Australia plans to extend its price cap on natural gas until at least mid-2025 to protect households and businesses from a rise in charges when the temporary cap expires. The temporary AUD12/GJ (US$8/GJ) price cap is set to be extended by 18 months through to 1 July 2025, with exemptions for small domestic-only suppliers and gas producers making satisfactory ACCC (Australian Competition and Consumer Commission) and court enforceable supply commitments.
The temporary price cap was first approved in December 2022 and was scheduled to last for 12 months. It was approved on new wholesale gas sales by east coast producers to ease pressure on households and small businesses hit by soaring energy costs.
The Australia government also plans to establish a code of conduct (the Gas Code) for the industry that will begin in 2024. It will include a "reasonable pricing provision" aimed at levelling the negotiating playing field between gas users and producers.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.