ACCC warns shortage of essential service may come sooner than expected
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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.
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.
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!
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.
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.
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