Peta Credlin slams government’s response to gas export crisis
Peta Credlin describes the PM as an “environmentalist masquerading as a conservative” over the gas export crisis.
UPDATE: Peta Credlin has described Malcolm Turnbull as an “environmentalist masquerading as a conservative” as she slammed the government’s response to the gas export crisis.
It was revealed on Monday by the national energy regulator that Australians could be exposed to energy shortages and price spikes from a gas shortfall next year, warning the shortage could be up to 107 petajoules of gas, equivalent to about 17 per cent of the demand it expects from households, businesses and power stations
Ms Credlin said the Prime Minister was not doing enough to confront the states over their renewable energy policies, which she believed are contributing to the crisis.
“I think the problem is the government has taken responsibility for what has been a calamity of policy for 15 years, in particular the state and their renewable energy targets. That’s been a problem in Victoria… it’s certainly the case in South Australia, and rather than make this a Labor Party problem, and use the issue of energy to go after Bill Shorten and really target jobs and household cost of living, unfortunately the government has taken it all on themselves,” she said.
“You can see from the news today that gas shortage is far worse on the eastern seaboard than we thought, and unfortunately for the Prime Minister his only response has been to write another letter to Premiers.
“I don’t think a letter is what people want to see… people don’t think that is good enough.”
WATCH: Peta Credlin on the Government’s response to our gas and energy crisis. On @SkyNewsAust pic.twitter.com/eNp25gOQON
— The Bolt Report (@theboltreport) September 25, 2017
The former advisor to Tony Abbott and Sky News commentator said the decisions on energy were contributing to the erosion of the Coalition’s base, which has been reflected in Newspoll results.
“He ideologically isn’t on the right track with his supporter base, first. Secondly on cost of living issues he always seems out of touch. Three, he’s got a wonderful stick to beat Labor with because they are strongly committed to a lift in the renewable energy target, but he is not going after Shorten. Finally, this is a complex area and the Prime Minister is speaking in academic language. You’ve got to cut through,” she said.
“He is an environmentalist masquerading as a conservative.”
Mr Turnbull said on Monday morning he would not allow the gas shortfall to continue or power bills to rise further.
He said state governments had failed to develop their own resources, but singled out Queensland as an “honourable exception”.
“Queensland is producing most of the gas on the east coast of Australia, but both Victoria and New South Wales are not doing enough,” he said.
EARLIER: ‘Fudging and delay’ on gas
Labor energy spokesman Mark Butler has accused Malcolm Turnbull of “continuing to fudge and delay” in addressing the gas export crisis, after the national energy regulator this afternoon warned Australians are exposed to energy shortages and price spikes from a gas shortfall next year.
The Australian Energy Market Operator backed the Prime Minister’s plan to divert gas exports to the local market, warning the shortage next year could be up to 107 petajoules of gas, equivalent to about 17 per cent of the demand it expects from households, businesses and power stations.
Mr Butler said Mr Turnbull should already have moved to divert the exports.
“Every single day the Prime Minister continues to fudge and delay and rely more on talk rather than action is another day that households see their power prices go up and up and up and Australian businesses and the tens of thousands of people that they employ see a future of job insecurity,” Mr Butler said.
“It’s time that the Prime Minister finally pulled the trigger and imposed export controls on Australian gas.
“The Prime Minister gave no reason why with all the information he now has to hand, he hasn’t acted today to impose export controls on Australian gas. All we see still is talk, fudging and delay.”
‘We will not let power bill rise further’
Mr Turnbull said he would not allow the gas shortfall to continue.
“We will not let the power bills of Australians rise further and further because of a shortfall of gas on the east coast of Australia,” Mr Turnbull said.
Mr Turnbull said there had been a comprehensive failure on the part of state governments to develop their own gas resources.
“Queensland is an honourable exception. Queensland is producing most of the gas on the east coast of Australia, but both Victoria and New South Wales are not doing enough,” he said.
“We strongly encourage the New South Wales government to approve the development of the
Narrabri Gas Project, for example, which will add over 58 petajoules of gas per year.
“The sooner that is brought online, that is critical to the energy security of Australia, the energy security of this state New South Wales, which I might say imports 95% of the gas it uses, so it needs to produce more gas.
“Victoria is an even worse example where the Labor Government under Daniel Andrews has prohibited the export of gas onshore, regardless whether it is conventional or unconventional.”
Mr Turnbull said he would write to the Chief Minister of the Northern Territory and to premiers to urge them to develop their gas resources.
“It is untenable for us to be facing gas shortages here on the east coast of Australia,” he said.
Mr Turnbull said Labor’s calls for the government to pull the gas trigger and limit exports showed they did not understand the market mechanism.
“Their failure to understand the energy market is what got Australia into the mess we are navigating our way out of — cleaning up Labor’s mess together with their failures on energy policy,” he said.
“The export control mechanism we announced earlier in the year is designed to ensure there is not a shortage of gas on the east coast in 2018. It is a process of careful consultation. Had we made a determination a week ago, we would have done so on the basis of information which was inaccurate.”
Conclusions central to PM’s plan
The conclusions are central to the government’s deliberations over the export controls it intends to impose on the three big gas export hubs in Queensland run by Santos, Origin and Shell.
“Based on the most recent information from industry, together with AEMO’s forecast demand, gas supply remains tight in eastern and southeastern Australia in 2018 and 2019, and there remains a risk of a supply shortfall,” said AEMO chief executive Audrey Zibelman.
“In real terms and based on no further response to today’s information, the projected shortfall risk for 2018 is between 54 to 107 PJs, and in 2019 between 48 to 102 PJs.
“To put this into context, total projected demand for domestic gas is expected to be approximately 642 PJs in 2018, and 598 PJs in 2019.”
Gas bill rises ‘unacceptable’
Energy Minister Josh Frydenberg said it was unacceptable in Australia today that a paper product manufacturer employing hundreds of people in regional Australia has seen its gas bill go from $15 to $30 million over the last 12 months.
“It is unacceptable that a linen company employing 30 people in regional New South Wales can only get a gas contract for three months at $16 plus a gigajoule.
“It is unacceptable that a tomato processor in Victoria has seen a 15 per cent increase year-on-year in its gas price.
“We are now starting to pay the price of the states’ mindless, moratoriums and bans on gas development,” he said.
Mr Turnbull said the government would commit to ensuring there was no domestic gas shortfall in 2018, effectively indicating the “gas trigger” will be pulled then if gas companies have not addressed the shortfall through other means.
“We had our discussion with the energy companies, the exporters today. They’ve indicated that they’re committed to ensuring (the shortfall) does not occur too,” he said.
Appearing alongside Treasurer Scott Morrison and Energy Minister Josh Frydenberg, Mr Turnbull said Barnaby Joyce, who remains Resources Minister amid a High Court challenge over his dual citizenship, had been absent due to an engagement in his electorate.
Regulator warning
The competition regulator also warned of a shortage in a separate report also released on Monday to guide the government decision on the export controls.
The Australian Competition and Consumer Commission said the benchmark prices for commercial and industrial customers, based on international LNG spot prices, were $5.87 per gigajoule in Queensland and up to $7.77 per gigajoule in the rest of the east coast.
The ACCC said domestic users in the southern parts of the country were facing very high gas prices, largely as a result of the expected supply shortfall and lack of competition between the southern gas suppliers.
In a clear signal the export controls could help domestic companies, the ACCC said prices in the south could be significantly reduced if additional sources of supply are developed in the south.
“We are seeing domestic prices on the east coast well in excess of the appropriate benchmark levels and many commercial and industrial users needing to recontract for supply in 2018 and beyond are holding out in the hope of improved conditions. There is a lot of pent-up demand,” said ACCC chairman Rod Sims in a statement.
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