An immediate response is needed to calm the chaos, says a coalition of industry bodies as Australia’s energy ministers meet to discuss the energy crisis today.
The coalition is made up of 28 representatives of businesses associations, consumer advocates, the community sector, environmental advocates, farmers, investors, the property sector, professional bodies, researchers, and Australia’s energy and energy management sectors.
In an open letter to the ministers, the group said, “Wholesale electricity and gas prices and futures are soaring to unprecedented levels that threaten intense and lasting pain for households and businesses. This rapid rise is also causing chaos among smaller energy retailers, adding to immediate risks.”
While immediate action was necessary, longer-term measures to moderate energy prices and cut emissions by improving supply and lifting demand-side efficiency, energy management and fuel switching also needed to be addressed.
“Only a handful of measures are likely to help in the short term and they are unlikely to be sustainable.
“We are encouraged by national Climate Change and Energy Minister Chris Bowen’s early push to bring his State and Territory counterparts together this week. The response they forge jointly should be collaborative, balanced and staged,” it said.
While there are short-term causes at play – the unavailability of ageing and unreliable coal generators, the onset of winter peak demand for heating – the biggest factor is high international prices for coal and gas, which are likely to be sustained for years.
A staged response is essential, the group offered, because the crisis includes both acute price pain and the likelihood of chronic high prices thereafter.
“Accelerating our clean energy transition in a fair and inclusive way will ultimately deliver durable help, but while that requires immediate action it will largely impact the medium term,” it said.
A collaborative response between the Commonwealth, States and energy stakeholders is needed because no one player holds all the powers, resources and information to resolve this crisis. Industry and community leaders can bring expertise, urgency and goodwill to the table and we ask energy ministers to work with us. Working together and being transparent will give us all the best chance of success.
A long-standing lack of investment in energy efficiency, energy management and fuel switching has left Australians more vulnerable both to high prices and to extreme weather, the group said.
“A balanced response will address both the supply and the demand sides of this crisis. Energy supply is essential, including behind-the-meter solar and storage accessible to all. But final energy costs depend not just on the price of energy, but how much energy households and businesses have to use to meet their needs.
“Demand-side investments don’t just pay off through lower individual bills. They deliver improved health and higher energy productivity, reduce the need for new supply-side investment, and help us reach our emissions goals.
“A faster buildout of large-scale renewables and transmission makes all the sense in the world, as does a speedier move from natural gas to alternatives from electrification (like efficient reverse cycle air conditioning in households) to biogas (like captured landfill gas running brick kilns) to hydrogen (like green hydrogen for essential chemical products) as appropriate in different contexts.
“Actually making this acceleration work will be complex, requiring reforms and coordination across multiple jurisdictions and both public and private investments. We are confident, however, that Australia’s governments can alleviate this pain and build a stronger, more affordable and clean future if they work together and draw on the expertise and goodwill around them," it said.
The Australian Fresh Produce Alliance (AFPA) echoed the group's comments, saying recent gas price increases have been as high as 400 per cent.
AFPA CEO Michael Rogers said, “The Australian economy faces a number of challenges with energy price and availability becoming a key issue. Government and industry must work together to find an immediate solution to provide some relief, and a longer-term framework to provide certainty for Australian businesses.
“The ongoing increases in gas prices are difficult to keep up with – companies are looking at multi-million dollar increases in their gas bill over the next six months. Any government intervention in the gas market will have far reaching consequences.”
Signatories
Ai Group
Innes Willox, chief executive
Australian Alliance for Energy Productivity (A2EP)
Jarrod Leak, CEO
ACT Council of Social Service
Emma Campbell, CEO
Australian Conservation Foundation
Kelly O’Shanassy, CEO
Australian Council of Social Service
Cassandra Goldie, CEO
Australian Energy Foundation
Anna Crabb, CEO
Australian Sustainable Built Environment Council
Anne Martinelli, interim executive director
Clean Energy Council
Kane Thornton, chief executive
Community Housing Industry Association
Sarah Toohey, CEO
Energy Efficiency Council
Luke Menzel, CEO
Engineers Australia
Michael Luddeni, acting CEO
Green Building Council of Australia
Davina Rooney, CEO
Facility Management Association of Australia
Nicholas Burt, chief executive
Group of Energy Efficiency Researchers (GEER) Australia
Dr Rowan Bedggood, chair
Housing for Health Incubator
Investor Group on Climate Change
Rebecca Mikula-Wright, CEO
National Farmers’ Federation
Tony Mahar, CEO
National Shelter
Emma Greenhalgh, CEO
New South Wales Council of Social Service
Joanna Quilty, CEO
Property Council of Australia
Ken Morrison, chief executive
Public Interest Advocacy Centre
Douglas McCloskey, program director
Energy + Water Consumers' Advocacy Program
Renew
Kate Doyle, interim CEO
Rewiring Australia
Dr Saul Griffith, founder
South Australian Council of Social Service
Ross Womersley, CEO
St Vincent de Paul Society
Gavin Dufty, general manager Policy and Research
Tasmanian Council of Social Service
Adrienne Picone, CEO
The Australia Institute
Ben Oquist, executive director
Victorian Council of Social Service
Emma King, CEO
Western Australian Council of Social Service
Louise Giolitto, CEO
