When the deeply conflicted Saul Kavonic is the go-to guy for media energy analysis, no country could survive.
His analysis here includes:
- ALP broke the gas market by intervening in 2022.
- LNP lost the election owing to gas reservation policies.
- We need a pro-business and pro-market approach to energy.
Not all of this is horseshit. It would be great to have a competitive private market for energy and Labor did a terrible job in 2022.
However, what we have instead is a gas export cartel that sets prices wherever it wants, which includes vertically integrated electricity producers that do much the same.
What exactly does Saul want to deregulate here?
A pro-market response to energy requires much deeper intervention, not less. The gas cartel must be broken up. Monopoly assets must all be heavily regulated on a cost-plus model or nationalised. Vertically integrated businesses must divest one end of the business.
The ALP has caused high gas prices since 2022 by failing to regulate the cartel harshly enough.
Dutton’s gas reservation policy undoubtedly saved the LNP seats as Trump handed the election to Labor. Resolve Political Monitor:
The poll found that 75% of voters supported a domestic gas reservation policy to ensure a steady supply of gas to households and businesses, with 22% of people undecided and just 4% opposed.
The only state with a domestic gas reservation policy is Western Australia, which introduced a policy that reserves 15% of gas for domestic use in 2006. Despite warnings at the time it would hamper the industry in that state, gas exports from WA have boomed.
75% of Australians agree on nothing…except the domestic reservation of gas!
Just adopt Peter Dutton’s gas policy, and most of our energy problems are solved.
Including wasted energy listening to Saul Kavonic.
