As we transition to a net zero energy system, we must promote efficient energy network investment and operation that’s in the long-term interests of households. This means focussing only on investment in the lowest emission, lowest cost options, with robust regulation of the costs communities face.
That’s why we strongly opposed the Australian Energy Market Operator (AEMO) being given the power to be the investor of last resort in new gas supply infrastructure in our response to AEMO’s East Coast Gas System Reliability and Supply Adequacy functions Consultation Paper. Key issues we highlight include:
- The fundamental problem with providing additional support to expanding infrastructure enabling fossil gas use;
- the lack of robust evidence to show such a mechanism is required;
- no strong evidence that the intervention will promote efficient investment benefiting consumers, and;
- an unfair allocation of cost and risk to electricity consumers.
What’s next?
We’ll continue to monitor measures which support gas supply and gas infrastructure to ensure they are restricted to efficiently maintaining necessary services in the short term, and don’t slow the transition or increase its costs to energy consumers.
