Competition and Consumer (Price Inquiry—Natural Gas) Direction 2025

Administered by Department of the Treasury

Legislation au F2025L01012 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the Treasurer

Competition and Consumer Act 2010

Competition and Consumer (Price Inquiry–Natural Gas) Direction 2025

Section 95H of the Competition and Consumer Act 2010 (the Act) provides that the Minister may require the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into a specified matter or matters.

The Competition and Consumer (Price Inquiry–Natural Gas) Direction 2025 (the Direction) is made under subsection 95H(1) of the Act. The Direction requires the ACCC to hold a price inquiry into the market for the supply of natural gas in Australia.

On 19 April 2017, the then Treasurer directed the ACCC to hold a price inquiry into the supply of natural gas in Australia with interim reports at least every six months and a final report due by 30 April 2020.  On 25 July 2019 the then Treasurer extended the timeframe of the price inquiry until 30 December 2025.

The Direction further extends the timeframe of the current ACCC price inquiry to 30 June 2030, and requires the ACCC to provide interim reports at least twice every six months. This aligns with reforms made in March 2023 to provide for quarterly consideration of whether the activation of the Australian Domestic Gas Security Mechanism is warranted due to a domestic gas supply shortfall.

Part 1 of the Direction provides the machinery provisions of the instrument, including the definitions. 

Natural gas, for the purposes of this Direction, is a substance primarily consisting of hydrocarbons (predominantly methane) and that would be in a gaseous state at standard temperature and pressure.  Natural gas includes liquefied natural gas; gas which has been processed into a liquefied form through alterations to temperature.

Part 2 of the Direction provides the terms of reference for the inquiry and matters that must be taken into consideration. The ACCC must have particular regard for the transparency of the supply of natural gas, the supply of and demand for natural gas, natural gas substitutes and natural gas transportation services, and the pricing and availability of natural gas to Australian consumers and businesses.

The ACCC must also have particular regard for the availability of natural gas for current and future supply; the cost and availability of goods or services that assist or facilitate the supply of natural gas, such as drilling and processing services, and compare the pricing, volume and availability of natural gas for domestic consumption versus export.

While the ACCC must consider all of the matters listed in section 7, the ACCC may consider other matters, within the scope of the inquiry.

The ACCC must make use of relevant publicly available information, including information published by the Australian Energy Market Commission, the Australian Energy Market Operator, and the Australian Energy Regulator.

The ACCC must give the Treasurer an interim report by 30 September 2025 and thereafter provide interim reports at least twice every six months. The ACCC must complete the inquiry and provide a final report to the Treasurer by 30 June 2030.

Where appropriate, the ACCC may provide to the market anonymised data and analysis relating to estimates of LNG netback prices.

In accordance with section 17 of the Legislation Act 2003, the ACCC, Department of Industry, Science and Resources, and the Department of Climate Change, Energy, the Environment and Water have been consulted on the terms of this Direction.

The Direction is a legislative instrument for the purposes of the Legislation Act 2003.  In accordance with item 2 of the table in section 9 and item 3 of the table in section 11 of the Legislation (Exemptions and Other Matters) Regulation 2015, the instrument is not disallowable and does not sunset as it is a direction by a Minister to a person or body. It is appropriate that this instrument is not disallowable as it is a ministerial direction, and therefore executive control is intended. Similarly, the direction is intended to remain in place until the inquiry is completed or unless and until revoked by the Treasurer, and therefore it is appropriate that it not sunset.

The Direction commences the day after the instrument is registered.

A statement of Compatibility with Human Rights is at Attachment A.


ATTACHMENT A

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Competition and Competition and Consumer (Price Inquiry–Natural Gas) Direction 2025

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

Section 95H of the Competition and Consumer Act 2010 (the Act) provides that the Minister may require the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into a specified matter or matters.

The Competition and Consumer (Price Inquiry–Natural Gas) Direction 2025 (the Direction) is a direction to the Chairperson of the ACCC to hold a price inquiry into the supply of natural gas.

The Direction sets out the terms of reference for the inquiry. In conducting the inquiry, the ACCC must have particular regard for the transparency of the supply of natural gas, the supply of and demand for natural gas, natural gas substitutes and natural gas transportation services, and the pricing and availability of natural gas to Australian consumers and businesses.

The ACCC must also have particular regard for the availability of natural gas for current and future supply; the cost and availability of goods or services that assist or facilitate the supply of natural gas, such as drilling and processing services, and compare the pricing, volume and availability of natural gas for domestic consumption versus export.

The ACCC must make use of relevant publicly available information, including information published by the Australian Energy Market Commission, the Australian Energy Market Operator, and the Australian Energy Regulator.

The ACCC must give the Treasurer an interim report by 30 September 2025 and thereafter provide interim reports at least twice every six months. The ACCC must complete the inquiry and provide a final report to the Treasurer by 30 June 2030.

Where appropriate, the ACCC may provide to the market anonymised data and analysis relating to estimates of LNG netback prices.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Competition and Consumer (Price Inquiry–Natural Gas) Direction 2025 was enacted under section 95H of the Competition and Consumer Act 2010, and is a legislative instrument aimed at addressing concerns over the transparency, pricing, and availability of natural gas in Australia. This Direction extends an existing inquiry into the natural gas market, which was initially mandated by the Treasurer in 2017, and further extended in 2019, to ensure a comprehensive analysis of the market. The inquiry is overseen by the Australian Competition and Consumer Commission (ACCC), which is required to report on various aspects including the supply and demand for natural gas, its substitutes, transportation services, and the costs and availability of related goods and services. The ACCC must also consider the impact of natural gas pricing and availability on both domestic consumers and businesses, as well as for export purposes. The Direction mandates that the ACCC submit interim reports to the Treasurer every six months, with a final report due by 30 June 2030, and allows for the provision of anonymised data and analysis relating to LNG netback prices where appropriate.

Scope and Application

The Competition and Consumer (Price Inquiry–Natural Gas) Direction 2025, issued under the Competition and Consumer Act 2010, mandates the Australian Competition and Consumer Commission (ACCC) to conduct a comprehensive price inquiry into the natural gas market across Australia. This inquiry is particularly focused on various aspects such as the transparency of natural gas supply, the balance between supply and demand, substitutes and transportation services related to natural gas, as well as the pricing and availability of natural gas to Australian consumers and businesses. Additionally, the ACCC is required to consider the availability of natural gas for both current and future needs, the costs and availability of services that support the supply of natural gas, and to compare the pricing, volume, and availability of natural gas for domestic consumption versus export. The Direction extends the timeframe for the inquiry to 30 June 2030, with interim reports due at least twice every six months, and a final report by 30 June 2030. This legislative instrument does not specify any exclusions or exemptions, and its geographic reach is national, encompassing all aspects of the natural gas market within Australia. The Direction is not disallowable and does not sunset, reflecting the executive intent for the inquiry to continue until completion or revocation.

Key Provisions

The Competition and Consumer (Price Inquiry–Natural Gas) Direction 2025 is a legislative instrument made under section 95H of the Competition and Consumer Act 2010 (the Act). It mandates the Australian Competition and Consumer Commission (ACCC) to conduct a price inquiry into the market for natural gas supply in Australia. The Direction outlines specific terms of reference for the inquiry, including the need for the ACCC to consider factors such as the transparency of natural gas supply, the supply and demand dynamics, substitutes and transportation services, and the pricing and availability of natural gas to consumers and businesses (Part 2). Additionally, the ACCC must assess the availability of natural gas for both current and future use, the cost and accessibility of services that support natural gas supply, and compare the pricing and availability of natural gas for domestic use versus export (Part 2). The ACCC must rely on publicly available information, including data from the Australian Energy Market Commission, the Australian Energy Market Operator, and the Australian Energy Regulator (Part 2). The Direction imposes several obligations on the ACCC. It requires the ACCC to provide an interim report to the Treasurer by 30 September 2025, followed by interim reports at least twice every six months thereafter. The final report is due by 30 June 2030. The ACCC may also provide anonymised data and analysis relating to liquefied natural gas netback prices if appropriate (Part 2). The Direction extends the timeframe of the current ACCC price inquiry, originally set to conclude by 30 April 2020, and subsequently extended to 30 December 2025. It now extends to 30 June 2030, aligning with reforms that mandate quarterly consideration of the Australian Domestic Gas Security Mechanism due to potential domestic gas supply shortfalls. There are no explicit offences, penalties, or civil/criminal consequences for breaches outlined in the Direction itself. However, the Direction is a ministerial direction under the Act, and non-compliance with such directives can potentially lead to legal actions under the Act, including enforcement actions by the ACCC or other regulatory bodies. The Act provides for a range of penalties for breaches, including fines and imprisonment, depending on the nature and severity of the offence. The maximum penalties are specified within the Competition and Consumer Act 2010, which may include substantial fines for corporations and imprisonment for individuals responsible for breaches.

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Direction
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Definitions & Interpretation
Offence Provisions
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.