Essays by Eric Worrall
“… The gas industry is still behaving like a bunch of bullies and it looks like they are holding back supply,…”
Gas price cap is not the silver bullet the Albanian government had hoped for
Users say the industry behaves like a ‘swarm of bullies’ and is likely to hold back supply, while manufacturers claim the intervention has ‘paralyzed the market’
Peter Hannam Tuesday, January 17, 2023 01.00 AEDT
Tensions in the gas market have not yet eased as the Albanese government imposed a price cap late last year, with an industry group claiming supply shortages persisted during peak gas lobbying. warned the sector had become “almost paralyzed”.
one month from rare government intervention To limit the price of domestic gas to $12 a gigajoule and black coal to $125 a ton, major commercial gas users are hoping new compliance guidelines will soon be approved by the Competition Commission. Competition and Consumer Australia regulations will force suppliers to provide adequate supplies.
Andrew Richards, CEO of Energy Users Association of Australia (EUAA). “You will only retain supply if you have market power.”
…
Samantha McCulloch, chief executive of the Australian Petroleum Exploration & Production Association (Appea), said government intervention had led to a “cooling of the market” at a time when the industry needed a lot of investment. more to increase supply.
“The gas industry has sought to clarify a number of questions and practical issues regarding the implementation of the price cap, and we are still awaiting guidance from the regulator,” McCulloch said. “The lack of clarity on how the price cap should be applied coupled with the threat of perpetual gas price regulation has virtually crippled the market.”
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WUWT foresees a price cap that will lead to an availability crisis in Junewhen the Australian government started capping energy prices and expropriating energy companies.
You would have to be a socialist to believe that there could be any other possible outcome.
The only question is, since energy price ceilings are not politically desirable, What is the government’s next move?
I guess nationalization of energy companies. Several major energy assets are already owned by the government, and The Victorian Government Dan Andrews has recently moved in the direction of nationalizing energy assets. In my opinion, it is only a matter of time until the left-wing radicals running the Australian Federal Government attempt to completely nationalize Australia’s energy sector.
Given the Australian government’s track record of expropriating and trampling property rights in the process of imposing energy price ceilings, I would guess current owners of Australian energy assets would not be happy with any of these payments. What compensation is offered, if the plant and its equipment are nationalized.
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