[The Conversation]

Cheaper Gas And Electricity Prices Are Within Australia's Hands – Here's What To Do​

Virtually every country in the world is facing a crisis in energy costs, yet while other countries can’t do much about it, Australia can.

Australia could get its east coast gas producers to supply the domestic gas market for less than A$10 a gigajoule. Earlier this year, prices were more than $40 a gigajoule, and now sit at $25-30 a gigajoule.

Tuesday’s budget factored in retail electricity price rises of more than 50% over two years. The increases in retail gas prices exceeded 40%.

Outlining the budget on Tuesday, Treasurer Jim Chalmers said any responsible government facing these kinds of price hikes needed to “consider a broader suite of regulatory interventions” than in the past.

Chalmers had “more work to do” and would work with the states.

Here is the key step I think should be taken.

To restrain electricity prices, cut gas prices​

The quickest way to get electricity prices down is to significantly lower the cost of gas. Gas generators come online after cheaper forms of generation have already been pressed into service, and so help set the final price charged.

Getting gas prices below $10 a gigajoule would also help households that are facing crippling gas bills, as well as industries that rely on sensibly priced energy for their existence including Australia’s glass, paper and fertiliser industries.

Once those industries close, they are unlikely to return.

Here’s what’s been done so far.

The Turnbull, Morrison and recently the Albanese governments have each reached agreements with the three liquid natural gas producers operating out of Gladstone in Queensland that together control around 90% of east coast reserves.

‘Sufficient supply’ isn’t affordable supply​

The agreements require the supply of sufficient gas to meet the needs of east coast gas consumers.

For a while they worked to reduce then-high domestic prices to sensible levels, because international prices were low. But now international prices have climbed to multiples of usual levels, agreements to supply without specific reference to prices are no longer enough.

An agreement to supply “sufficient” quantities of gas at $25-40 per gigajoule is an agreement to not supply much. After industries close, supply will be “sufficient” for the remaining users who can afford it, but it won’t be what we want.

We need to get the east coast liquefied natural gas (LNG) producers to supply sufficient gas to the east coast at prices below $10 a gigajoule. They would continue to make a profit at those prices, albeit much less than otherwise.

As it happens, the Commonwealth has the power to get such commitments, because it has the power to stop exports. That power gives it complete leverage.

We need to be clear on two points.

First, there is no suggestion here that the LNG producers’ long-term contracts are at risk. Asian buyers need not be concerned. All three LNG projects were underwritten by long-term contracts at fixed prices.

What we are talking about is the gas the three producers have available beyond their need to service these long contracts. This gas can either be exported to the spot, or short-term, market at very high prices or sold domestically.

They should be told they can only export gas to the currently lucrative international spot market if they sell sufficient gas domestically to get prices clearly below $10 a gigajoule.

Other exporters reserve gas​

Second, what I am suggesting is akin to what all other gas exporting countries do.

Australia has by far the highest domestic gas prices of any gas exporting country. No other country would tolerate its gas being exported while its domestic market is paying the same high prices as international customers.

The gas companies need to come to the party, either to earn their “licence to operate” or to avoid the threat of export controls.

If they know the threat of export controls is real, I believe they will do what’s necessary without the need to actually control exports.

A final point: there can be no argument about “sovereign risk”, the idea that foreign companies will no longer do business with Australia if it changes the rules.

The long-term gas exporting contracts would remain intact. Australia would simply be aligning itself with all other gas exporting nations – and, by the way, with Western Australia, which has long looked after its residents and businesses by reserving gas to ensure reasonable domestic prices.

This article was first published on The Conversation, and was written by Rod Sims Professor in the practice of public policy and antitrust, Crawford School of Public Policy at Australian National University

 

[JaniahHopkins]

Hey there. Just wanna check what changes in gas prices have been since then. And, btw, I'd also be grateful if you guys advised me about a good workover rig drilling.

 

[KaneBarnett]

Hey, there, guys! I'm new here but not new to the gas industry, so I had to share my 2 cents. I'm pretty sure we're all feeling the pain right about now. It's crazy how much they can fluctuate. As for a workover rig drilling service, you can reach out to Upet. They've got some seriously skilled crews and top-of-the-line equipment that can handle any job. Hope this helps, and let me know if somebody has any other recommendations.

 

[Gsr]

Time for the current government to get out the big stick and use it if necessary. Don’t keep blaming previous governments, YOU ARE IN POWER NOW, it is your responsibility.

 

[riskydave]

Cheaper Gas And Electricity Prices Are Within Australia's Hands – Here's What To Do​

Virtually every country in the world is facing a crisis in energy costs, yet while other countries can’t do much about it, Australia can.

Australia could get its east coast gas producers to supply the domestic gas market for less than A$10 a gigajoule. Earlier this year, prices were more than $40 a gigajoule, and now sit at $25-30 a gigajoule.

Tuesday’s budget factored in retail electricity price rises of more than 50% over two years. The increases in retail gas prices exceeded 40%.

Outlining the budget on Tuesday, Treasurer Jim Chalmers said any responsible government facing these kinds of price hikes needed to “consider a broader suite of regulatory interventions” than in the past.

Chalmers had “more work to do” and would work with the states.

Here is the key step I think should be taken.

To restrain electricity prices, cut gas prices​

The quickest way to get electricity prices down is to significantly lower the cost of gas. Gas generators come online after cheaper forms of generation have already been pressed into service, and so help set the final price charged.

Getting gas prices below $10 a gigajoule would also help households that are facing crippling gas bills, as well as industries that rely on sensibly priced energy for their existence including Australia’s glass, paper and fertiliser industries.

Once those industries close, they are unlikely to return.

Here’s what’s been done so far.

The Turnbull, Morrison and recently the Albanese governments have each reached agreements with the three liquid natural gas producers operating out of Gladstone in Queensland that together control around 90% of east coast reserves.

‘Sufficient supply’ isn’t affordable supply​

The agreements require the supply of sufficient gas to meet the needs of east coast gas consumers.

For a while they worked to reduce then-high domestic prices to sensible levels, because international prices were low. But now international prices have climbed to multiples of usual levels, agreements to supply without specific reference to prices are no longer enough.

An agreement to supply “sufficient” quantities of gas at $25-40 per gigajoule is an agreement to not supply much. After industries close, supply will be “sufficient” for the remaining users who can afford it, but it won’t be what we want.

We need to get the east coast liquefied natural gas (LNG) producers to supply sufficient gas to the east coast at prices below $10 a gigajoule. They would continue to make a profit at those prices, albeit much less than otherwise.

As it happens, the Commonwealth has the power to get such commitments, because it has the power to stop exports. That power gives it complete leverage.

We need to be clear on two points.

First, there is no suggestion here that the LNG producers’ long-term contracts are at risk. Asian buyers need not be concerned. All three LNG projects were underwritten by long-term contracts at fixed prices.

What we are talking about is the gas the three producers have available beyond their need to service these long contracts. This gas can either be exported to the spot, or short-term, market at very high prices or sold domestically.

They should be told they can only export gas to the currently lucrative international spot market if they sell sufficient gas domestically to get prices clearly below $10 a gigajoule.

Other exporters reserve gas​

Second, what I am suggesting is akin to what all other gas exporting countries do.

Australia has by far the highest domestic gas prices of any gas exporting country. No other country would tolerate its gas being exported while its domestic market is paying the same high prices as international customers.

The gas companies need to come to the party, either to earn their “licence to operate” or to avoid the threat of export controls.

If they know the threat of export controls is real, I believe they will do what’s necessary without the need to actually control exports.

A final point: there can be no argument about “sovereign risk”, the idea that foreign companies will no longer do business with Australia if it changes the rules.

The long-term gas exporting contracts would remain intact. Australia would simply be aligning itself with all other gas exporting nations – and, by the way, with Western Australia, which has long looked after its residents and businesses by reserving gas to ensure reasonable domestic prices.

This article was first published on The Conversation, and was written by Rod Sims Professor in the practice of public policy and antitrust, Crawford School of Public Policy at Australian National University

What a load of rubbish!

 

[Mina vriesekolk]

Yes, I agree , they always blame the previous government but Labour promised cheaper electricity rates and that is not happening.
I am happy with my solar panels and get a credit every time , even in the hot Summer with the air-con on most of the time .
I do cook on gas and we bought a 9 kg camping gasbottle , filled it last year for approx $ 27.- , this is nearly a year ago and the bottle is still going .
If you have the big gas bottles , you have to pay rent on top of it and gas get delivered. A lot dearer .
So I am not complaining , but I feel for the people who have to pay full price.

 

[Kelpie]

Time for the current government to get out the big stick and use it if necessary. Don’t keep blaming previous governments, YOU ARE IN POWER NOW, it is your responsibility.

The point is that there some states in Australia (I.e, NSW and VIC) that have stopped all the gas drillings. I was a shareholder in a company which had one of the biggest, if not the biggest acreage of gas. It was within the Lismore and surrounding areas. It was drilled and the gas was proved but, just before production, the residents, the knitting Nannies, and all the people with these ideas of closing everything down for the sake of doing it, put so much pressure on the Government at the time to close it down. The company received a pitiful payment from the Governement which covered not even the minimum amount to recover costs, and was forced to leave. Don't forget that Politicis plays a very strong hand where politicians don't think much about the consequences they create to their constituents and all they care is to get elected and get a place in the Govt buliding.
This gas was all going to be sold in NSW and for Domestic use but that didin't matter for the Politician which was worried about loosing his/hers seat.
Now we are complaining and whinging about it but for what. We are the ones to bear the blame. We got the gas and VIC has plentiful of it but we are not allowed to touch it. And who are the biggest whingers of them all.??
THINK ABOUT IT.

LET THE GOVERNMENT ISSUE SOME LICENCES WHERE THE GAS IS WITH THE PROVISION THAT THAT GAS HAS TO REMAIN SOLELY IN AUSTRALIA OR AT LEAST 30 TO 40% FOR DOMESTIC AND INDUSTRIAL USE AND IT WILL SOON BE ALL OVER.
W.A. DID IT SO WHY CAN'T THE OTHER STATES DO IT TOO.?

AND THAT IS CALLING A SPADE A SPADE.

 

[Kelpie]

The point is that there some states in Australia (I.e, NSW and VIC) that have stopped all the gas drillings. I was a shareholder in a company which had one of the biggest, if not the biggest acreage of gas. It was within the Lismore and surrounding areas. It was drilled and the gas was proved but, just before production, the residents, the knitting Nannies, and all the people with these ideas of closing everything down for the sake of doing it, put so much pressure on the Government at the time to close it down. The company received a pitiful payment from the Governement which covered not even the minimum amount to recover costs, and was forced to leave. Don't forget that Politicis plays a very strong hand where politicians don't think much about the consequences they create to their constituents and all they care is to get elected and get a place in the Govt buliding.
This gas was all going to be sold in NSW and for Domestic use but that didin't matter for the Politician which was worried about loosing his/hers seat.
Now we are complaining and whinging about it but for what. We are the ones to bear the blame. We got the gas and VIC has plentiful of it but we are not allowed to touch it. And who are the biggest whingers of them all.??
THINK ABOUT IT.

LET THE GOVERNMENT ISSUE SOME LICENCES WHERE THE GAS IS WITH THE PROVISION THAT THAT GAS HAS TO REMAIN SOLELY IN AUSTRALIA OR AT LEAST 30 TO 40% FOR DOMESTIC AND INDUSTRIAL USE AND IT WILL SOON BE ALL OVER.
W.A. DID IT SO WHY CAN'T THE OTHER STATES DO IT TOO.?

AND THAT IS CALLING A SPADE A SPADE.

And don't forget that we need export to balance the foreign paymens and Govt Royalties for, if not, our economy will do down the spiral and we will all suffer enormously. Worse than what we are going thorugh now.
That is economics 101.

 

[Kelpie]

Time for the current government to get out the big stick and use it if necessary. Don’t keep blaming previous governments, YOU ARE IN POWER NOW, it is your responsibility.

Agree. All they have been doing since they got in power is to blame the previous Govt when they knew all along how much debt we had. They said they were going to fix it all and it is about time they start doing what they said publicly during electioneering.
Stop listening to what the Greenies are telling them to do and start doing something positive.
Blowing power stations up when we have notihing to fill the gap to keep lower energy prices is not the way to go.
Even in Europe where the Greens have more voice and control than here in Asutralia they haven't blown the Coal Power Stations up, they mothballed them to keep them just in case.

 

[Kelpie]

Yes, I agree , they always blame the previous government but Labour promised cheaper electricity rates and that is not happening.
I am happy with my solar panels and get a credit every time , even in the hot Summer with the air-con on most of the time .
I do cook on gas and we bought a 9 kg camping gasbottle , filled it last year for approx $ 27.- , this is nearly a year ago and the bottle is still going .
If you have the big gas bottles , you have to pay rent on top of it and gas get delivered. A lot dearer .
So I am not complaining , but I feel for the people who have to pay full price.

But, how are you going in winter with the ariconditioning.?
That is the $64k dollars question. My bill went form about $8 or 9 hundred dollars to more than $2500.00, (Have to keep it going due to my wife's health), and the Labour told us we are going all to save about $275 in power bills.
As for the solar panles, well I have learnt about solar panels many years ago in the hard way by being very unreliable. Too long a story to writing it all in full details.

 

[mylittletibbies]

Sorry to hear you have had a bad experience with your solar. Can't complain about my 6.6 system, my last bill was $55.32, never goes much higher than about $80.
A very good return on my investment.

 

[Gsr]

We also have solar panels and a battery, have had no issues with the panels, twice our battery has failed due to a fault in a connecting part, both times the repair has been completed free of charge within a week. We have a lifetime warranty on all the battery components. The company we bought it through are extremely helpful and contact us regularly to check if we have any issues. Our bills are in credit in autumn and spring but we pay from $100/$200 for our summer and winter bills as we have a ducted air conditioner which we use whenever we need to.

 

[Shane/#]

Cheaper Gas And Electricity Prices Are Within Australia's Hands – Here's What To Do​

Virtually every country in the world is facing a crisis in energy costs, yet while other countries can’t do much about it, Australia can.

Australia could get its east coast gas producers to supply the domestic gas market for less than A$10 a gigajoule. Earlier this year, prices were more than $40 a gigajoule, and now sit at $25-30 a gigajoule.

Tuesday’s budget factored in retail electricity price rises of more than 50% over two years. The increases in retail gas prices exceeded 40%.

Outlining the budget on Tuesday, Treasurer Jim Chalmers said any responsible government facing these kinds of price hikes needed to “consider a broader suite of regulatory interventions” than in the past.

Chalmers had “more work to do” and would work with the states.

Here is the key step I think should be taken.

To restrain electricity prices, cut gas prices​

The quickest way to get electricity prices down is to significantly lower the cost of gas. Gas generators come online after cheaper forms of generation have already been pressed into service, and so help set the final price charged.

Getting gas prices below $10 a gigajoule would also help households that are facing crippling gas bills, as well as industries that rely on sensibly priced energy for their existence including Australia’s glass, paper and fertiliser industries.

Once those industries close, they are unlikely to return.

Here’s what’s been done so far.

The Turnbull, Morrison and recently the Albanese governments have each reached agreements with the three liquid natural gas producers operating out of Gladstone in Queensland that together control around 90% of east coast reserves.

‘Sufficient supply’ isn’t affordable supply​

The agreements require the supply of sufficient gas to meet the needs of east coast gas consumers.

For a while they worked to reduce then-high domestic prices to sensible levels, because international prices were low. But now international prices have climbed to multiples of usual levels, agreements to supply without specific reference to prices are no longer enough.

An agreement to supply “sufficient” quantities of gas at $25-40 per gigajoule is an agreement to not supply much. After industries close, supply will be “sufficient” for the remaining users who can afford it, but it won’t be what we want.

We need to get the east coast liquefied natural gas (LNG) producers to supply sufficient gas to the east coast at prices below $10 a gigajoule. They would continue to make a profit at those prices, albeit much less than otherwise.

As it happens, the Commonwealth has the power to get such commitments, because it has the power to stop exports. That power gives it complete leverage.

We need to be clear on two points.

First, there is no suggestion here that the LNG producers’ long-term contracts are at risk. Asian buyers need not be concerned. All three LNG projects were underwritten by long-term contracts at fixed prices.

What we are talking about is the gas the three producers have available beyond their need to service these long contracts. This gas can either be exported to the spot, or short-term, market at very high prices or sold domestically.

They should be told they can only export gas to the currently lucrative international spot market if they sell sufficient gas domestically to get prices clearly below $10 a gigajoule.

Other exporters reserve gas​

Second, what I am suggesting is akin to what all other gas exporting countries do.

Australia has by far the highest domestic gas prices of any gas exporting country. No other country would tolerate its gas being exported while its domestic market is paying the same high prices as international customers.

The gas companies need to come to the party, either to earn their “licence to operate” or to avoid the threat of export controls.

If they know the threat of export controls is real, I believe they will do what’s necessary without the need to actually control exports.

A final point: there can be no argument about “sovereign risk”, the idea that foreign companies will no longer do business with Australia if it changes the rules.

The long-term gas exporting contracts would remain intact. Australia would simply be aligning itself with all other gas exporting nations – and, by the way, with Western Australia, which has long looked after its residents and businesses by reserving gas to ensure reasonable domestic prices.

This article was first published on The Conversation, and was written by Rod Sims Professor in the practice of public policy and antitrust, Crawford School of Public Policy at Australian National University

Australia should be taking royalties from these gas companies but back in the the Howard government era gave them an open hand to rape and pillage Australia's resources for pittance these companies make billions and send it offshore

 

[Kelpie]

Sorry to hear you have had a bad experience with your solar. Can't complain about my 6.6 system, my last bill was $55.32, never goes much higher than about $80.
A very good return on my investment.

Look, I know a little about solar panles as I used to sell them many years ago when I owned a communication business. More times than not I had to send some of my staff to the sited with new batteries to keep the systems going because the solar panles were failing and the windmill generator on site weren't sufficient to cope with demand. I was loosing money after money.
Now tell me how can you cope with a 6.6 Kws system when a refrigerator can take up to 2 Kws per day alone.?
I told you and the forum about the power costs to me when it jumped more than three times simpy because i was using the airconditioner during the winter month.
How many solar panels would I need and how reliable are they to satisfy my needs.?
From my past experience with them I wil have two chances..
1) Buckleys, and
2) None.

 

[Kelpie]

We also have solar panels and a battery, have had no issues with the panels, twice our battery has failed due to a fault in a connecting part, both times the repair has been completed free of charge within a week. We have a lifetime warranty on all the battery components. The company we bought it through are extremely helpful and contact us regularly to check if we have any issues. Our bills are in credit in autumn and spring but we pay from $100/$200 for our summer and winter bills as we have a ducted air conditioner which we use whenever we need to.

Good luck to you.
I have started to turn the airconditioner on day before yesterday and it is on on automatic full time. I can't do it otherwise due to my wife's health. HER HEALTH IS MORE IMPORTANT TO ME THAN THE MONEY. After all, as they say you can't take it with you, nor have I seen a funeral pulling up at a bank on the way to the cemetery.

Now and in closing, can you pelase tell me what your cost will be to get rid and/or dispose of those solar panels when the lifespan of your solar panels is finished.
SHOCK HORROR................................I bet your supplier didn't tell you that.
Just ask him for curiosity sake and ask him who's cost it will be.

 

[Kelpie]

We also have solar panels and a battery, have had no issues with the panels, twice our battery has failed due to a fault in a connecting part, both times the repair has been completed free of charge within a week. We have a lifetime warranty on all the battery components. The company we bought it through are extremely helpful and contact us regularly to check if we have any issues. Our bills are in credit in autumn and spring but we pay from $100/$200 for our summer and winter bills as we have a ducted air conditioner which we use whenever we need to.

You wrote: ""(We have a lifetime warranty on all the battery components.)""

Interesting isn't it.
And what about a lifetime warranty for the solar panels.??

Do you know what the costs are to dispose of them when their lifespan is finished.?
Do you know what it cost to dispose of a windmill generator.?? SHOCK HORROR. I would like to have that money to dispose of those windmills and to repair them in my Bank.

And that is the $64k dollars question which no one tells you when they sell you the Chinese Product.

That is what I made clear to all the forum in my previous post.

 

[Kelpie]

Do you know what material they are using to build those solar panels.?
Do you know how toxic that material is and where the majority of it comes from.?
Could that be the case that the costs of disposal of those solar panels might be so prohibitive hence why no one is talking about it.?
Do you know that children labour is used to mine that material.?
Do you know that the majority of that material is mined in a very poor African Country and where the Chinese owns most of it.?
Do you know how many tens of thousand of those children are dying because of it.?

Oh YES. We (Someone posting here anyway) are complaining about a rodent and some other pests which are dying because they get caught inhumanely BUT NO ONE IS TALKING ABOUT HOW INHUMANE IT IS FOR THOSE CHILDREN IN AFRICA TO MINE THAT EXTREMELY TOXIC MATERIALS TO BUILD THE SOLAR PANELS AND DYING FROM IT.

DOES IT MATTER TO YOU ALL.?? MAYBE NOT.!! Animals to some are more important than someone's life.

THERE ARE TIMES THAT ONE HAS TO WONDER.!!!

 

[mylittletibbies]

If you knew all this,and you worked in the industry, why did you instal your own panels in the first place.
In your original post you were complaining about them being unreliable.
Well I'm sorry if you think I am lying about my power bill, why the hell would I do that. Maybe it's because I live in WA and we don't have dozens of suppliers to deal with, maybe it's beçause I live in the wheat belt and we have very hot, dry weather or maybe it's because I don't waste power.
Just because you obviously have a lot of problems with the solar industry doesn't give you the right to insinuate that I am lying.
And just because you say you have all this knowledge about the solar industry, well most of us don't and perhaps you should aim your rant where it might do some good .
The good people who follow this site do not deserve to be accused of being uncaring.etc, putting their pets before people

 

[Kelpie]

If you knew all this,and you worked in the industry, why did you instal your own panels in the first place.
In your original post you were complaining about them being unreliable.
Well I'm sorry if you think I am lying about my power bill, why the hell would I do that. Maybe it's because I live in WA and we don't have dozens of suppliers to deal with, maybe it's beçause I live in the wheat belt and we have very hot, dry weather or maybe it's because I don't waste power.
Just because you obviously have a lot of problems with the solar industry doesn't give you the right to insinuate that I am lying.
And just because you say you have all this knowledge about the solar industry, well most of us don't and perhaps you should aim your rant where it might do some good .
The good people who follow this site do not deserve to be accused of being uncaring.etc, putting their pets before people

To correct you, let me tell you that I haven't installed any solar panels on the roof of my house and never will.
Reason being that, as I stated before, when the solar panels were introduced as the next best thing since sliced bread I installed some of them on my communications stations sites and in some clients communications sites as well. As I said they proved totally unreliable hence why I stopped selling/supplying them to my customers and ever since I went the other way. I built my business with customers being the utmost priority not just selling products for the sake of making a dollar.
If you only knew how many times we had to ride on horse back and/or with 4WD with chains on in snowy weather to go to he top of he hills to replace batteries or having to charter helicopters to go and replace batteries you wouldn't talk like that. Hence why I will repeat it time and time again, THEY ARE VERY VERY UNRELIABLE AND I WILL NOT USE THEM, nor recommend them to anyone...PERIOD.!
As for the rest of your post, well it is just a matter of differing opinions. Yours against mine.
And just to let you know I live on a property as well (one of a few) and I own a decent size amount of land too which for the area I live in, is quite large.
Now and If you were to read my post properly you would soon realise that I never accused you of lying. I just asked you as to how you can run your house with just 6.6 Kws of power a day.
As for the rest I refuse to reply to the nasty side of your post.

 

[Kelpie]

No one to date has come out clean and telling us as to how these so beaut solar panels are going to be disposed of and as to who will be the one having to pay for their disposals at the end of their lifetime.
Neither has anyone commented on how this highly toxic materials to produce them is arrived at and produced and as to how many chlildren are dying on yearly basis as a result of it.
Oh yes, it appears that, for some, the priorities are laying on how to protect some very destructive rodents.

Sad very sad indeed.