The local gas prices are still at nosebleed levels.
Yet the mild summer has been enough to reduce gas-fired power use, causing wholesale electricity prices to collapse.
Recall that gas sets the marginal cost of electricity in the wholesale market.
The never ending story of gas insanity
David Llewellyn-Smith
Monday 2 February 2026
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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.
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