Reichel told the VicGas 99 conference that there was a lot of unease about the operation of the gas spot market, which was due to start on March 1.

"All market participants need to have confidence in the market as it commences and this is far from the case with about two weeks to go," he said. "The silence regarding the progress and outcome of market trials to date has been deafening."

He said concerns included last minute changes to the market and system operating rules.

Trials for the gas spot market, to be operated by government controlled system operator VENCorp, have been held since July last year with a two month disruption due to the explosion at Esso Australia Ltd's Longford gas processing plant.

The plant is supplied from Bass Strait fields in a joint venture between Esso Australia, a unit of ExxonCorp, and The Broken Hill Pty Co Ltd.

Victorian gas consumers using more than 500,000 gigajoules would be able to choose their retailer or enter the spot market directly from October 1 following the first stage of retail market competition. Reichel said there was uncertainty about how the market would work, and called for increased attention to an education programme.

"There is only a handful of people that understand how the market place is to work and of these only a couple have responsibility for end use purchase," he said.

Amcor Ltd National energy manager David Headberry criticised the market and system operation rules as too complex and too costly, and said there was no provision for appeal.

Headberry said there were a range of other issues that needed to be examined and details of the market had not been fully explained.

"Consumers still do not know what the future cost of their gas will be," he said. "I am contestable in six months time and I can't work out my budget for next year--it isfrightening."

VENCorp chief executive officer David Knipe told the conference on Wednesday that the spot market would definitely start in March, and that about 55 of the 73 readiness criteria had been met.