{"id":18958,"date":"2018-02-06T07:24:54","date_gmt":"2018-02-05T20:54:54","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=18958"},"modified":"2018-02-06T07:24:54","modified_gmt":"2018-02-05T20:54:54","slug":"gas-electricity-prices-mb0449","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/gas-electricity-prices-mb0449\/","title":{"rendered":"QLD, NSW And Victoria Facing Major Electricity Price Rises : Report"},"content":{"rendered":"
\"Gas

Image: Pline<\/a>, CC BY-SA 3.0<\/a>, Link<\/a><\/p><\/div>\n

Lack of significant Government intervention in the gas market could lead to households in Queensland, New South Wales and Victoria facing hefty electricity bill increases says the McKell Institute.<\/p>\n

While Australia may become the world\u2019s largest producer of LNG this year, the report states up to 70 per cent of East Coast LNG is exported; leaving shortfalls here at home and boosting the price of gas locally.<\/p>\n

“It is ironic that Australia, as the eminent world leader in gas exports, is subject to the world\u2019s highest gas prices,” says the new report from McKell.<\/p><\/blockquote>\n

The Institute states the impact of wholesale gas prices on consumer energy costs is greater than gas-fired power generation’s contribution to Australia’s energy mix as these generators are often the marginal supplier and as such, set prices.<\/p>\n

In June last year, the Federal Government announced reforms intended to address domestic supply issues – the Australian Domestic Gas Security Mechanism (ADGSM). However, the McKell report states the reforms to federal gas policy have not translated into price reductions and there are concerns the ADGSM isn’t nimble enough to meet immediate shortfalls.<\/p>\n

“While the introduction of the ADGSM is one step towards guaranteeing more certainty in the Australian domestic gas market, it is likely insufficient in providing long-term certainty, and is certainly not a panacea for escalating wholesale gas prices on the East coast,” states the report.<\/p><\/blockquote>\n

Based on ACCC advised figures of where the wholesale gas price should have been last year, current Government policy settings and price and consumption trends, McKell forecasts the following increased annual electricity costs over “realistic and desired rates” by 2019.<\/p>\n