The gas cartel has returned to its strategy from the good old days. It is no longer gouging consumers, instead focussing on industry.
This is a political not market strategy.
The spot price that drives wholesale electricity prices has crashed:
This is far below the $20Gj available in the Asian export market. AS a result, electricity prices have also ebbed into traditional ranges below $50MW/h:
However, futures are unconvinced as the market awaits the fate of several large coal-fired power stations
The good news does not extend to industry:
“Even the largest gas users often find themselves at a severe disadvantage that has meant they have no choice but to pay more than $30 a gigajoule for gas when they used to pay $5,” Richards said.
“Some of the behaviour of the gas industry can only be described as predatory,” he said.
However, energy users told a Senate hearing into the code’s effectiveness on Thursday that it should be extended to include gas retailers and not just cover gas producers selling into the wholesale market.
Extend the code. Gas retailers are gouging, given the spot price.
