Pipeline capacity trading reforms, introduced in March 2019, have improved access to pipeline capacity for wholesale gas customers. This report reviews the implementation of these reforms, including the performance of the two new markets: the Capacity Trading Platform and the Day Ahead Auction.
The Day Ahead Auction has been a particular success, allowing participants to respond flexibly to changing conditions and arbitrage between markets. It has also supported increased trade in the east coast gas markets. The Capacity Trading Platform however, has only seen one trade to date.
In addition, this report discusses how over the past two years the AER has actively refined its surveillance tools and surveyed participants’ compliance with the reforms’ new obligations. It also proposes some additional work on the horizon to address some identified issues.