Energy companies hide key facts as households pay more than needed
- Replies 49
If you’ve opened your latest energy bill and felt your jaw hit the floor, you’re not alone.
Across the country, Australians—especially those of us on fixed incomes—are feeling the pinch as energy prices reach record highs.
But what’s really driving these soaring costs? And is there more to the story than meets the eye?
Let’s pull back the curtain on the uncomfortable truth about Australia’s energy market and what it means for everyday Aussies like you.
You might be surprised to learn that while we’re paying more for gas and electricity at home, Australia is one of the world’s largest liquefied natural gas (LNG) exporters.
In fact, a recent analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) has revealed that Japanese energy companies are making upwards of $1 billion by buying Australian LNG and then on-selling it to other countries—sometimes even while Australia faces looming shortfalls in our own domestic supply!
To put it in perspective, Japan is Australia’s top customer for LNG, accounting for about 40 per cent of our exported cargo.
But here’s the kicker: Japanese firms are not just using this gas for their own needs—they’re acting as middlemen, reselling an estimated 600-800 petajoules (PJ) of Australian gas each year.
That’s more than the total amount used by all of eastern Australia last year (511PJ)!
You might think our gas is being sent to developing nations in need, but that’s not the case.
The majority of this on-sold Australian LNG is going to wealthy countries like Taiwan and South Korea—markets that pay top dollar and pose little financial risk to sellers.
This means that while Australian households and businesses are struggling with high prices and even the threat of gas shortages, our own resources are being shipped overseas for profit.
It all comes down to how our energy market is structured. Unlike some other resource-rich countries, Australia doesn’t have strong domestic reservation policies that require a certain amount of gas to be set aside for local use.
This has led to a situation where, as IEEFA’s Amandine Denis-Ryan puts it, 'it’s quite extraordinary for Australia to be running out of gas for domestic use—and even considering importing it—while Japan resells enormous volumes of our gas overseas for a profit.'
In fact, the amount of Australian gas being resold by Japanese companies is greater than the projected annual gas shortfalls in both eastern and western Australia.
It’s a situation that has left many experts and everyday Aussies scratching their heads.
The bottom line is that energy exports, while lucrative for big companies and foreign governments, are currently hurting Australian consumers and the broader economy.
As prices rise, it’s everyday people—especially seniors and those on fixed incomes—who are left to bear the brunt.
If you’re feeling the squeeze, you’re not alone. Young Australians are also struggling under the weight of rising energy bills, and there’s growing pressure on the government to step in and ensure that more of our natural resources are reserved for local use.
There are calls for stronger domestic reservation policies, which would require energy companies to set aside a portion of their gas for Australian households and businesses before exporting the rest.
Western Australia already has such a policy in place, and it’s credited with keeping local prices lower than in the eastern states.
Change won’t happen overnight, but there are ways to manage your energy costs in the meantime.
Start by shopping around for a better deal using comparison websites to find cheaper plans from different providers.
Make sure you’re receiving all the government rebates and concessions available to seniors.
Being energy-smart with simple actions—like switching to LED bulbs, using appliances efficiently, and sealing drafts—can also help reduce costs.
If you can invest, consider installing solar panels to lower your reliance on the grid and save on bills over time.
Have you noticed your energy bills going up? Do you think Australia should reserve more of its gas for local use? Or have you found any clever ways to cut your energy costs? We’d love to hear your thoughts and tips—share your experiences in the comments below.
Across the country, Australians—especially those of us on fixed incomes—are feeling the pinch as energy prices reach record highs.
But what’s really driving these soaring costs? And is there more to the story than meets the eye?
Let’s pull back the curtain on the uncomfortable truth about Australia’s energy market and what it means for everyday Aussies like you.
You might be surprised to learn that while we’re paying more for gas and electricity at home, Australia is one of the world’s largest liquefied natural gas (LNG) exporters.
Australian LNG is being on-sold by Japanese companies for profit while local gas shortages are being faced. Credit: Nando Vidal / iStock
In fact, a recent analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) has revealed that Japanese energy companies are making upwards of $1 billion by buying Australian LNG and then on-selling it to other countries—sometimes even while Australia faces looming shortfalls in our own domestic supply!
To put it in perspective, Japan is Australia’s top customer for LNG, accounting for about 40 per cent of our exported cargo.
But here’s the kicker: Japanese firms are not just using this gas for their own needs—they’re acting as middlemen, reselling an estimated 600-800 petajoules (PJ) of Australian gas each year.
That’s more than the total amount used by all of eastern Australia last year (511PJ)!
You might think our gas is being sent to developing nations in need, but that’s not the case.
The majority of this on-sold Australian LNG is going to wealthy countries like Taiwan and South Korea—markets that pay top dollar and pose little financial risk to sellers.
This means that while Australian households and businesses are struggling with high prices and even the threat of gas shortages, our own resources are being shipped overseas for profit.
It all comes down to how our energy market is structured. Unlike some other resource-rich countries, Australia doesn’t have strong domestic reservation policies that require a certain amount of gas to be set aside for local use.
This has led to a situation where, as IEEFA’s Amandine Denis-Ryan puts it, 'it’s quite extraordinary for Australia to be running out of gas for domestic use—and even considering importing it—while Japan resells enormous volumes of our gas overseas for a profit.'
In fact, the amount of Australian gas being resold by Japanese companies is greater than the projected annual gas shortfalls in both eastern and western Australia.
It’s a situation that has left many experts and everyday Aussies scratching their heads.
The bottom line is that energy exports, while lucrative for big companies and foreign governments, are currently hurting Australian consumers and the broader economy.
As prices rise, it’s everyday people—especially seniors and those on fixed incomes—who are left to bear the brunt.
If you’re feeling the squeeze, you’re not alone. Young Australians are also struggling under the weight of rising energy bills, and there’s growing pressure on the government to step in and ensure that more of our natural resources are reserved for local use.
There are calls for stronger domestic reservation policies, which would require energy companies to set aside a portion of their gas for Australian households and businesses before exporting the rest.
Western Australia already has such a policy in place, and it’s credited with keeping local prices lower than in the eastern states.
Change won’t happen overnight, but there are ways to manage your energy costs in the meantime.
Start by shopping around for a better deal using comparison websites to find cheaper plans from different providers.
Make sure you’re receiving all the government rebates and concessions available to seniors.
Being energy-smart with simple actions—like switching to LED bulbs, using appliances efficiently, and sealing drafts—can also help reduce costs.
If you can invest, consider installing solar panels to lower your reliance on the grid and save on bills over time.
.png){kind=icon}
