MOUNT Isa mayor Tony McGrady has welcomed the federal government’s request for an independent report on gas prices.
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Since 2010 the Australian Energy Market Commission (AEMC) has reported annually on residential electricity price trends.
But there is no similar reporting on gas prices and their future trends.
Business, industry and households are feeling the effect of rising wholesale gas prices resulting from the tight eastern gas market and limited supply competition.
Councillor McGrady says the federal government’s move to investigate gas prices showed there was a push to enhance the country’s reliance on gas.
“Gas is one of the fuels of the future,” he said.
Cr McGrady has played an integral role in attempting to secure a gas pipeline coming through Mount Isa from Tennant Creek, to supply the East Coast gas market.
He hopes the spotlight on gas at federal level was a positive for the North West.
“This inquiry into gas prices shows there is a greater need for gas to be the energy to supply the country,” Cr McGrady said.
“What we need to do now is convince the federal government to invest in infrastructure for gas.”
State member for Mount Isa Rob Katter has long wanted a Reserve Resource Policy, especially for North West industries where all industry is based upon gas.
The policy would reserve a portion of the state’s gas for Queenslanders so it is preserved and creates industry and jobs, and offers cheaper electricity and affordable gas for communities.
The complex web of deregulated markets in most states and territories and wholesale gas contracts has made it difficult to work out what is driving residential and industrial prices.
The federal industry department has sought a contractor to report on gas prices and their trends.
The report is due by mid-June.