The all-but-invisible Australian energy shock continues today with zero reporting in the iMSM as usual.
The gas price has fallen back to $18.15Gj, only 50% above Albo’s supposed price cap of $12Gj. The same gas is available in Europe for $14.72Gj.
Electricity prices are really pinning their ears back now with the 6-day moving average at $184MW/h, 270% above pre-Albo averages:
These prices were unthinkable three years ago. The Ukraine War price shock has the political economy punch drunk.
For all intents and purposes, utility bills will double if these prices are sustained. Any Budget bill relief will be wiped out and replaced by a new inflation shock of around 4% added to CPI.
This will push the RBA cash rate to 5% and trigger a second-round house price crash.
I can’t see how any of this is in the Albanese Government’s interests.
Nor do I know why nobody wants to talk about it. What I do know, is that those that understand are now deliberately hiding the issue.
The uber-toxic AFR is the prime example:
Andrew Forrest’s Squadron Energy intends to develop several gas power stations across the eastern states, starting in Dubbo, NSW, as part of a multibillion-dollar strategy to build an integrated supply business this decade to sell clean energy to business customers.
…Mr Willoughby, the former head of CWP Renewables, which Squadron bought in a $4 billion-plus deal in December, said the combined assets created an expanded renewable portfolio with access to all-important “firming” fuel through Squadron’s LNG import terminal under construction in Port Kembla in NSW.
…While some gas industry sources doubt the economic viability of LNG import terminals after Labor’s price controls on domestic gas on the east coast, Mr Willoughby said it was not a problem for Port Kembla.
The AFR knows full well that the price controls are wrecked and are not a problem for anybody. It is now actively shielding Albo’s failed policy, the gas cartel, and Andrew Forrest.
Can the latter make any difference?
Price differentials between Australian and international gas prices like the one we have today may narrow with Twiggy’s LNG imports. It probably depends upon the opening of more terminals to force him to compete.
But, the clue about what will really happen is in the phrase “build an integrated supply business”. That should read ‘vertically integrated’ which is, of course, just another phrase for monopoly pricing power.
Is another monopolist the answer to a cartel? Especially when his proposal is to import very expensive gas from the US while very cheap local gas pours outwards to China via the cartel?
Literally, there is not as emerging market on earth as corrupt as Fuckedstralia.
