Politics Now
Power Play || Insiders On Background
Apr 11, 2025
Danny Price, a representative from Frontier Economics, joins David Speers to delve into the coalition's ambitious gas policy aimed at lowering energy prices. They explore how the proposed east coast gas reservation could impact consumer costs, dissecting modeling insights and the economic implications of pipeline capacities. The conversation touches on the interplay between gas markets and renewable energy investments, as well as the potential benefits for households, including notable decreases in gas and electricity bills.
30:21
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Quick takeaways
- Peter Dutton's proposed gas reservation policy could lower wholesale gas prices by 23%, benefiting both households and businesses.
- Critics express concern that price limits may deter industry investment and supply, complicating the balance between consumer protection and economic sustainability.
Deep dives
Peter Dutton's Gas Policy Proposal
Peter Dutton has proposed a gas reservation policy aimed at lowering gas prices for households and businesses during his election campaign. This policy is positioned as a major initiative to address rising energy costs, yet concerns over its effectiveness have emerged. The modeling conducted by Frontier Economics suggests that this policy could reduce wholesale gas prices, but critics argue it may limit supply and hurt the industry in the long term. Historical reference points, such as Western Australia's successful gas reservation scheme, illustrate the potential benefits and challenges associated with implementing such a policy in the East Coast market.
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