ACCC says gas giants’ record profits should pay for investment despite price caps

The national competition watchdog has cast doubt on the gas industry’s claims that the Albanese government’s new price caps and market rules will stifle investment and impose unfair risks on producers, pointing to the industry’s soaring revenue.

The government imposed the caps to reduce gas bill increases of up to 40 per cent forecast to hit homes and businesses in the next two years as a result of global energy shortages caused by the war in Ukraine. “We are hoping that [companies] that wish to come forward to express directly to us, which will happen in a confidential manner, questions, then we are keen for that to occur as promptly as possible,” Cass-Gottlieb said.“It’s based upon nearly six years of detailed investigation and regular reporting and monitoring to government on the East Coast gas market,” Cass-Gottlieb.

Since the price caps were first flagged late last year, gas companies have been warning that the move could deter investment needed to develop new sources of domestic supplies crucial to driving down prices in the longer run.

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ACCC places a ‘lot of effort’ into addressing gas market contract complexitiesA 'lot of effort” goes into the ACCC addressing gas market contract complexity, Grattan Institute Energy Deputy Program Director Alison Reeve says. “The ACCC has gone to a lot of effort to address some of the complexity we get in gas markets,” Ms Reeve told Sky News Australia. “Gas contracts can take lots of different shapes, and there’s a diversity of supplies and also diversity of customers in the market. “They can’t come up with a one-size-fits-all solution.”
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