Economic Principles

01 — The Roadmap

Pricing moves from cost-reflective today to market-led over time — with affordability protected the whole way through.

Transition to cost-reflective prices across the value chain in the short term. Market-led pricing in the long term is required. Mitigations must be in place to address the vulnerable population that will be impacted by price change.

Now → Short term

A. Cost-reflective

Across all segments of the value chain, to enable participants earn a normal rate of return while stimulating the sector's growth.

Later → Long term

B. Transparent & market-led

Provides a reasonable transition period from the current status-quo, moving pricing toward open market mechanisms.

Runs beneath both phases

C. Balancing the needs of vulnerable end users

Using incorporated market mechanisms, acknowledging the reality of the various socio-economic groups with regards to affordability.

02 — The Principles

Gas pricing principles during the Decade of Gas should be…

Three principles guide how gas is priced across the value chain. Tap a card for the full detail.

PRINCIPLE A

Cost reflective

across all segments of the value chain to enable participants earn a normal rate of return while stimulating the sector's growth.

This is the short-term footing: prices across production, transport, and distribution need to cover real costs so operators can earn a fair return — the foundation the sector's growth is built on.

PRINCIPLE B

Transparent and market-led

and provide a reasonable transition period from the current status-quo.

Over the long term, prices should be set by open, visible market mechanisms rather than administered rates — phased in gradually so the sector and its consumers aren't asked to adjust overnight.

PRINCIPLE C

Balancing needs of vulnerable end users

using incorporated market mechanisms, acknowledging the reality of the various socio-economic groups with regards to affordability.

Not every household or business can absorb a price transition at the same pace. This principle keeps affordability for the most vulnerable groups built into the pricing mechanism itself, not treated as an afterthought.