A new voluntary Code of Conduct for the gas industry has been finalised and received by the Australian Government.
Led by the Australian Petroleum Production & Exploration Association (APPEA), representing suppliers and gas consumers, as well as the Australian Industry Group (AIG), the code ensures the market functions justly.
It will also provide users with the greatest deals through meeting the best interests of all participants.
The code will apply to the negotiation of gas supply agreements in the east coast domestic market.
It will provide standards to govern the conduct of gas suppliers, pricing principles, increased transparency, an equitable dispute resolution process, and a regular code review process.
The code also includes the promotion of good faith dealings between suppliers and consumers.
APPEA chief executive Andrew McConville said the development of the code involved 12 months of extensive collaborations between gas users and gas suppliers.
“We were able to accommodate vast majority of requests from customers while working within the Australian Government’s parameters for the code which included that the code should not regulate prices or contain anti-competitive provisions,” McConville said.
“We have also maintained a consistent approach with other voluntary codes and – critically – ensuring the efficient operation of markets that will allow more gas to be development for the very supply customers are seeking.”
Minister for Industry, Energy and Emissions Reduction Angus Taylor welcomed the agreement, thanking suppliers and users for helping to develop the code.
“We know that a secure supply of gas is crucial to supporting jobs in Australia’s important energy intensive industries that are the lifeblood of our economy and our regions,” Taylor said.
“This code will help to level the playing field in the negotiation of gas supply agreements.”
Taylor said the code represents a vital industry-led milestone under the gas-fired recovery.
“The development and implementation of the code is a key step in ensuring affordability and reliability for Australian gas users,” he said.
“We expect all participants to step-up and continue to behave in good faith throughout the life of the code.”
The code will start on June 1, 2022.
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