Gas markets
Last updated: 10 Feb 2011
Competition in the NSW Retail Gas Market
The NSW retail gas market is competitive, giving households and businesses the option to choose their gas retailer.
To support retail competition, the NSW Government has been a key driver of improvements to the NSW gas market structure. A key feature of reform in the gas sector has been the introduction of an open access regime for third parties using the gas transmission and distribution network. This has enabled new suppliers to enter the market.
Download more information:
- Gas Retail Market Business Rules to Support Retail Competition in Gas (PDF 1.1 MB)
- Gas Network Code for Full Retail Competition (PDF 118 KB)
- Market Operations Rules (NSW Gas Retail Market Business System Interfaces) (PDF 96 KB)
NSW Gas Supply Continuity Scheme
The NSW Gas Supply Continuity Scheme ceased operation on commencement of the Short Term Trading Market in NSW on 1 September 2010.
Background information on the origins and purpose of the Gas Supply Continuity Scheme is provided below.
Following the Natural Gas Supply Load Shedding Event of 22-24 June 2007, the NSW Government announced the introduction of new laws designed to ensure a more reliable gas supply to residential and business customers.
The purpose of the Scheme was to ensure that the gas demand and supply imbalances that normally occur within the NSW natural gas system do not become large enough to threaten the operation of the system.
Under the Scheme, Market Operation Rules for NSW Gas Supply Continuity Scheme ('the Rules') applied to the owners and operators of natural gas transmission pipelines and shippers of natural gas on those pipelines as well as natural gas distributors and retailers.
Under the Rules, the Scheme Operator, Australian Energy Market Operator, conducted a tender process that allowed producers and shippers of natural gas who have access to spare production capacity to be paid for the delivery of that gas into a pipeline to offset a critical imbalance.
In addition, users of natural gas were able to be paid to reduce their demand allowing the critical imbalances to be rectified through a demand side management mechanism.
To provide the appropriate incentives to shippers of natural gas to keep pipeline imbalances in the operational range, the costs of rectifying any critical imbalances via the tender process were back charged to the shippers by the Scheme Operator on a pro rata basis.
Also under the Rules, a Consultative Committee consisting of representatives of those organisations covered by the Scheme, as well as a gas producer and a major gas user was established to oversee the Scheme.
The NSW Government revoked the Market Operations Rules (NSW Gas Supply Continuity Scheme) 2008 that establish the basis for the Scheme's operation on commencement of the Short Term Trading Market. For further information on this decision visit:
See a copy of the notice revoking the Scheme rules (66kb PDF).