Australian gas prices are no longer market based

Referencing this story and the other links within it,

https://www.afr.com/politics/energy-price-caps-a-free-kick-for-exporters-20221213-p5c5vu

I think that someone in industry lobbied the government and said that ‘we’ can’t afford to pay for high energy (gas) prices.

It may have gone something like this;

Industry said,

“You see, currently we aren’t globally competitive because our cost of labour (unionisation) and employment by-costs are too expensive.

We need help. We can’t cop the higher prices the Europeans are paying. I think you need to put a lid on the gas price that we’d be charged.”

Then Government said,

“OK let’s do that……
Heck, many of the domestic gas providers aren’t even Australian companies.
We’ll use the idea that this is Australian gas for Australia.
But it’s important that the new energy bill which will stop gas companies charging market rates is framed as helping the citizens and curbing inflation.”

And so government resolved that,

From industry we need your donations and
From the population, we need your votes.

Oh dear !

December 15, 2022

by Rob Zdravevski

rob@karriasset.com.au