We are working with the Australian Energy Market Operator to implement zonal heating values for small and residential customers.
Renewable gas blending and gas heating values
May-June 2022Expected formal consultation starts
Amendments to code of practice and AEMO’s market proceduresEnd of 2022
Zonal heating values implementedMid 2023
Victoria has significantly higher levels of residential gas use than other Australian states or territories. As part of efforts to achieve the state’s greenhouse gas emissions reduction targets, the government is proposing changes to promote the integration of hydrogen and other renewable gas facilities in gas distribution networks.
Among the proposed changes, the Victorian Minister has requested the Australian Energy Market Operator to implement zonal heating values in Victoria for small and residential customers.
The Gas Distribution System Code of Practice determines the application of a single daily state-wide heating value to all non-daily metered (small and residential) customers.1 It is proposed that instead of a state-wide heating value, a heating value for each zone in the state is applied to the calculation of gas bills.
We intend to undertake a joint formal consultation with the Australian Energy Market Operator to amend the Gas Distribution Code of Practice and relevant Australian Energy Market Operator market procedures. The consultation approach will seek to inform and coordinate necessary changes across industry as well as progress the most cost-effective solution and, where possible, leverage existing processes, procedures and IT systems.
Our aim is to implement zonal heating values by mid-2023, to coincide with the proposed commissioning of the Hydrogen Park Murray Valley project. The Australian Energy Market Operator will provide stakeholders with a delivery timetable for the project in March 2022.
1 Schedule 1, Part D of the Gas Distribution System Code of Practice.