Malcolm Turnbull says Government will restrict gas exports in attempt to lower power prices
Updated
The Federal Government is taking more steps to try to keep gas prices down, announcing it will follow through on its plan to restrict gas exports in a bid to counter domestic shortages causing high prices in Australia.
Resources Minister Matt Canavan said 65,000 people work in industries where gas is at least 15 per cent of the cost of doing business.
"We're acting to protect the jobs, because gas for these businesses is a staple and the bread and butter of the businesses," Senator Canavan said.
Prime Minister Malcolm Turnbull would not be specific about how much impact the export controls would have on prices.
But he said wholesale prices had fallen since he first floated the idea earlier this year.
"How they translate into retail prices or prices for industrial users is another thing, but on the wholesale market, on the spot market, you've seen prices come down," Mr Turnbull said.
He argued it would not be acceptable for Australia to become the largest exporter of LNG in the world and have a shortage of gas in its east coast domestic market.
In a separate bid to keep prices down, Mr Turnbull announced he wants to stop energy networks being able to appeal against the regulator's rulings about what they can charge.
The Prime Minister has also asked the energy market operator (AEMO) to determine the exact impact of the expected closure of more power stations on energy prices over the next decade.
He said it should then provide advice about the best way to make sure a reliable and affordable power supply is available.
Mr Turnbull also did not rule out the Federal Government investing in or building a new coal-fired power station if AEMO said it would be required.
Topics: government-and-politics, federal-government, oil-and-gas, industry, business-economics-and-finance, australia
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