Gas Industry Warns Emissions Bill Could Increase Power Prices

Monday’s agreement between the government and the Greens to pass its emission safeguard mechanism legislation has been met by concern from business. The gas sector has warned that the deal could increase power prices and risk gas supplies for domestic use and thus reliability of power. The government has refuted these claims and the Business Council of Australia was pleased the bill passed.

• The agreement will put a “hard” emissions cap on coal and gas projects, which the Greens say will reduce new projects in the pipeline by around half. They had wanted a ban on all new coal and gas developments.
• The Australian Competition & Consumer Commission and the Australian Energy Market Operator have called for more gas sources to be developed to reduce domestic shortages and reduce prices.
• Australian Chamber of Commerce and Industry chief executive McKellar said ““Lowering energy costs and meeting our emissions targets ­necessitates collaboration between government and industry. While we welcome the certainty that an agreement will bring, business remains concerned about access to affordable and reliable energy supply.”
  - The Australian