The Australian Energy Market Commission (AEMC) has finalised a new national framework to manage how customers permanently exit the gas network, as electrification gathers pace across households and small businesses.
Until now, consistent national rules did not exist for customers wanting to abolish their gas connection. This has led to confusion about the difference between disconnection (which can be reversed) and abolishment (which is permanent), and uncertainty about who should pay.
AEMC’s new national rules for gas network exits comes as more consumers shift to electric appliances and distributed energy solutions, with residential and small commercial gas demand projected to drastically fall by around 80 per cent over the next 20 years.
Disconnection versus abolishment
The new framework establishes clear, outcomes-based definitions to distinguish the two. It also introduces model standing offers for basic abolishment services, with upfront pricing to be approved by the Australian Energy Regulator to ensure charges remain prudent and efficient.
Importantly, the rules adopt a cost-reflective approach. Customers choosing to abolish their connection will pay the efficient cost of the service, rather than those costs being distributed across remaining gas users.
This is designed to address growing equity concerns, as a shrinking customer base risks leaving renters, apartment residents and lower-income households exposed to rising network costs.
Supporting informed decisions
The framework also introduces new information requirements to help customers better understand their options, including the implications of disconnection versus full removal.
For most consumers, the AEMC expects minimal change beyond improved access to clear and consistent information.
At the same time, the rules retain flexibility for jurisdictions to determine their own pathways for managing gas network decline, including potential phased decommissioning strategies.
Gas distributors will continue to be responsible for maintaining network safety, with these costs shared across all customers.
Anna Collyer, Chair at AEMC, explained that the reforms strike a balance between enabling customer choice and protecting those who remain connected.
“Customers have the right to choose the energy services that work for them,” Collyer said.
“These rules provide a clear pathway to leave the gas network on fair terms, while ensuring remaining customers are not left paying for someone else’s decision.”
Phased implementation from 2026
The framework will be rolled out in stages. New information requirements for distributors will begin on 1 October 2026, followed by retailers in January 2027. Core obligations for abolishment services will align with each network’s next regulatory period from 2027.
The reforms form part of a broader AEMC gas transition package.
For more information, visit the AEMC website.
