Resolving the Gas Crisis Must be an Urgent Priority
Emily Wood | May 30, 2019
With the devastating news out of Victoria yesterday that another gas reliant manufacturer will close its doors by Christmas and media reports that the Australian Competition and Consumer Commission’s latest report will again highlight systemic problems in gas markets, the Energy Users’ Association of Australia (EUAA) is again calling on all governments and the gas industry to act and resolve the gas crisis as an urgent priority.
“The ACCC has today provided more evidence that prices in gas markets have not come down enough which is sadly no surprise to us,” said Chief Executive Officer, Mr Andrew Richards.
“We are in daily contact with manufacturers up and down the east coast who are suffering the consequences of price increases of up to 200%. They feel completely let down by governments and the gas industry who assured them time and again there would be plenty of gas for everyone and it would remain affordable. Obviously, this has not been the case.”
The EUAA recently released a gas discussion paper in the hope that it would spur governments to reconsider their action in gas markets and what more could be done. Some of the ideas, such as a gas reservation policy and creation of a commonwealth gas company, are controversial but may be necessary if urgent action is delayed any further.
“That we are even considering these dramatic forms of intervention demonstrate just how bad things are,” said Mr Richards.
“The reality is, the ongoing gas crisis and lack of swift, decisive action will leave governments with no other options if they want to avoid job losses in manufacturing, food processing and building products industries to name but a few.”
“It’s not too late to resolve the gas crisis, but the recovery plan must start today.”
Large energy users such as businesses who manufacturer health care products, paper, plastics, food and building materials, purchase their energy differently to residential and small business customers. The issues they face in energy are more complex and the solutions more challenging to find. Their combined energy bills total hundreds of millions of dollars a year, they employ thousands of Australians as well as supporting many thousands of indirect jobs.
Media Contact: Emily Wood 0421 042 121