Regulator seeks stakeholder feedback on proposed new rules for gas distributors

The Essential Services Commission has today released its draft decision on the Gas Distribution Code of Practice, which will provide a fairer and clearer framework for gas network customers as Victoria's energy system transitions to achieve legislated emissions reductions targets.

The draft decision proposes that there will be a new framework for connection obligations and connection charges. Feedback is sought on a proposal for new customers to pay upfront charges when a new gas connection is installed, bringing new gas connections in line with the current practice for electricity and water connections in Victoria.

Commission Chairperson Kate Symons says modernising Victorian gas rules is in the long-term interests of consumers.

“We are proposing to remove inefficient incentives for new gas connections, by bringing them into line with the current practice for electricity and water connections. This will support Victoria’s energy transition to net zero emissions and support customers during the transition from fossil gas to electricity.”

The proposed Gas Distribution Code of Practice is part of the commission’s ongoing process to remake existing codes into codes of practice. This will streamline regulation, remove duplication, and better align with the national regulatory framework. It will also make it easier for the commission to use its new enforcement powers to effectively enforce the rules on Victorian Gas Distributors, including through civil penalty provisions.

Commissioner Symons says the draft code was developed following extensive consultation with stakeholders including gas distributors, gas retailers, consumer protection and climate action groups, peak industry bodies, and individuals.

“We are now seeking feedback from stakeholders on the proposed Gas Distribution Code of Practice. We will consider all feedback and prepare a final decision in early 2024.”

The draft decision is available on the Engage Victoria website. It includes the proposed Gas Distribution Code of Practice, a comparison between the current code and the new draft code and proposed updates to gas distribution licences.

Feedback on the draft decision can be submitted via the Engage Victoria website up until 5pm on 21 December 2023.