the rule change proposal close on 1 May 2025. The AEMC intend to progress this rule change through the expedited process. Under an expedited rule making process, a final rule determination must be made within eight weeks of the initiation process. The AEMC will assess the draft rules under the expedited process if it does not receive a written request and substantive reasons not to do so from any person by 17 April 2025.

Consultation Papers

The AEMC is seeking feedback on the:

• ECGS Projected Assessment of System Adequacy consultation paper by 8 May 2025.
• Stage 1 contingent project application from ElectraNet for the Mid North South Australia Renewable Energy Zone (REZ) Expansion project by 2 May 2025.

National Energy Retail Rules

The minor rule change proposal includes minor corrections and non-material changes to the National Energy Retail Rules.

National Gas Rules

Draft Decisions

On 17 April 2025, the AER published its draft decision to revoke an exemption granted to APT Pipelines NT Pty Ltd (APTNT) from ring-fencing requirements under section 140 of the National Gas Law (NGL). As APTNT no longer requires an exemption from section 140 of the NGL, there are no associated costs of compliance with the provision and the AER considers that it no longer meets the exemption criterion. The revocation is set to take effect on the date of the final decision.

Rule change proposals

The minor rule change proposal includes minor corrections and non-material changes to the National Gas Rules.

Other Updates

Under the National Energy Laws, the AEMC must prepare and maintain a targets statement, stating the targets set by participating jurisdictions:

• for reducing Australia's greenhouse gas emissions; or
• that are likely to contribute to reducing Australia's greenhouse gas emissions.

The Australian Energy Regulator (AER):

• published the updated Emission target statement under the national energy laws;
• published its second wholesale gas reserves price assumptions report;
• released a report prepared by the University of Wollongong, the Consumer Benefits of Voltage Management Project Report. The report examines the impacts of distribution network service providers (DNSPs) maintaining a supply voltage magnitude above the nominal value of 230V in low voltage networks, and considers the potential consumer benefits if the supply voltage magnitude is lowered to 230V;
• published an application from Agora Retail Pty Limited for a gas retailer authorisation under the National Energy Retail Law. Submissions from interested stakeholders are due by 20 May 2025;
• published the 2025-26 tariff variation notices for gas networks. The AER will undertake compliance checks of the tariff variation notices submitted by the South Australian, Victorian, Northern Territory and Queensland gas network businesses. The compliance checks will ensure consistency against each network business' five-year access arrangement determination.
• is seeking submissions on Ergon Energy's application to renew its waiver from clauses 3.1(b), 4.2.1, 4.2.2, 4.2.3 and 4.2.4 of the Ring-fencing guideline (electricity distribution). Submissions are due by 12 May 2025.

Public Forums

In November 2024, the Australian Government announced a review of the National Electricity Market (NEM) wholesale market settings by an independent expert panel. As part of their commitment to open and collaborative consultation throughout the NEM review, the expert panel will host public forums in May 2025.

The forums will allow the general public and other stakeholders to hear from the panel about the review's progress. There will also be the opportunity to share opinions and feedback on key topics.

Registrations close 2 business days before each forum and further information can be found here.

Authors: Dan Brown, Partner; Dale Gill, Partner; Paul Newman, Consultant; Savannah Tindiglia, Graduate and Isabella Skene, Paralegal.