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Claims Andrews government’s gas moratorium has fuelled the energy crisis

Experts and industry chiefs say a gas moratorium implemented by the Andrews government has fuelled the state’s current energy crisis.

National Electricity Market suspension a 'temporary measure'

Gas supply to meet Victoria’s needs for up to four years was locked up by a nine-year moratorium on exploration that ­experts and industry chiefs say has fuelled the energy crisis.

And if fracking – a controversial drilling method – was allowed, Victoria could have enough gas to power every household in the state for more than 200 years, according to the Institute of Public Affairs.

The state dodged enforced blackouts on Thursday as the energy market operator continued to operate the electricity grid directly, having suspended the market for the first time in its history.

But supply remains tight, with one of four units at the Yallourn coal-fired power station – which supplies a fifth of Victoria’s power – to be offline for another week.

The Yallourn coal-fired power station. Picture: Daniel Pockett
The Yallourn coal-fired power station. Picture: Daniel Pockett

Premier Daniel Andrews blamed the former federal Coalition government’s failure to produce a “clear ­energy policy” for the crisis and said the market was “dysfunctional”. “There’s enough energy there, it’s just about how it’s bought and sold, how it’s shared and spread across our nation,” he said.

But the Australian Workers Union, federal ­Resources Minister Madeleine King, Australian Petroleum Production and Exploration Association and Alinta Energy boss Jeff Dimery are among those to have pointed the finger at Victoria’s gas moratorium, too.

The ban ended last year after geoscientific investigations found up to 830 petajoules of conventional gas was available onshore. Victoria uses 200 petajoules a year.

APPEA has estimated up to 28,514 petajoules of unconventional gas could be accessed if fracking was allowed.

APPEA has estimated up to 28,514 petajoules of unconventional gas could be accessed if fracking was allowed.

Victorian Premier Daniel Andrews. Picture: NCA NewsWire / Andrew Henshaw
Victorian Premier Daniel Andrews. Picture: NCA NewsWire / Andrew Henshaw

“The restrictions and red tape on gas exploration and development must immediately be lifted to help fix Australia’s energy crisis,” IPA research ­director Daniel Wild said. Mr Andrews refused to ­revisit the state’s fracking ban and said Victoria needed to ­diversify fuel supply instead of ­relying on one type of fuel.

Vice chair of consultancy group WoodMac, Gavin Thompson, said one producer had bluntly told him: “Folks in Melbourne better get used to cold showers.”

“This is largely a crisis of domestic making,” he said.

Prime Minister Anthony Albanese has locked in Australia’s new 2030 emissions reduction target of 43 per cent.

He will seek to legislate the target next month.

Original URL: https://www.heraldsun.com.au/news/victoria/electricity-price-market-suspended-amid-power-crisis/news-story/335d8d16fd64595b47f85a7f647eb5d8