Large Energy Users Back AEMO Call for More Gas

Emily Wood | March 9, 2017

The Energy Users Association of Australia (EUAA), representing large energy users from a broad range of industries in Australia including manufacturing, raw materials, food and packaging companies, has been a strong advocate for gas market reform, warning for some time of a looming crisis if policy makers did not act decisively.

Today it backed AEMO’s call for more gas as poor decisions of the past start to wreak havoc with energy users.

“Gas users are finding out the hard way that the looming crisis is now an actual crisis with many reporting unprecedented increases in gas prices as they attempt to renegotiate long-term agreements,” said EUAA CEO Andrew Richards.

“Details released from AEMO today provide further evidence of the need for swift action to ensure security of supply for both gas and electricity and we call on state and federal governments to act swiftly to protect the best interests of consumers and the Australian economy.”

The EUAA pushed hard for the ACCC enquiry into the East Coast Gas Market and continue to support the implementation of its key recommendations. It has been a vocal advocate for a removal of gas moratoriums and urged governments to take action to prevent the crisis causing long-term detrimental impacts on the Australian economy.

“Warning signs are turning into critical events with gas generators unable to gain gas contracts which prevents them from supporting the NEM when required, and large energy users are suffering with extreme bill shock with increases in new contracts that defy belief. This situation could not be more urgent,” said Mr Richards.

EUAA’s recent submission to the Finkel Review included confidential member financials detailing the extreme increases to gas and electricity prices that large energy users are experiencing. Some users have seen price increases of up to 150% from previous contracts. EUAA has warned that without action the ramifications will either flow on to the Australian community through price increases or, in cases where companies are unable to pass the costs on, could result in jobs going offshore.

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