Australian households are to be hit by another rise in energy bills, this time due to rising gas prices, as highlighted by a report released today.
“This just confirms what we were already saying: It’s time to get off gas energy,” Beyond Zero Emissions’ Executive Director, Matthew Wright says.
“Whether it’s householders replacing gas appliances with efficient modern electric ones, or governments introducing policy for the building of renewable wind and solar power instead of gas power stations, the writing is on the wall: If you want stable prices and energy security then get off gas.”
A report released today, commissioned by the Australian Industry Group, finds gas prices are rising as they are being tied to international prices due to the development of an export industry.
A doubling of domestic gas prices is expected, as a result of the booming LNG export market. This will threaten the supply to domestic industries such as manufacturing. It will make electricity from gas power stations dearer, and household gas appliances much more expensive to run.
The report explains that domestic industries currently receive gas supply at $4-6 per gigajoule. While energy companies will profit from international prices that are above $10 per gigajoule, domestic consumers and industry face a nightmare scenario.
The AIG report shows that the gas export expansion will cause a $7 billion loss to the economy – coupled with increased greenhouse gas emissions, water contamination, damaged farm land and broken communities.
“Gas is getting dirtier and dirtier as conventional supplies run out and we go into coal seam and shale gas. It’s also more expensive. Rising prices are not the only reason to get off gas," Mr Wright said.
“Modern electric household appliances are far more energy-efficient than gas equivalents, with less carbon emissions, and increasingly, much cheaper to run.
“Renewable energy has been lowering electricity prices. In South Australia the Essential Services Commission has lowered the prices for households by some $160 off the back of their falling wholesale prices.”