Consumers large and small are set to pay higher energy prices but it has little to do with looming “gas shortages” cited by the market operator, energy researchers with Melbourne University said.
A study by Tim Forcey and Dylan McConnell at the university’s Climate & Energy College challenged forecasts in March by the Australian Energy Market Operator of “shortfalls” of gas supplies within 18 months and its call for new pipelines and coal seam gas fields as “solutions”.
AEMO’s findings amounted to “jumping at shadows”, and likely underestimated how much gas demand will drop in response to soaring energy prices – especially as homes and businesses buy more energy-skimping products or switch to electricity.
“Consumers don’t need to worry about there being no gas in the pipe,” said Mr Forcey, an engineer with more than 35 years in the energy and petrochemicals industries. “But certainly the gas is a lot more expensive than it used to be, and that’s going to stay.”
With gas-fired power stations often setting the marginal electricity price, wholesale prices have also leapt, soaring to well above $100 per megawatt-hour across the eastern states.
Hugh Saddler, an honorary associate professor at the Australian National University, said it was likely consumers in most states will experience double-digit increases in retail electricity and gas prices when they get adjusted after July 1. For Victoria, the pain will come next January at its annual price reset, he said.
“You’re crazy to go with gas now,” he said. “Reverse-cycle air conditioning is so much cheaper.”
At Jessups Solar Squad we may not be Professors or Mind readers however this is something we always new!
Even Aurora’s past “Warm” magazines distributed state-wide showed running cost comparison charts that exposed hefty costs of burning gas for heating against Heat Pumps!
See us for Tassie’s Favourite Heating, The Daikin Heat Pump,
And if you want to escape rising power bills, talk to us about Solar Power available now at its best price ever.