House debates Bills
Domestic Gas Reservation Bill 2026; Consideration in Detail
Nicolette Boele Bradfield, Independent
1:06 pm
I rise to speak to the amendments circulated in my name to the Domestic Gas Reservation Bill 2026. In my second reading speech, I said that this bill is a step forward but that it leaves too much to ministerial discretion. These amendments deal with one of those discretions. Clause 27 lets the minister make an adjustment to an exporter's obligation to supply gas domestically under the reservation scheme. That means lowering or deferring the obligation. As drafted, the minister can do that in three ways: if the exporter can't reasonably supply enough gas to the domestic market because, for instance, of existing contracts, if it's already supplying gas under an existing reservation scheme like in WA, or if infrastructure constraints stand in the way. On their face, those are reasonable grounds, but the bill already recognises that there's more than one way to meet a domestic supply obligation. Under clause 19, the Gas Market Code can count things as domestic supply even though they aren't a direct gas sale—supplying renewable gas, reducing a gas exporters own gas use or helping other energy users cut their gas use, including through electrification.
I welcome this deemed supply provision because it recognises that the cheapest gas is the gas Australians never have to buy. The problem is that, in clause 27, the minister's discretion to adjust gas supply obligations ignores this part of the bill. An exporter could say, 'We can't get the molecules to market,' and have its domestic supply obligation reduced without the minister interrogating whether it could have met that obligation another way. My amendment seeks to strengthen the domestic supply obligation by ensuring that the minister can't make an adjustment unless the exporter is unable reasonably to meet its obligation through renewable gas or demand reduction. Before we let an exporter off the hook, we should check whether it could have helped a household switch to a heat pump or helped a factory electrify its process heat.
These amendments make the 'deemed DSO' component of the bill consistent with the 'DSO adjustment' part of the bill, and they ensure that, before companies are given a leave pass, they should try the cleaner options offered by electrification. Every adjustment to an exporter's domestic gas supply obligation is gas Australian households and businesses don't receive. So, if an exporter can still meet its obligation by lowering demand, the domestic market gets the same benefit, and a more enduring one, that lowers the cost of living, improves energy security and reduces emissions. While a gas reservation scheme might protect Australians from international gas prices, electrification means that they don't rely on that gas anymore. I commend the amendment to the House.
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