PIAC responded to the Australian Energy Market Commission’s review of the Gas Supply Guarantee (GSG). The GSG was established in 2017, following the South Australian system black event as a means to prevent gas supply shortfalls during peaks. It has never been triggered, however, is used by AEMO as part of its summer readiness planning.
PIAC contends changes to the energy market, system regulatory landscape have made a gas supply shortfall much less likely and suggest there is unlikely to be a critical need for the GSG in future.
We recognise the GSG may provide benefits in forecasting and planning, however, caution the AEMC against investing significant further resources into processes concerning it.