Essay by Eric Worrall
h / t JoNova; Soaring wholesale gas prices have plunged the federal government into our new climate into its first energy supply crisis.
Global gas crisis claims first Australian casualty in trading
Via Sonali Paul
May 24, 20222: 05pm GMT + 10MELBOURNE, May 24 (Reuters) – A gas seller supplying 7% of the eastern Australian market has collapsed as global gas prices skyrocket, the first significant loss in the country as a result of the crisis. global gas supply due to sanctions against Russia for Ukraine’s aggression.
The Essential Services Commission on Tuesday suspended private gas retailer Weston Energy from the wholesale gas market for failing to meet financial security requirements and said 184 medium and large customers company will be transferred to other suppliers.
The collapse of Weston Energy underscores the energy price concerns facing Australia’s new Labor government, as it pushes to rapidly expand renewable energy to replace gas and coal. within the next 8 years.
Weston Energy CEO Garbis Simonian said gas prices have nearly tripled since the start of the year as a result of Russia’s invasion of Ukraine, which Moscow calls a “special military operation”.
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The Ukraine war may have provided the last straw, but state governments by climate activists have contributed more than their share to the gas price pain. Eg, In 2021, the Victorian government amended the state constitution to permanently ban jailbreaking.
In the tropical state of Queensland where I live, winter tends to be inconvenient. I only use gas for cooking, so the price increase doesn’t really bother me. A half hour on a 2KW wall outlet heater is enough to keep you away from the coldest of mornings.
But for NSW and Victoria, soaring gas prices mean real pain for consumers, many of whom heat their homes with gas. The southern half of Australia, including the densely populated East Coast states of Victoria and New South Wales, experiences long, wet winters, with little sunlight. Temperatures rarely drop below freezing, but the weather remains wet and cold. Even in summer the mild weather can turn freezing cold without warning – Last time I booked in highland Victoria it snowed for a week in the summer, which gives you a fair idea about the local climate.
The socialists to whom Australia was elected last Saturday will either have a razor-thin parliamentary majority, or will be forced to rule with the help of green members. So it will be interesting to see how they balance the need to keep their green allies happy, with the growing winter heating/wholesale gas price crisis on their track.
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