Far removed from the turmoil unfolding in the eastern states, Western Australia is enjoying some of the cheapest and most stable energy prices in the developed world.
"Firstly, [it has a] fundamentally different market design."So you don't see the ups and the downs you have on the east coast."New federal Energy Minister Chris Bowen is meeting his state and territory counterparts today
But he argued that the importance of gas to WA's economy – and to a lesser degree Australia's – meant it was imperative to have affordable supplies., where a lack of domestic obligations for gas producers had helped lead to shortages and prices that some claim could send manufacturers to the wall"And … you've had various east coast state governments put moratoria on gas exploration and production to varying degrees.
"Coal is about 40 per cent of the market here in Western Australia compared with over 60 per cent of the market on the east coast," Mr Johnston said.WA Energy Minister Bill Johnston says the state is reaping the benefits of hard decisions. Unlike the eastern states, where generators are only paid for the power they produce, in WA they are also paid for being available when they are needed via what's known as a capacity market.
"That is the promise to deliver and the availability to deliver and payments that recognise the value of the delivery."If people deliver on the promise, they get to keep that payment and they get revenue as well on a spot-price basis for energy that's actually provided.Look west, Dimery urges
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