Integrated Gas Market Reforms Critical to Reducing Australia’s Cost if Living Pressures and Preserving Australia’s Manufacturing Capability
Emily Wood | June 30, 2026
Large commercial and industrial energy users reliant on gas to create essential goods for the Australian community are calling on the Federal Government to address core issues in gas markets to ensure jobs and critical industries can remain competitive in the Australian market, said Energy Users’ Association of Australia (EUAA) in its submission to the Gas Market Review.
“Gas is a critical fuel for many essential goods and services in Australia and without a workably competitive gas market that delivers affordable gas, every single Australian will end up worse off,” said EUAA Chief Executive Officer, Mr Andrew Richards.
“A domestic gas reservation scheme that delivers the lowest cost molecules to market must be a central objective of government policy if we are to remain globally competitive and take pressure of household bills. This must be complimented by improved transparency, increased infrastructure investment in pipelines and storage, and a strong governance framework to ensure our gas markets work in the best interests of all consumers.”
EUAA has made a detailed submission to the Gas Market Review which is considering how to resolve fundamental misalignment in market settings which has already led to demand destruction and been a significant driver of the cost of living crisis impacting many Australian families. In its submission, the EUAA outlines key requirements that it believes will resolve these issues once and for all:
- Affordability is the central objective. The DGRS must de‑link domestic gas prices from volatile LNG netback pricing and deliver domestic gas below $10/GJ with many members arguing that domestic prices should be closer to Tier‑1 production costs (~$6/GJ). Long-term gas at or above the previous $12/GJ cap is considered too high and misaligned with Australia’s competitive advantage.
- Reservation must deliver real gas, not paper compliance. Members insist on a must‑sell obligation, not merely “make available”, due to past instances where producers offered gas at $40–$60/GJ with unworkable terms—offers described as disingenuous and validated by ACCC findings. “Members have reported… gas was offered… at prices that could not be accepted by the buyer… These offers were seen as disingenuous.”
- Support for a 20% reservation target, with transparency on modelling. Many members believe the target should be in the range of 15–25%, reviewed annually, but affordability must be guaranteed regardless of the percentage. Members would also appreciate gaining a clearer understanding of the modelling that underpins the reservation percentage.
- Strong governance and transparency are essential. EUAA argues that opaque Ministerial discretion has undermined trust in past mechanisms (Code of Conduct, ADGSM, HoA). They call for the AER to lead a transparent, rules‑based compliance framework, with public reporting of DSO plans, contract offers, and market data. In order to do this, the AER must be appropriately resourced as soon as possible.
- Compliance flexibility must not become avoidance. Limited flexibility is acceptable to manage demand fluctuations, but EUAA strongly opposes exemptions, indefinite deferrals, or WA‑style “whole‑of‑life” obligations that allow obligations to be “kicked down the road”.
- Infrastructure investment is critical. Pipeline and storage constraints must not justify exemptions; swaps, banking, and third‑party contracting provide alternative compliance pathways. We believe the DGRS will deliver long-term certainty and provide a clear path for investment in not only new production but infrastructure to support transport and storage capacity.
- Integrated market reforms are required. EUAA supports enhanced transparency, mandatory price‑range offers, improved Gas Bulletin Board reporting, and conduct obligations that eliminate silent auctions and information asymmetry.
- Transition measures must remain until the DGRS is proven. ADGSM, the Code, and HoA should not be dismantled prematurely. EUAA members unanimously oppose LNG import terminals, which would entrench import‑parity pricing.
“The position of EUAA members is clear, there is an urgent need to fundamentally reform the domestic gas market so as to avoid further demand destruction and the hollowing out of Australia’s sovereign manufacturing capacity,” added Mr Richards.
The Energy Users’ Association of Australia (EUAA) is the peak body representing Australian commercial and industrial energy users. Our members are the engine room of the Australian economy, producing many of the products that households and business use every day including bricks, glass, steel, aluminium, paper, food and beverages. Combined our members employ over 1 million Australians, pay billions in energy bills every year and in many cases are exposed to the fluctuations and challenges of international trade.
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Media Contact: Emily Wood 0421 042 121