Gas markets

Gas Retail Competition

On 1 July 2007, full retail competition (also known as full retail contestability or FRC), was introduced into the Queensland natural gas market. This means all Queensland natural gas customers (other than those in Roma and Dalby) are entitled to choose which retailer they purchase their natural gas from).

This coincided with the introduction of full retail competition for electricity customers in Queensland. The former Energy Competition Committee was appointed to manage all technical and regulatory issues associated with the implementation of full retail competition in electricity and natural gas.

To find out more about full retail competition, visit www.thepowertochoose.qld.gov.au, phone 1800 657 567 (free call, during business hours) or email frc@dme.qld.gov.au

Brief history

With the introduction of FRC, a gas retail market operator was established to manage the operation of the Queensland natural gas market, including the transfer of customers between retailers.  The Victorian Energy Networks Corporation (VENCorp) was appointed as Queensland's Gas Retail Market Operator (GRMO) from 1 July 2007. 

On 1 July 2009, the Australian Energy Market Operator (AEMO) assumed the functions of the Queensland GRMO.

Australian Energy Market Operator

The Queensland Government, through the Ministerial Council on Energy, recently finalised the implementation of the new AEMO.

AEMO has assumed the functions of existing gas and electricity market operators, including VENCorp and its role as Queensland's Gas Retail Market Operator (GRMO). 

The benefits of a single market operator include ongoing improvements to efficiency and competitiveness in gas and electricity markets and making sure Australians retain secure, well-managed energy markets and the lowest possible prices.

The National Gas Law can be found on the South Australian Legislation website.

The amended National Gas Rules can be found on the Australian Energy Market Commission website , while the new Queensland Retail Procedures can be found on the AEMO website.

Background to the introduction of FRC

When the Council of Australian Governments (COAG) endorsed the Natural Gas Pipelines Access Agreement in November 1997, a national regulatory framework for third party access to natural gas transmission and distribution pipelines was established. Each jurisdiction committed itself to implementing the national access regime and undertaking other reforms necessary to promote gas market competition.

As part of the Agreement's reform agenda, the Queensland Government reviewed the Gas Act 1965. The Gas Act 1965 was replaced by the Gas Supply Act 2003.

The Agreement also committed states to implement timetables for introducing gas retail competition in stages until the entire gas retail market is open to competition ('full retail contestability').

In Queensland, gas customers (mainly larger industrial customers) who are supplied directly from transmission pipelines have always been contestable, but customers who were supplied via the gas distribution networks were not contestable.

The Queensland Government took a three-tiered approach to introducing full retail contestability, with Full Retail Competition introduced on 1 July 2007.