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Governments Urged to Share Costs of Gas Network Death Spiral, as Rule Maker Lays Down the Law

The Australian Energy Market Commission (AEMC) has finalized rules that require customers who permanently abolish their gas connections to pay a cost‑reflective fee, ending state caps that previously spread removal costs across remaining users. Distributors will also be mandated to provide clear online guidance and model costs for disconnection. The change arrives as residential and commercial gas demand on the east coast is projected to fall about 80% over the next two decades, prompting calls for governments to fund subsidies for low‑income households. The framework sets guardrails for pricing and gives governments a platform to plan gas network de‑commissioning.