AEMC Proposes Gas Price Hikes Amid Victoria Gas Ban

The Australian Energy Market Commission has proposed a draft rule that would allow gas networks to recover capital costs from current customers more rapidly. This move is expected to trigger price increases for existing gas users at a time when east coast residential and small commercial gas demand is forecast to drop by 79% over the next 20 years due to electrification.

The proposal faces opposition from the Australian Energy Regulator and consumer advocacy groups. Energy Consumers Australia argues the rule unfairly shifts financial risk from network investors to low-income households and small businesses.

Simultaneously, Victoria will implement a statewide ban on domestic gas in new builds starting January 1, 2027. The Australian Gas Infrastructure Group has lobbied to overturn the ban, claiming the policy will increase annual household costs by $100. While Premier Ben Carroll has resisted these efforts, Liberal leader Jess Wilson has pledged to reverse the ban if elected.