Energy Minister Chris Bowen launches major review of gas market rules amid energy grid concerns

Sky News AU

30-06-2025

Energy Minister Chris Bowen has launched a comprehensive review of gas market regulations in a bid to shore up long-term energy security and affordability.
The review comes after Mr Bowen's repeated claims that 'renewable energy is the cheapest form of energy'.
As part of the review, the government will consult with industry, stakeholders and the public on how to regulate the gas market.
There have been sweeping efforts across all levels of government in recent months to review the role of gas in the power grid amid concerns about reliability and cost.
The Victorian government recently backed down on its contentious gas bans following alarm from consumers and industry stakeholders.
The NSW government also faced calls to intervene in Sydney Mayor Clover Moore's ban on gas appliances in new buildings.
Mr Bowen said his review will ensure the gas market will be "fit for purpose" as the country accelerates toward an 82 per cent renewable energy grid.
'Gas has an important role to play in our energy system as we transition towards 82 per cent renewables,' Mr Bowen said in a statement on Monday.
'Unlike coal, gas power generators can be turned on and off in a couple of minutes – providing the ultimate backstop in our energy grid.'
'It's critical that we use this review get the settings right in our gas market, ensuring we are securing affordable Australian gas for Australian use.'
The goal will be to streamline regulatory mechanisms to support long-term investment, affordability, and domestic supply of gas.
The Australian Competition and Consumer Commission (ACCC) released its latest Gas Inquiry report on Monday, raising concerns about the future of gas.
The ACCC confirmed that while short-term supply was sufficient, the long-term outlook remains precarious without further investment.
The report echoes years of warnings from the ACCC and the Australian Energy Market Operator about looming supply shortfalls.
In response to those warnings, the Albanese government said it has secured 644 petajoules of enforceable domestic gas supply since 2023.
Environment Minister Murray Watt recently gave the green light to Woodside's North West Shelf gas project extension until 2070 in order to firm up gas supply.
The approval was made under the Environment Protection and Biodiversity Conservation (EPBC) Act, which doesn't require consideration of climate impact.
The decision sparked backlash from environmental groups and the Australians Greens, who accused Labor of failing a major climate test.
Greens leader Larissa Waters labelled the approval 'a betrayal' of the government's commitment to net zero by 2050 and vowed to encourage legal action.
'Approving fossil fuels out to 2070 totally undermines the government's commitment to net zero by 2050, which is already too late for a safe climate future,' Ms Waters said.
Despite the criticism, Prime Minister Anthony Albanese defended the continued role of gas during the transition.
'You can't have renewables unless you have firming capacity. You don't change a transition through warm thoughts. You do it through a concrete proposal,' he said recently.