Gas prices in New South Wales and the ACT may rise by around 20 per cent from the middle of this year – a sign of things to come nationally.
According to an ABC report, AGL wants to whack an extra 20 per cent on to prices for customers in the greater Sydney region and inland New South Wales, while Origin Energy is proposing a similar increase for the south-west of the state from July this year.
In November last year, AGL CEO Michael Fraser also warned of the impact of continue gas price hikes, stating baseload gas-based power generation “doesn’t work without a price on carbon.”
While the gas sector has continually developed fields in Australia at a frightening pace, the reality is this development has had little to do with securing supplies and lowering prices for domestic consumption. It has more to do with export profits given the huge demand for gas overseas.
In July last year, Zero Emissions’ Matthew Wright said the so-called NSW gas crisis was “fabricated” and regardless of how many gas fields are developed; pricing will never drop below levels at the time due to the lure of export bucks.
The Lock The Gate Alliance yesterday called on the NSW Resources Minister to pull back from his governments support for coal seam gas (CSG) mining in New South Wales, following admissions by gas companies and IPART that the greatest threat to gas prices in the state is the CSG export industry itself.
The skyrocketing price of gas will not only make solar hot water systems more attractive, but also using solar panels to power electric hot water units.
According to a Bloomberg New Energy Finance (BNEF) report in April 2013, wind energy was already cheaper than new gas for electricity generation – and solar wasn’t far behind.
The future of gas prices in Australia is another reason that the nation’s Renewable Energy Target should remain untouched.
In addition to the financial cost of gas; there’s also a significant price in terms of environmental damage, particularly in relation to the controversial practice of fracking.
Image credit: Lock The Gate Alliance
