Australia’s east coast gas crisis may have escalated quickly, but its roots took hold months back and it shows little sign of abating.
Australia’s east coast gas crisis may have escalated quickly, but its roots took hold months back and it shows little sign of abating, threatening to prolong the impact on households, businesses and the country’s $2 trillion economy.as reserves at Lochard Energy’s Iona storage plant in Waarre, Victoria, were on course to fall to dangerously low levels. The plant is the largest independent provider of storage services to the east coast gas market.
“We are clearly not out of the woods. And most energy users have not yet felt the cost impact of recent necessary emergency measures, nor of the less dramatic but more sustained rise in wholesale electricity and gas prices that will last for years. Serious pain is coming for industrial energy users and their customers,” said Innes Willox, chief executive of the Australian Industry Group.
Coal is Australia’s largest source of electricity, accounting typically for more than two-thirds of all generation. However, soaring global coal prices, several plant outages both planned and unplanned, floods – that slowed the transport of the commodity – and cold weather that fuelled demand for heating have meant that coal’s role in electricity generation dipped and the role of gas altered drastically.
Predictably demand for Victorian supplies jumped and supplies at Iona fell quickly. AEMO said Iona storage inventory had reduced by an average daily rate of about 200 terajoules since July 11, falling to 10.2 PJ on Monday. Earlier this year, wholesale electricity prices rose so much that they triggered a price cap of $300 a megawatt-hour. This was well below the price generators were earning at the time, and they responded by withdrawing offers of supply.
The Australian Energy Markets Commission, the rule-making body for the industry, said on Thursday it would fast-track consideration of a proposal to increase the administered price cap to $600 a megawatt-hour from $300/MWh.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Weather warnings issued for two states as east coast low builds off coastA broad swathe of coastline is bracing, and experts are warning there may not be an end in sight to the wet weather.
Read more »
Weather warnings issued for two states as east coast low builds off coastSERIOUS SHOVELING: A hard-working gentleman has been captured trying to keep up with the wild weather on the Gold Coast this morning. The committed worker could be seen attempting to shovel sand during gale force winds of up to 65km/h. 9News MORE:
Read more »
South-east Queensland working towards introducing flying taxisSouth-east Queensland could soon be home to automated choppers programmed to take patrons to their destinations by air as part of a push to bring flying taxis to the area. 9News
Read more »
Dangerous surf and 'a month's worth of rain' tipped as low swirls off south-east Queensland coastWaves up to 6 metres forming off Brisbane, as an east coast low churns up 'life-threatening' conditions in Queensland's coastal waters, according to the Bureau of Meteorology.
Read more »
Man dies in flash flooding as heavy rain, strong winds hit south-east Queensland and northern NSW47-year-old’s car swept into flood waters before dawn as dangerous weather pummels region
Read more »