Peter Dutton has unveiled plans to tackle Australia’s soaring energy costs, pledging a bold intervention to redirect gas supply from export markets to domestic consumers. In a speech responding to the government’s budget, the Opposition Leader said his policies would drive down wholesale gas prices and bolster the local power market.
Dutton’s remarks come at a time when Australians are grappling with rising utility bills and the impact of global power price fluctuations. Acknowledging that the cost of living has become a significant challenge, Dutton stressed the need for swift action to reduce energy costs for households and businesses alike.
Government’s Energy Strategy Under Fire
In his budget reply speech, Dutton argued that Australia’s current energy policy is failing. “We won’t oppose these latest rebates, because Australians desperately need power bill relief,” he stated.
However, Dutton was quick to point out that such rebates would not be necessary if the government’s energy approach was more effective.
According to the Opposition Leader, Australians are paying up to four times more for energy than residents of comparable economies, with the government’s $6.8 billion rebate initiative failing to adequately address the root cause of the problem.
As part of his energy overhaul, Dutton pledged to implement a domestic gas reservation policy. This would ensure that up to 20% of gas production, which would otherwise be exported, would be allocated for domestic use.
The move aims to secure an additional 10-20% of the east coast’s gas demand, effectively insulating Australia from volatile international price shocks. With the price of wholesale domestic gas currently above $14 per gigajoule, the Opposition Leader promises that this plan will reduce it to under $10 per gigajoule.
The Coalition’s proposal has drawn mixed reactions. Australian Energy Producers warned that oversupplying the domestic market could ultimately damage the gas sector, reduce investment, and exacerbate supply issues in the long term.
Despite these concerns, Dutton remains firm, arguing that securing domestic power resources is critical for national security and economic stability.
Expansion of Gas Infrastructure
In addition to the gas reservation policy, Dutton outlined plans to expand Australia’s energy infrastructure. According to the Opposition Leader, the government would invest $1 billion in developing additional gas pipelines and storage capacity along the east coast.
This investment aims to increase supply and further secure energy resources for Australian households and businesses.
Dutton also referenced a series of complementary initiatives, including reinstating a $300 million “strategic basin plan” and opening the government’s renewables investment scheme to gas, which currently only supports renewable power sources.
These steps, Dutton claims, would foster a more balanced and resilient energy market that can better serve the needs of Australian consumers.
