Albo’s summer energy shock explodes


Like clockwork. If you won’t supply enough gas, then the power network melts down into a cascade of baseload failures as coal power ages:

Daily wholesale power prices are now frequently double those of energy-poor Europe.

The quarterly moving average of wholesale power costs is 80-90% higher than it should be.


Why? When demand is high and the wind is weak, we use more gas power, such as the last few days:

Gas sets the price for the entire grid for longer periods when it is double or triple the price it should be owing to excessive East Coast LNG Cartel exports.


Australian gas prices are 20% lower in Asia and Europe than at home.

Canberra has the policy to fix this in the Australian Domestic Gas Security Mechanism (ADGSM). But, it is in the hands of the gas cartel captured Resources Minister Madeleine King.

So she does nothing, and you pay.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.