Finance guru Mark Bourisexposes major problem with Australia
Story by Matt Jones For Daily Mail Australiaand Aap
• 1h •
4 min read
- Leading businessman goes after government
- READ MORE: Why Aussies can expect to be slugged with higher power bills
Australian businessman Mark Bouris has hit out at the latest energyprice rise, calling the current situation 'outrageous'.
His comments come as hundreds of thousands of households face higherpower bills as the The Australian Energy Regulator (AER) resets benchmarkprices higher.
Safety net prices differ byregion but residential electricity customers from NSW, SouthAustralia and southeast Queensland are on track for price rises of somewhere between 2.5 and 8.9 per cent compared with the last financial year.
Inflation-adjustedannual price increases of between $60 and $140 can be anticipated, depending onthe area.
Bourisexpressed his frustration over the hikes, particularly given Australia's roleas a major energy exporter.
'Householdsbrace for power price hikes while Australia's a major energy exporter.
'Gasand coal flood overseas, yet bills soar here. It's outrageous for everyone,especially those doing it tough.'
Average wholesale market spotprices increased across 2024, driven by high demand, coal generator and networkoutages, and low solar and wind output that caused 'high price events' in therelevant states, the AER said.
Butcritics argue that Australia exports too much of its gas, leaving insufficientsupply for domestic consumers.
Gas significantly influences electricity prices in Australia because itcan be quickly activated to fill any gaps in electricity supply, unlike coal,which takes longer to ramp up or down.
When there's a sudden demand for electricity or a supply shortage,gas-fired power plants can be turned on instantly to keep things stable.
But the price of gas on the east coast has trebled in the past 10 yearsbecause three gas export associations were given permission to export LNGwithout provisions to ensure enough was kept for Australian users.
According to the Institute for Energy Economics and Financial Analysis(IEEFA), these exporters have been draining the domestic gas market to takeadvantage of higher prices overseas.
'In recent years, Australian LNG exporters have continued to export gasbeyond that required to meet their long-term contracts … to take advantage ofhigh prices,' IEEFA researcher Joshua Runciman told the ABC.
There have been calls for Energy Minister Chris Bowen to be sacked oversoaring power bills
'Queensland LNG exporters have collectively shifted from being netcontributors of gas into the domestic market to net withdrawers, therebyworsening the supply/demand outlook.'
Mr Runciman said the majority of east coast gas was exported tointernational markets at the expense of domestic gas users, pushing up pricesand slowing down consumption.
The report comes as the government inked a deal with Australia PacificLNG to secure more gas for the domestic market.
AEMO chief executive officer Daniel Westerman said investment in newsupply was necessary as gas fields in the Bass Strait were depleting.
Under the Labor government's deal with APLNG, commercial and industrialgas consumers would have first preference for the new supply of up to 40PJ ofgas.
That gas would be covered by the government's code of conduct thatdictates new supply will be offered at $12 a GJ.
Energy and climate change minister Chris Bowen said the gas code hadsuccessfully secured affordable gas for local businesses and took aim at theopposition's energy policy.
'Unlike coal or nuclear, gas power generators can be turned on and offin a couple of minutes,' he said.
'And when it's off, it's zero emissions.'
But Liberal leader Peter Dutton called for Mr Bowen to be sacked overthe rising power prices.
'It's time for Chris Bowen to be sacked and I think the Prime Ministershould accept that Chris Bowen has been a total failure as the Energy Ministerin this country.
'Chris Bowen and Anthony Albanese have presided over a broken promise ofa $275 electricity cut which was made on 97 occasions before the election andnow power bills have gone up by $1300.'
