Labor’s pledge to adjust the default market offer is politically popular, but risks backfiring by putting unsustainable pressure on energy retailers already operating on razor-thin margins.
Shares in Santos are trading well below the bid price indicating concern Australia could reject the bid. Narrabri is ADNOC’s trump card.
The deal includes promises to maintain Santos’ headquarters in Adelaide and accelerate investment in gas in Australia, should it go through.
State and federal Labor governments are under mounting pressure to prevent the collapse of one of Australia’s largest manufacturers.
Victoria’s two largest power stations are running at reduced capacity, increasing the state’s reliance on gas. But supplies are under pressure after a fault at major east coast plant.
Households and small businesses that install a battery and join a virtual power plant will be eligible for increased subsidies to shore up the grid. This is on top a federal rebate scheme worth up to 30pc from July 1.
A maintenance mishap will result in one of Yallourn’s coal-fired plants being out of action for two weeks during one of the most volatile periods for demand.
Gas developers are fighting a new front from climate activists who are turning to sophisticated legal and regulatory diligence to stall or topple projects, even those with government backing.
Demand for batteries will soar from July 1 under a Labor scheme, boosting the nation’s energy transition. But it could also uproot the business model of traditional retailers.
‘You’re no longer just talking about a single fuel source. There are multiple technologies, multiple time horizons and significant investment decisions that need to be made simultaneously,’ says Karen Moses.
Original URL: https://www.theaustralian.com.au/author/colin-packham/page/2