EUAA Supports the Continuation of ADGSM and Measures to Increase Domestic Gas Supply

EUAA Supports the Continuation of ADGSM and Measures to Increase Domestic Gas Supply

Emily Wood | January 28, 2020

Representing many of Australia’s largest energy users, including some that spend almost $1 million each day on gas, the Energy Users’ Association of Australia (EUAA) supports the continuation of the Australian Domestic Gas Security Mechanism (ADGSM) and the government’s commitment to consider policies that increase domestic gas supply and competition.

“We welcome the findings of the ADGSM review and the government’s commitment to continue this policy which has provided benefits to Australian gas consumers,” said EUAA Chief Executive Officer, Mr Andrew Richards.

“Gas is a critical input into the manufacture of many essential items used in the Australian community every day including bricks, steel, cement, food, packaging and glass. Ensuring adequate gas supply at affordable prices is essential to every Australian.”

“We urge the government to fully consider all of the review’s recommendations and to continue to engage with both the gas industry and energy users on ways to increase supply, improve competition and lower prices.”

While gas prices have eased somewhat over the past two years, retail prices are still up to triple what they were a decade ago while securing affordable, long-term contracts is proving to be very difficult.

“We welcome the Federal Government’s commitment to work with state and territory governments to consider further measures to improve the domestic gas market, such as prospective national gas reservation,” said Mr Richards.

The EUAA represents large energy users, some of whom who are spending almost $1 million per day on energy. Many large energy users are seeking solutions to rising energy costs and have invested billions into energy efficiency, system upgrades, energy switching, storage, renewable energy, demand response and many other measures with the aim of reducing energy consumption and costs.

Large energy users who are producing essential goods and services, foods, building materials, paper, plastics and raw materials are under increasing pressure from energy bills. Increased gas costs have impacted many energy users with some commenting that they are ‘working for the gas company’ due to prices being so high.

“While there is no silver bullet to solve the challenges in the Australian domestic gas market, the ADGSM and consideration of prospective national gas reservation have important roles to play,” said Mr Richards.

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Media Contact: Emily Wood 0421 042 121

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