Gas Industry Co consulted on the Gas Governance (Insolvent Retailers) Regulations 2010, which were created using the urgent regulation-making provisions of the Gas Act (section 43P), in March-April 2011. The outcome was a recommendation by Gas Industry Co to the Minister of Energy and Resources (the Minister) that the Regulations be allowed to lapse and consideration be given to whether a generic regulatory solution was required to address retailer insolvency. This work including the consultation paper, the submissions received, and the Recommendation to the Minister can be found in the E-Gas Insolvency (2010-2011) section.
The Minister accepted the recommendation and, as a first step for that work, Gas Industry Co engaged Castalia Strategic Advisors (Castalia) to prepare a discussion paper on whether there were any identifiable market failures that warrant regulatory intervention in the event of gas retailer insolvencies. The discussion paper and the submissions received on it are available under the 'Policy Development - Discussion Paper' section.
The next step was the publication of an Options Paper, which presented various options for addressing the market failures identified in the Castalia Report. The Options Paper is available under the 'Policy Development - Options Paper' section.
On 27 May 2015, Gas Industry Co published a Final Decision Paper Framework for Gas Retailer Insolvency Arrangements. It sets out the process that Gas Industry Co will follow in the event of a retailer insolvency and the regulatory arrangements that can be put in place to support that process. The Final Decision Paper completes the policy development process for this workstream. Gas Industry Co anticipates that any further policy work will be limited to reviews of the Insolvency Framework from time to time to ensure that it remains current.