Coordination Commission boss Neville Power backs increased gas supply to keep prices down

COVID-19 Coordination Commissioner Neville Power. Picture: AAP

The federal and state governments should take account of the COVID-19 crisis to set the ground rules to encourage more gas supply to support the boom in renewable investment according to Coordination Commission boss Neville Power.

In an interview with The Australian, Power said the key to the Australian energy equation, and the best way to keep prices down, was gas with increased supply.

Both gas and electricity prices in Australia are dirt cheap now compared to a year or so back and Power said the trick was to lock in those prices.

Power shares Prime Minister Scott Morrison’s belief that increased renewables would bring down emission levels in Australia to comfortably meet international targets.

But gas is a tough one, given NSW and Victoria have blocks on new developments.

Power said: “We need more investment in gas infrastructure to bring stranded gas to the market and increase supply.”

This means more work for APA and other pipeline suppliers.

“Gas is also an important feedstock for other industries like fertilisers, petrochemicals and methanol,” Power said.

“We need to reduce regulatory complexity and create a simplified structure without the duplication,” he added.

New gas storage would help at the margin he said, but stressed the key was open exploration for new mineral resources.

Power’s old boss Andrew Forrest is talking about building east coast storage for gas as is AGL.

The road not taken

There is a well-worn path from being a senior banker in Australia who misses out on the top job to travel to London to head retail at RBS.

Brian Hartzer did it from ANZ before returning to eventually be the top person at Westpac before the Austrac snafu saw him depart last year.

He was followed by Ross McEwan who missed out to Ian Narev at CBA and ended up running RBS before returning to run NAB.

Now David Lindberg having missed on the top job at Westpac to Peter King is off to RBS.

On the same plane will be Westpac IT boss Craig Bright who will become technology chief at Barclays in London.

King now has two big roles to fill at Westpac, but for him with former RBS chair John McFarlane in the chair at Westpac, there is the chance to rebuild his own executive team.