Energy price hikes: Sco Mo urges state governments to free up gas supply
With household energy price rises as high as 20% or more set to hit New South Wales, Queensland South Australia and the Australian Capital Territory in a couple of days, the Federal Treasurer Scott Morrison has lifted the lid on the gas supply debate in the form of a new threat to State and Territory Governments.
In an interview with The Australian, Morrison said that the government is considering changing how GST revenue is distributed, so that states and territories limiting natural gas extraction activities (such as fracking) would receive less money than those who do.
“I think it needs a fair-dinkum look,” he said. “The Productivity Commission is looking at whether the way the states and territories operate is giving them a leave pass under the GST formula for not getting on and doing things.”
Morrison’s comments come at a time when Aussie consumers continue to see local gas prices increasing, despite the fact that the country is the largest liquid gas exporter in the world.
Back in April the Federal Government flagged that it would soon place export restrictions on energy suppliers, to loosen up supply for the local market and reduce costs.
"We don't want to see a situation where gas prices here are higher than they are in the export markets we are exporting to - that is untenable and not an appropriate outcome," Resources Minister, Matt Canavan told ABC Radio.
Energy customers are yet to see the future of gas unfold in the country. But in the meantime, thousands of customers living in deregulated states will still see their gas and electricity bills rise significantly from July 1.
Those keen to avoid the price changes can shop around for a better deal at Mozo’s energy comparison hub, which takes into account all discounts and incentives so you don’t have to do the maths.