The Australian Energy Market Operator’s finds that additional sources of Victorian gas are required to avert a crisis in gas supplies from 2024.
The report provides compelling evidence why the government needs to lift the moratorium on conventional onshore gas exploration, set to expire in June 2020.
Victorian businesses have for too long faced uncertainty around gas prices and security of supply. Today’s report only adds to this uncertainty and confirms a comprehensive plan is needed to ensure that the state has access to secure and affordable energy. Escalating energy prices threaten the competitiveness, and in some cases the ongoing viability, of Victorian business.
The Victorian Chamber has a longstanding position calling for increased gas supplies to address high prices, including by lifting the moratorium on conventional gas exploration. A regulatory regime to manage the risks of individual gas supply projects on a case-by-case basis should be installed instead of the moratorium.
The Victorian Chamber does not support fracking.
To be attributed to Victorian Chamber Chief Executive Mark Stone AM:
“AEMO’s analysis validates our longstanding position that the moratorium on onshore conventional gas exploration must be lifted. The Victorian Government needs to act now to stop Victorian’ businesses from running out of gas.”
“Businesses continue to tell us about the risk that high gas prices are posing to their businesses. Today’s forecast by AEMO will prompt energy intensive and trade exposed businesses to question the continued viability of their operations in Victoria”
