Australian electricity and gas markets – October 2025 Update

Highlights for September 2025

In this update, we take a look at the latest rule changes and market updates published in September 2025, which affect 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

Final Rule – Inter-regional settlements residue arrangements for transmission loops

On 25 September 2025, the Australian Energy Market Commission (AEMC) made a final determination and more preferable final rule that provides a new approach for allocating inter-regional settlements residue (IRSR) in transmission loops. This rule change comes in response to Project EnergyConnect Stage 2 which will create a transmission loop in the National Electricity Market (NEM).

The rule change provides an approach called 'netting off'. This involves calculating the net IRSR between the arms of a transmission loop. The IRSR will be allocated based on whether the net IRSR is positive or negative.

The final rule:

• allocates positive net IRSR to settlements residue distribution (SRD) unit holders;
• allows negative net IRSR to be recovered from Co-ordinating Network Service Providers (CNSPs);
• allocates settlements residue auction proceeds and any unsold positive IRSR to the CNSP;
• requires the Australian Energy Market Operator (AEMO) to take reasonable endeavours to auction new SRD units for Project EnergyConnect before loop operation;
• creates new information publication obligations for AEMO; and
• does not change IRSR allocation for radial interconnectors.

The netting off approach will commence between 1 October 2026 and 2 November 2026.

Draft Rule – Framework to enable access to real-time data from smart meters

On 11 September 2025, the AEMC made a draft determination and draft electricity rule that will enable consumers to request real-time data from smart meters. The AEMC also made a draft retail rule which is outlined below.

The draft electricity rule:

• defines 'real-time data';
• requires AEMO to set procedures for real-time data by July 2026; and
• updates the minimum service specifications for meters installed from 2028 to facilitate real-time data access.

The AEMC seeks feedback on its draft determination by 23 October 2025.

National Energy Retail Rules

Final Rule - Improving the ability to switch to a better offer

On 11 September 2025, the AEMC made a final rule and final determination which requires retailers to include a 'better offer message' when sending a bill to customers. The message would prompt customers to compare prices through the Energy Made Easy website.

The final rule requires:

• the Australian Energy Regulator (AER) to update its billing guideline by 30 September 2026; and
• retailers to comply with the AER's updated billing guideline from 30 December 2026.

Despite this, the AER's updated billing guideline may provide a different date by which retailers are required to comply.

Final Rule – Improving the application of concessions to bills

On 25 September 2025, the AEMC made a more preferrable final rule and final determination that imposes new obligations on retailers when a consumer enters into an energy plan or switches contracts.

The final rule requires retailers to:

• provide consumers with information about concession, rebate and relief schemes (relevant to the consumer's jurisdiction); and
• ask consumers whether they are eligible for these schemes.

The final rule takes effect on 1 July 2026.

Draft Rule – Framework to enable access to real-time data from smart meters

On 11 September 2025, the AEMC published a draft determination and draft retail rule which introduces new powers and responsibilities for retailers regarding smart meters.

The draft retail rule:

• restricts retailers from charging customers to access real-time data if the customer has a new smart meter that meets the minimum specifications in the draft electricity rule (see above);
• allows retailers to revoke access to smart meter data in domestic violence situations; and
• allows retailers to direct metering coordinators to facilitate real-time data access.

The AEMC seeks feedback on its draft determination by 23 October 2025.

National Gas Rules

Draft Rule – updating the regulatory framework for gas connections

On 18 September 2025, the AEMC published a draft determination and draft rule that updates the distributor charges for a newly connecting retail customer. The intent is to allow distributors to charge customers an upfront amount that reflects connection costs.

The draft rule would:

• amend the test used to determine connection charges;
• provide an exemption to the new test for customers on certain pipelines in NSW, ACT, South Australia and Queensland; and
• require distributors to update their model standing offers for connections and submit their updated offers to the AER for approval.

The AEMC is seeking stakeholder feedback by 30 October 2025.

Other Updates

Reliability Panel – draft determination for Review of the System Restart Standard

On 4 September 2025, the AEMC Reliability Panel published a draft determination for its Review of the System Restart Standard.

The revised draft standard:

• introduces new targets for system restoration and System Restart Ancillary Services (SRAS) reliability;
• requires AEMO to consider advice from the jurisdictional system security coordinator (JSSC) on SRAS locations; and
• requires AEMO to report to the AEMC Reliability Panel how it has considered JSSC advice on SRAS locations;

The Panel proposes the draft standard to take effect on 1 July 2027.

Consultation Papers

The AEMC are requesting consultation on its ECGS Supplier of last resort mechanism consultation paper. Submissions close on 30 October 2025.

Authors: Dan Brown, Partner; Dale Gill, Partner; Paul Newman, Consultant; Aylin Cunsolo, Partner; Ethan Low, Graduate; Isabella Skene, Paralegal.