The Andrews Labor Government today presented its proposed gas market reforms to the COAG Energy Council.
The Labor Government developed its own plan because Malcolm Turnbull's Australian Domestic Gas Security Mechanism doesn't go far enough, quick enough.
In fact the Turnbull Government's own analysis released to COAG has shown that the Mechanism cannot be expected to reduce domestic prices below export prices.
The Victorian proposal includes a new gas export mechanism that would place a cap on the total allowable gas that major companies can export in order to protect domestic needs.
The Labor Government is also exploring the development of a LNG import terminal in Victoria.
Australia is now the world’s second largest LNG exporter, with around two thirds of gas produced for the east coast market exported to Asia.
There is something seriously wrong when you can buy Australian gas in Japan for a cheaper price than what businesses in Victoria are being charged – and this needs to change.
The Australian Energy Market Commission also handed down its review into the Victorian gas market which made several recommendations aimed at lowering barriers to entry, streamlining trading practices and improving transparency to help support greater competition.
These recommendations were accepted by the Andrews Labor Government and will be implemented without delay, putting downward pressure on gas prices.
Victoria has also joined with the ACT, Queensland and South Australia to independently request that the Australian Energy Market Commission investigate the implementation of a national Clean Energy Target.
Quotes attributable to Minister for Energy, Environment and Climate Change Lily D'Ambrosio
"If Malcolm Turnbull was genuinely concerned about rising power prices he would immediately endorse a clean energy target and cap the unsustainable level of gas exports that are driving up prices – this would give businesses, industry and consumers the certainty they need."
"Malcolm Turnbull's own advice shows that his gas plan won't have any impact on prices. Our plan would have an immediate impact and should be implemented without further unnecessary delays."
“Victoria and other states are willing to go it alone on a Clean Energy Target. The paralysis in the Liberal party, fuelled by childish bickering between Malcolm Turnbull and Tony Abbott, is leading to higher energy prices for Victorians.”
Reviewed 26 June 2020