EUAA Submission: Gas Price Cap Instrument
Emily Wood | December 15, 2022
‘…The EUAA has consistently highlighted, and the ACCC has consistently concluded, the existence of market failure in the east coast gas market. This has been caused by a combination of factors highlighted by the ACCC in its regular gas market reports. We agree that while a price cap is a relatively blunt instrument, more preferable approaches eg increasing supply in southern states, are simply not possible or could not be implemented quickly to prevent potentially severe impact on large gas users, their employees and more broadly in the community.
The old saying ‘the solution to higher prices is higher prices’ only works in a properly functioning competitive gas market. It does not apply in the east coast gas market where LNG exporters control >80% of reserves and restrictions in NSW and Victoria prevent new supply being developed. …’
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