Gas reforms critical according to Energy Green Paper
Tuesday, 23 September 2014 15:22

The Australian Food and Grocery Council (AFGC) welcomes the release of the Energy Green Paper, which, combined with the Competition Policy Review released yesterday emphasises Australia still has a way to go in improving the competitiveness of domestic energy markets.

AFGC CEO Gary Dawson said rising electricity and gas costs have hampered the competitiveness and profitability of the domestic food and grocery manufacturing industry in recent years, with more pain yet to come through a tripling of gas prices.

In July, the AFGC and a consortium of five other industry associations released a report that estimated the damaging effect of rising gas prices on Australia’s manufacturing industries.”

“The Deloitte report estimated that a tripling of gas prices will lead to a cumulative loss of output in the food, beverage and grocery manufacturing industry of $9.7 billion by 2021 and a loss of 3000 jobs over the same period.”

“In releasing the Energy Green Paper, the Australian Government has agreed with industry’s calls for gas market reform by increasing gas supplies, improving competition and increasing information about gas supply availability and pricing.”

“In addition to gas market reform, the AFGC also supports recommendations for further electricity market reforms including electricity retail market pricing and privatisation, which will boost competition.”

“While the Australian Government’s commitment to these issues is welcome, we now need action from all jurisdictions to ensure that these calls don’t go unheeded”, said Mr Dawson

 

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AFGC Media Contact: James Mathews 040 741 6002