Australia competition watchdog to probe gas pricing by retailers (updated)
16/05/2023 04:02
(Adds context, competition watchdog's comments in paragraphs
7-10)
By Emily Chow
ADELAIDE, Australia, May 16 (Reuters) - Australia's
competition watchdog will look into natural gas retailers'
market behaviour and expects them to pass through cheaper
supplies to consumers, the head of the agency said on Tuesday.
The government has ramped up scrutiny of the gas industry,
introducing price caps and proposing to expand powers to curb
liquefied natural gas exports from east coast plants to ensure
sufficient supply for domestic consumers at affordable prices.
Gas producers, however, have said the measures would
deter investment in new supply crucial for the east coast, home
to most of the country's population and gas-dependent
manufacturers.
The objective of the government's intervention is to have
enough supply for east coast markets at a reasonable price, Anna
Brakey, commissioner of the Australian Competition & Consumer
Commission (ACCC), told the APPEA industry conference.
"We will now turn our focus to retailers," she said.
The watchdog expects retailers to pass on cheaper gas prices
to consumers and if this does not happen, Brakey said, it will
provide further recommendations to the government.
The country's top gas retailers are Origin Energy ORG.AX ,
AGL Energy AGL.AX and EnergyAustralia, owned by Hong Kong's
CLP Holdings 0002.HK .
"What we really want to see is a thriving market that can
serve both the domestic and international market commitments,"
she said.
"We are projecting a (gas supply) shortfall from 2027, (but)
we do hope that new supply will come in to fill that gap."
In a January report, the ACCC said forecast gas
production is insufficient to meet forecast demand in the east
coast from 2027.
(Reporting by Emily Chow; Writing by Florence Tan; Editing by
Christopher Cushing, Edmund Klamann and Sonali Paul)
((Florence.Tan@thomsonreuters.com; Reuters Messaging:
florence.tan.thomsonreuters.com@reuters.net))