It may be that Europe has beaten Putin’s energy war, but Australia has a worse problem, energy cartels and a weak government.
The combination still leaves us with far too high energy prices.
In VIC, NSW, QLD and SA spot gas is actually selling above the $12Gj cap which tells you all you need to know about the state of offered supply.
Anecdata confirms it:
Big energy users have backed the Albanese government’s proposal for a mandatory code of conduct for gas producers, saying critics of the intervention had no idea how “dysfunctional” the east coast gas market had become.
…Mr Richards said the recent Australian Competition and Consumer Commission report highlighted the big jump in price offers for 2023 – up from $9.20 a gigajoule in 2021 to $30 a gigajoule in late 2022.
He said some EUAA members had been offered supply this year at above $60 a gigajoule.
“These prices had no relation to producers’ cost of production.”
Electricity prices remain too high as well, averaging around $90MW/h when they should be dow a round $60 with the fuel price caps:
Futures are even higher:
This is gaming under the caps. Where are Chicken Chalmers and the ACCC?
