ACCC warns shortage of essential service may come sooner than expected

As we settle into the cooler months, many are reaching for the thermostat to keep homes warm and cosy.

However, a stark warning from the Australian Competition and Consumer Commission (ACCC) suggests residents may need to brace themselves for more than just the winter chill.



The ACCC has raised the alarm that millions of Australians, particularly those on the East Coast, could face gas shortages much sooner than anticipated.

In their latest gas inquiry update, the ACCC has cautioned that the states and territories in the southeast, including the Australian Capital Territory, New South Wales, South Australia, Tasmania, and Victoria, may experience a winter shortfall as early as 2025.


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The ACCC alarmed residents of the East Coast that they could face gas shortages sooner than expected. Credit: Shutterstock


This is a year earlier than previous predictions, and the implications are significant.

‘While there is forecast to be an overall surplus next year, there is a risk of a shortfall in the third quarter when demand for energy is typically higher,’ the report said.

Gas will need to be transported from Queensland to the southern regions to avoid local shortages.

The ACCC has also acknowledged that the two-year extension of operations at the Eraring Power Station in New South Wales has somewhat mitigated the risk.



However, without new gas supply sources, the East Coast market could face shortages as early as 2027.

‘This predicted shortfall is likely to take place one year earlier than what previous reports have forecast, with the extended operation of Eraring Power Station improving the outlook for 2027 but not altering the fundamental trajectory of supply,’ the report said.

ACCC Commissioner Anna Brakey has highlighted this as a 'critical opportunity' for the government to secure gas supply, especially with liquefied natural gas export permits set to expire in the 2030s.

The looming deadline presents a chance for policymakers to take decisive action to ensure gas availability for domestic use.



Interestingly, the report also noted that gas prices in the East Coast market have been on a downward trend since mid-2022.

This may offer some temporary relief to consumers, but it does not address the long-term supply concerns.

The Australian Energy Market Operator (AEMO) has echoed the ACCC's concerns, warning that the recent cold snap has put additional strain on the system, with pipelines from Queensland operating beyond their capacity.

‘Gas producers are doing everything they can to meet the heightened demand and to keep Australian households warm and businesses running,’ Australian Energy Producers Chief Executive Samantha McCulloch assured.
Key Takeaways
  • The ACCC has warned of a possible gas shortage on Australia's east coast as early as 2025, earlier than previously forecasted.
  • This winter shortfall risk is driven by higher energy demands and may require gas transportation from Queensland to other southeastern states and territories.
  • Despite the extended operation of the Eraring Power Station improving the outlook for 2021, fundamental issues with supply trajectory remain.
  • There is an opportunity for the Australian government to secure future gas supply with liquefied natural gas export permits expiring in the 2030s amid recently declining gas prices in the East Coast market.
Have you noticed any changes in your gas supply or prices? Are you taking any steps to prepare for potential shortages? Share your thoughts with us in the comments below!
 
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There is enough gas in this country to supply us indefinitely however they man's a lot more money by selling it overseas so they (the government and the gas companies) don't care if we have to tighten the belt, by pretending there is a shortage.
Agree, I was told by an expert, that it because they can sell it a higher rate oversea. So, if they reduce sending overseas and up what they keep here there would be no problem.
 
Why when we are selling so much gas to overseas conglomerates, are Australians being warned about the shortage of gas?? Is it that the powers to be are happy to let the citizens go without a vital method of heating their homes, so others can line their pockets at the expense of all Australians????
 
My last Gas bill was a little bit higher than the previous quarter, but I accidentally let the shower very slowly drip for about 24 hours. It will be interesting to see how much my next bill is. Mine is normally more supply charge than actual gas usage. I'm not sure how many power stations in SA are powered by gas.
 
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Wot can one expect when we have a complete & utter "DING BAT RAT BAG" in Chris., BOWEN running the Energy portfolio. Wot a "DEAD HEAD DILL BRAIN" he is.

As we all know, we've the best coal, gas & uranium deposits here in Good Old Aussie. But where is it going ? All off shore in exports, as we know. Japan for instance has Mountains of our coal stock piled in their ocean waters for their industry & such. All of our uranium gets parcelled up & sent off as Yellow Cake, exported. How much of our natural gas is exported as well ?

How bloody stupid are the "DOPES" who advocate & partake in protests of our natural resources ? They wouldn't have a clue or half a Brain between any of 'em. If they did, they'd be getting around lopsided. They are just BRAIN DEAD IDIOTS.

If our gov., isn't disposed off at the next election, get a supply of candles in & be at the ready. I remember the blackouts well in the late 40's & 50's as with many, many others.

Reminds me of a little what am I riddle. i.e ., The longer I stand the shorter I grow, what am I ? A candle.
 
Hi there, Richar12. You have a Great Name.

I reckon with wot is now happening & certain decisions Albo is making, along with other disasters which abound him of very recent days, his legs are shaking really, really bad. I don't know how he manages to stand up without doing a "Joe". Hopefully it may be a matter of, "So Long Albo". I for one, is as happy as all shit that your idiotic uni., dys are now coming home to roost & biting you Big Time on the bum. You deserve it.
 

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