Gas customers are being urged not to worry about the coming winter despite warnings of potential shortfalls in the market.
The Australian Energy Market Operator warned of risks to gas supply in eastern states unless more production is set aside specifically for domestic use.
While its most recent report said customer demand would be met in central and eastern Australia, supply risks in areas such as Victoria remained.
However, market operator CEO Daniel Westerman said the assessment of the gas market was not scaremongering for energy users.
“The point of this report is not to make consumers worry or industry worry. Frankly, it’s about providing a fact base,” he said.
“The supply is declining at a faster rate than demand. Those shortfalls from 2027 onwards will continue to widen as we go into the future.
“That is why we are calling for investment in new sources of supply to overcome those annual shortfalls from 2027 onwards.”
News of the potential shortfall coincides with the energy regulator putting forward a more than 25 per cent rise in power prices for the next financial year.
A decision on the increase, forecast to be as much as $1738 a year more, is set to be made in May.
Freja Leonard from Friends of the Earth Melbourne’s “no more gas” campaign said supply issues could also be averted by transitioning energy customers to electricity.
“Gas is 84 times more polluting to the climate in the short term than carbon dioxide, it’s terrible for human health when we burn it in our homes and it’s less affordable with each new bill cycle,” she said.
“We urgently need governments to develop a plan with practical steps to cut demand and set an end date for gas use in homes and commercial buildings altogether.”
Ms Leonard said possible shortfalls in the gas market represented a government failure to deal with the energy transition.
A parliamentary committee will hear on Friday from WA-based groups on how the country can make a renewable energy transition successfully.
The committee will also hear from the WA state government as well as mining company Fortescue’s future industries division.
Discussion about this post