Gas cartel destroys Coalition Government

Via Herald Sun:

Baby Boomers, Millennials, mums and dads and every state and territory are united on one thing this election — cost of living is their number one issue.

…After five years in power, the Coalition is likely to take a hit over cost of living issues given wage growth remains sluggish and households haven’t seen a major reduction in power bills.

…Power prices will be a key election issue with the exclusive Australia Speaks survey revealing they’re the most concerning household expense for the majority of voters.

Millennials were the only demographic that didn’t view rising electricity and gas prices as their key concern, according to a special election edition YouGov Galaxy poll.

…Every other demographic — Baby Boomers, Gen X, mums and dads, Australians without children and voters in every state and territory — named electricity bills as their chief concern among household expenses.

Skyrocketing gas and power prices are both the direct result of the gas cartel’s engineering of an artificial shortage and crazy prices on the east coast.

The Government is getting everything that it deserves on the issue, and if Labor doesn’t fix the gas market with stronger domestic reservation, then it will be next.


Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.


  1. Even StevenMEMBER

    I can’t understand the stupidity of the Coalition on this. Even if the gas producers are large donors, surely they can see they need to amputate this gangrenous limb. I think a large part of it is that philosophically, the Coalition is reluctant to interfere with the ‘invisible hand of the free market’ and enforcing reservation feels too communist for them.

    • How delightfully naive. Companies like Energy Australia (who turned over in excess of $30B and paid no tax) are more than happy to reward their useful parliamentary idiots with lots of post-politics goodies and no doubt plenty during that can be hidden off the pecuniary interests register. it’s ideology x corruption cubed. The fix is easy but impossible.

  2. I don’t think the ALP will be of much help on the issue, its only because the coalition are so absolutely appalling that the ALP are polling reasonably well, which isn’t saying much, by all rights they should be light years ahead and not have to organise deals with the Greens.
    Despite all the similes and charm they have now, given 6 months into office and people will be slinging shit at the ALP on blogs like this.
    Nothing will change, Origin Energy are pushing forward with their pumped hydro project on the Shoalhaven, its out for tender, along with the $15 billion Snowy hydro 2.0 when compared to a combined cycle gas turbine power plant the construction time of these pumped hydro plants is extremely long and the benefits to industry in a decade when these pumped hydro plants are finished are dubious as they want to flick the on/off switch of these hydro plants to capture peak periods of the east coast spot price.

    If people want cheaper power prices, we have to build combined cycle gas turbine power stations.

  3. Solar thermal is too expensive after all.

    Port Augusta solar thermal power plant scrapped after failing to secure finance

    The original deadline was 1 Feb 2018 and it got extended to 31 May 2019 and on 31 Mar 2019, SolarReserve contacted Mr. Dan van Holst Pellekaan to say SolarReserve can not get loans to build it.

    Amusingly, Tom Koutsantonis blames Marshall’s $1.52 billion interconnector with NSW:

    Premier Marshall’s interconnector with NSW has claimed its first victim.

    The Solar Thermal Plant at PT Augusta will not proceed according to media reports.

    Rather than SA become more self sufficient the Liberals are making us dependent on an extension cord to NSW!

    So a state Labor MP says electricity is cheaper in NSW and it should stay that way! No wonder Marshall won the election. The loony left does not know maths.