Energy Users Welcome Policies That Deliver More Affordable Domestic Gas Supply
Emily Wood | October 16, 2024
Numerous reports from independent bodies such as Australian Energy Market Operator (AEMO) and the Australian Competition and Consumer Commission (ACCC) clearly show that Australia has an urgent need for more gas, both for manufacturing and to support Australia’s transition to net zero. Therefore, the proposal from the Coalition to widen the scope of the Capacity Investment Scheme (CIS) to include gas is welcomed by the Energy Users’ Association of Australia (EUAA).
“Gas is a critical enabler to realise a least cost transition to net zero,” said EUAA Chief Executive Officer, Mr Andrew Richards. “AEMO’s Integrated System Plan (ISP) includes 15GW of gas peakers that will run infrequently but will be vital to maintaining a reliable energy system.”
“Critically, many large Australian manufacturers who make items we use every day like food, building products and paper are struggling to contract affordable gas supply so we welcome a conversation about bringing more gas to market.”
The EUAA represents large energy users who provide essential goods and services to the Australian community and most rely on affordable gas. Higher cost gas either impacts their competitiveness or is passed through to consumers meaning higher costs for many everyday items.
Large commercial and industrial (C&I) businesses have been sounding the alarm on gas for some time. Gas is now at a critical inflection point on the east coast – highlighted in June when a wind and solar drought meant gas was needed to keep the lights on and left AEMO scrambling to find supplies.
“We welcome the Coalition’s focus on gas and encourage all policy makers to consider any and all actions to bring more affordable gas to the domestic market which will reduce cost of living pressures and support a least cost transition to net zero,” added Mr Richards.
“EUAA member companies are doing all they can to improve energy efficiency and productivity, invest in renewable energy and fuel switch where possible, but the reality is that gas is, and will remain, an essential fuel for the foreseeable future.”
“As we have said before, pragmatic and realistic responses are needed to meet consumers’ needs and will be critical to ensuring that energy remains reliable and affordable for all as we transition our economy.”
The EUAA is the peak body representing Australian industrial and commercial energy users. EUAA membership covers a broad cross section of the Australian economy including significant retail, manufacturing and materials processing industries. Combined EUAA members employ over one million Australians, pay annual energy bills in the many billions of dollars and support the development of a lasting national energy and climate change plan that puts downward pressure on electricity and gas costs.
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Media Contact: Emily Wood 0421 042 121