Albo’s cowards lock-in immense energy shock

Here is your new gas supply agreement with the Evil Gas Cartel:

And from Annex C on pricing guidelines:

So, it is clear that both the Agreement and Code of Conduct use the JKM export netback price as the baseline for “competitive” offers in the local market.

Here are JKM futures:

And converted into AUD:

Today’s east coast gas price is $23Gj and the Albo’s cowards just made it entirely acceptable for the Evil Gas Cartel to make any offer to local consumers of gas up to roughly $80Gj.

That price will deliver an electricity price of roughly 600MW/h. It will constitute a gas price shock of 1000% and an electricity price shock of 1200% versus pre-Ukraine prices.

This will lift the CPI by 13% over one year and more like 20% over two with spillovers.

I have absolutely no idea how hard the Evil Gas Cartel will push this but Albo’s cowards have just given them carte blanche to do so.

I hope the good minister got the promise of a decent sinecure post-politics.