Cheap energy is the life blood of any modern economy. Take it away and everything suffers. The Australian.
Australian businesses have suffered the sharpest annual fall in gross operating margins in a quarter of a century due to inflation-driven costs, including a “staggering” 51 per cent spike in gas prices, putting at risk Jim Chalmers’ call for an economic recovery led by the private sector.
Their troubles are likely to deepen following the energy regulator’s decision to approve electricity price rises of up to 8.4 per cent for businesses from July 1, with industry leaders accusing both the federal and state governments of flagrant energy policy failures.
…New economic modelling showed gas prices for manufacturers had risen by 51 per cent over the past four years.
My only question is where has Willox been for the past three years? The industry lobbies in Australia are a pathetic bunch gentlemanly fools that the extractive industries run rings around. During a Labor tenure they used to have the inside track, now they are like mice squeaking outside the tent.
…Australian Chamber of Commerce and Industry chief executive Andrew McKellar said the expected extension of the $300 energy rebate in the budget would take pressure off, but it was an unsustainable short-term fix. “At some point that is going to have to run out and prices are going to revert,” Mr McKellar said.
He said renewables alone couldn’t solve issues with energy supply and reliability and more gas generators were needed. “It’s policy failure all round,” he said.
Ominously, the word coming out of the alternative solution of LNG imports underwritten by the taxpayer is not yet dead.
The aspiring LNG importer owned by mining billionaire Andrew Forrest has complained to state and government energy ministers that pipeline giant APA Group is creating a false sense of security about the future availability of gas supplies, in a bid to further its own commercial interests.
The submission from Squadron Energy, which is owned by the Forrest family’s Tattarang investment vehicle, was made to the ministers on Friday. It says APA is misleading policymakers by claiming there is little risk of gas shortages on the east coast under its pipeline expansion plan.
…People with knowledge of the discussions, speaking on condition of anonymity given the sensitive nature of the talks, said D’Ambrosio had been pushing for imports to be the focus of powers being considered by ministers for AEMO to address the looming risk of gas shortages in the south-east.
…At their meeting on Friday, federal and state energy ministers delayed a decision about expanded powers for AEMO until July, but noted that any such move would require it to be “technology and solution agnostic” with a focus on the timeframe of gas deliveries and costs for consumers.
…“It is … critical that energy policy is informed by facts, not paid research that supports commercial interests,” Squadron said. It added that APA’s argument was “based on selective data and flawed assumptions”.
The sheer hypocrisy of it takes the breath away. One interest labelling another interest an interest.
We can enjoy a breath of relief today, but this battle isn’t over. The Australian.
Federal Energy Minister Chris Bowen and his state counterparts discussed the prospect of new powers for the market operator at a meeting on Friday and agreed to make a final decision in June. That would be the first meeting of the group after the looming federal election, which must be held by May 17.
In a statement after the meeting, the energy ministers acknowledged “urgent” action was needed, but moved to absolve themselves of full responsibility for the expected gas shortfall, which has been years in the making.
“Ministers discussed east coast gas supply, noting the importance of urgent demand and supply side actions to help support Australia’s transition to net zero, including anticipated market-led solutions,” the statement read.
“Ministers strongly encouraged the private sector to respond to the clear market signals and deliver the investment and projects needed to ensure gas markets are well supplied.”
D’Ambrosio has lost her mind entirely if she thinks Victorians will thank her for the LNG import Gasmageddon
I suspect she is in close contact with the Grattan Institute, which is a paid shill for the gas export cartel.
Today those imports will arrive at $25Gj versus $13.85Gj, which is also double what it should be.
According to LNG futures, even in 2028, when the global glut is supposed to be in full swing, LNG imports will be around $16Gj.
If LNG imports begin this year, in 2026/27 electricity prices will skyrocket by another third as the gas export cartel limits supply further and import parity is the new marginal price setter. If rebates are dropped by the LNP as well, energy prices will roar to nation-annihilating levels.
We will have the cheapest gas in the world all shipped to China, leaving us the highest energy costs in the world and no economy to show for it.
