Industry cautions gas changes will blow up in government's face

In a submission to the government on its plans for a mandatory Code of Conduct for the gas industry, the Australian Petroleum Production and Exploration Association said the reform would actually worsen the nation's gas supply and cost challenges.

Soaring gas prices for households and businesses caused the government late last year to announce a raft of measures including a 12-month price cap on wholesale supply contracts, a mandatory industry code of conduct to ensuring "reasonable" pricing and more resources for the consumer watchdog to enforce the code.

At the time, Resources Minister Madeleine King said the changes were necessary because without them retail gas prices would soar 20 per cent, driven in large part by the global energy shock caused by the war in Ukraine.

But APPEA chief executive Samantha McCulloch said the proposed reforms would not achieve the government's aims.

"These interventions will reduce investment and ultimately increase the risk of gas shortages and further price increases - the opposite of what the [Australian Competition and Consumer Commission] says is needed," Ms McCulloch said.

"As with the introduction of the temporary price cap ... the proposed mandatory code risks causing maximum disruption with minimal benefit to Australians."