• Gas Market Moratorium

    The Gas Market Moratorium prevents Synergy from suppling gas to customers who consume less than 0.18 terajoules (180 gigajoules) per year (this equates to an annual gas bill of approximately $6,000).

    The purpose of the Moratorium is to provide competitive neutrality for participants in the small use electricity and gas markets. The Moratorium achieves this by preventing Synergy from fully accessing the gas market while gas retailers are denied full access to the electricity market.

    When a customer’s annual consumption goes above the Moratorium threshold, the customer remains above the Moratorium threshold into the future. This is for practical reasons and is consistent with the existing arrangements for electricity contestability. The effectiveness of this arrangement is monitored by the Retail Energy Market Company Limited.

    Background

    In October 2002 a moratorium was applied to the former Western Power Corporation, preventing it from supplying gas to small use customers (those consuming less than one terajoule of gas per year, which covered households and some small businesses). This moratorium was also applied to the Western Power Corporation’s successor entities Verve Energy and Synergy.

    In 2007 the Minister for Energy approved changes to the Moratorium threshold to reduce the threshold at which Synergy can supply gas to customers from 1 terajoule per annum to 0.18 terajoules per annum. This was to align the Moratorium threshold with the electricity contestability threshold.

    In 2007 the Minister for Energy also approved lifting the Moratorium threshold from Verve Energy.

    The Gas Market Moratorium Ministerial Direction, giving effect to these changes from 1 July 2007, was published in the Western Australian Government Gazette on 23 March 2007.

    Further Information

    For further details about the Gas Market Moratorium, contact the Public Utilities Office on (08) 6551 1000.