The Australian Government is seeking to extend the Gas Supply Guarantee to help ensure electricity generators have enough gas supply during periods of peak demand.

Energy and Emissions Reduction Minister Angus Taylor has written to the Australian Energy Market Operator (AEMO) asking for AEMO to engage with the industry on guidelines to extend the term of the Guarantee beyond its current expiry date at the end of March 2020.

The Gas Supply Guarantee arose from a March 2017 agreement between the Government and the gas industry to help underpin the reliability of the National Electricity Market in the face of potential gas shortages.

“The Morrison Government is continuing to support the affordability and reliability of gas supply in Australia. The Gas Supply Guarantee is another example of cooperation between the government, AEMO and all sectors of the gas market,” Minister Taylor said.

“The Guarantee has helped industry to plan ahead for these peak demand periods. While there have been significant improvements to the market since the Guarantee was agreed three years ago, the extension will help to support system reliability and keep the lights on.” 

Minister Taylor said at the next Council of Australian Governments (COAG) Energy Council, he would recommend a review of the Guarantee mechanism be undertaken by the Australian Energy Market Commission (AEMC) to ensure it remains fit for purpose into the future.

Media contact: Minister Taylor's office 02 6277 7120