Albo has stepped into the energy debacle not to fix it but to silence Industry Minster Ed Husic and rescue badly damaged Resources Minister Mad King who has now returned from her WA gas platform fortress of solitude:
Given the only proposal on the table is to amend the toothless Code of Conduct there’s no hope for lower gas prices than we have right now unless global prices collapse. Global prices are easing but remain sky high:
Today’s coal and gas prices are enough to deliver a 200% increase in wholesale power prices which translates to a 60% jump in utility bills for consumers. Or, put another way, a 3% CPI shock (incl spillovers):
A few other noteworthy points from the chart:
- The ironic home of gas and coal, QLD, is being hit the hardest because it is most reliant on both.
- NSW is second worst because it is also reliant upon tradable black coal.
- VIC is doing better thanks to untradable brown coal but is still hit by gas.
- SA and TAS use mostly renewables and gas and are doing best.
However, state-by-state average yearly price growth over the next year is the opposite because the rising trends were already in place in 2021. Each state’s percentage bill shock is:
- TAS 110%
- SA 68%
- VIC 67%
- NSW 52%
- QLD 48%
These are only guesstimates and will depend upon the deal that you have with your retailer, as well as state government policies.
Unfortunately, National Electricity Market futures prices only see a very slow decline from today’s nosebleed levels:
If you want to stop the price hikes then write to your local member and tell them to do something about the gas and coal cartels.
Or start a bill strike!
