Gas Market Parameter Review 2018

Market STTM
StageFinal Report
ConvenorAEMO Gas
Accepting submissions?No

In accordance with rule 492 of the National Gas Rules, the Australian Energy Market Operator (AEMO) is conducting a review of market parameters in the Short Term Trading Market (STTM). AEMO is required to use the extended consultative procedure set out in rule 9A of the National Gas Rules.

While there is no mandated review of the market parameters in the Declared Wholesale Gas Market (DWGM), AEMO is taking the opportunity to review the DWGM market parameters in conjunction with the STTM parameter review.

The parameters being reviewed are:




Market Price Cap (STTM) /


$400 per GJ

$800 per GJ

Minimum Market Price

$0 per GJ

$0 per GJ

Administered Price Cap

$40 per GJ

$40 per GJ

Cumulative Price Threshold (CPT)

110% of Market Price Cap

$440 per GJ

$1,800 per GJ

CPT Horizon (STTM)

Cumulative Price Period (DWGM)

7 days

35 Scheduling Intervals

(7 days)


AEMO has appointed a consultant (Market Reform Pty Ltd) to model and make recommendations as to the values of the following parameters in both the STTM and DWGM:

  • Market Price Cap / VoLL
  • Administered Price Cap
  • Cumulative Price Thresholds

AEMO will review the values of the following parameters in both the STTM and DWGM:

  • Minimum Market Price
  • CPT Horizon / Cumulative Price Period

Should AEMO’s final report recommend changes to any market parameter, AEMO will initiate an appropriate regulatory change process to implement the new parameters with effect from 1 July 2020. Under rule 492(3) of the National Gas Rules, changes to the relevant parameter may come into effect from 1 July 2019 where assumptions on which the current parameter values were based have been shown to be materially incorrect.

Review Timetable




June 2017 Gas Wholesale Consultative Forum (GWCF)

GWCF Workshop

3 November 2017

Consultation Paper published

8 December 2017

Submissions on Consultation Paper

COB 24 January 2018

Presentation on modelling results

February 2018 GWCF (Tue 13 February 2018)

Draft Report published

9 March 2018 (revised)

Submissions on Draft Report

COB 26 March 2018 (revised)

Final Report no later than 30 April 2018


Relevant papers from the June GWCF were:


Presentations to the GWCF workshop were:


Submissions on the Consultation paper are invited from consulted parties by no later than COB Wednesday 24 January 2018 to Consulted parties should use the submission form above.

Gas Market Parameter Review Workshop – February 2018

Submissions received

Submissions to Consultation
Submission to the Workshop
Summary of Submissions

Draft Report

Details of Draft Report
Submissions received to Draft Report
Summary of Submissions

Final Report

Details of Final Report


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