Is the AFR rejoining economic rationality?

The AFR has spent a decade of extolling the merits of renewable energy.  It has waxed lyrical on the beneficial effects of taxes on fossil fuels (aka renewable subsidies, the NEG).  But, following a passage rightly pointing out the cost imposed on the nation by a gas reserve policy, comes this from the editorial in today’s AFR

The loss of baseload power from sudden shutdown of Victoria’s Hazelwood coal-fired power plant in early 2017  .… was precipitated by the force-feeding of unreliable renewable energy into the power grid. Rather than penalise the source of Australia’s prosperity, governments need to fix the policy failures that have caused the problem.

In promoting the opposite position, for years the AFR has given regular columns to the green left writers at the Grattan Institute, the Australia Institute and elsewhere.  It has hosted a coterie of in-house journalists ceaselessly opining on the merits of “modern” sources of electricity – the sun and wind – marching daily to replace all their antediluvian fossil and nuclear rivals.  It  has approvingly cited the renewable energy scam’s boosters, including green interventionists like Garnaut and Yates as well as self-serving business leaders like EnergyAustralia’s Tanna, the appalling ex-AGL chief Andy Vesey, the cashed-up wind and solar farming subsidy-seekers, and political appointees heading regulatory agencies.

Here is just a small sample of headlines

July 25 2018 The NEG won’t stop the unstoppable march of renewable energy

August 20 2018 Thank God for renewable energy targets, state and federal

August 9 2018 NEG agreement will be our first step to energy sanity

Nov 21 2017 There is no credible alternative to the National Energy Guarantee

So, what has caused this apostasy?  A sudden revelation that has dawned on Stutchbury, Potter, Macdonald-Smith, Tingle that the policy they have commended for so long is empty of virtue?  Or is it just a bout of indigestion after which the previous economy-crushing policy promotion can be resumed?

If the former, can we expect to see journalistic pieces that examine ways out of the predicament created by a disastrous policy germinated over 20 years ago by John Howard?  The latest editorial is certainly right: we need to fix the policy failures that have caused the failure.  But how to do this with a legacy of unreliable wind and solar facilities poisoning the low cost, reliable electricity system we previously had and, given our abundant easily mined coal, could once more be the backbone of the economy?

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58 Responses to Is the AFR rejoining economic rationality?

  1. bollux

    To be fair to Howard, he was bullied into a “seeming to be Green” position. I think he just got tired of being called a dinosaur and thought he had to throw a few crumbs to the hoi polloi. Similar to Abbotts cave-in perhaps, but Tony threw them the whole loaf.

  2. yarpos

    Will be a long road back to sanity I think. The MSM is still propagandising to a mass of people emerging from the indoctrination/education system that tells them renewables are the answer to a make beleive problem. Now we have people in positions of power that beleive this nonsense.

    Personally I think we will have to have a train wreck to get people to think. We are well on the way.

  3. CameronH

    Howard was not bullied. His environmental minister was Turnbull. Can you imagine the BS that was feed to him on this issue. Malcolm Turnbull and his destruction of the LNP has flowed onto our entire nation.

  4. ACTOldFart

    The AFR’s change of heart couldn’t possibly have something to do with Fairfax being taken over by Channel 9, could it? Peter Costello, as chair of 9, as an agent for change and rationality, for example? Sell the bl00dy AFR to Gina Reinhard, I say!

  5. It will take a long time, especially with the media still spewing crap like this to try and justify our decent into a feudal society: https://www.abc.net.au/news/2019-07-04/fact-check3a-is-it-correct-that-driving-from-sydney-to-melbour/11267090.

  6. Paul Farmer

    There needs to be a little context around saying Howard adopted the RET. He initially committed to 15 % target by 2020 when Labor was committing to 20 % and given his government could see it was unlikely to be returned in that year’s election and there was a lot over the top nonsense on green energy around this time, they had to move politically on the issue.

    It’s one thing to support a policy’s adoption and implementation, but it’s another how you react once the facts come in from the implementation. I seriously doubt Howard would have continued to support renewables as has Labor and papers like the afr have as more evidence has come in over the last decade on their deleterious effects on baseload power economics and reliability of the entire grid. Moreover if truth be known , there has also been another 11 years of evidence in in the interim period that Co2 isn’t the dominant driver of world temperature, well at least for people who are sane !

  7. mem

    Perhaps the penny is dropping. This excellent article on the math of renewables is a must read: https://economics21.org/inconvenient-realities-new-energy-economy
    The figures are hard to ignore.

  8. ACTOldFart

    The AFR’s change of heart couldn’t have something to do with Fairfax being taken over by Channel 9, could it? Peter Costello as Chairman of 9 introducing a bit of a different point of view, for example?

  9. Elizabeth (Lizzie) Beare

    ‘Are you with us?’ demanded the horrible little bearded man in those lefty AGL ads plugging the wonder of renewables.

    The voters’ answer has been a resounding NO. At last the mainstream media is waking up to why.

  10. RobK

    Thanks Alan.
    Good good link Mem. Even without the added complexity and potential points of failure the figures don’t stack up.

  11. Leo G

    But how to do this with a legacy of unreliable wind and solar facilities poisoning the low cost, reliable electricity system we previously had …

    Perhaps it should be done with a Reliable Energy Target, a target that maximises the capacity factor of the lowest-cost, available energy source- the source which sets the market floor price. (Hint: it’s not wind nor solar, nor even gas).

  12. tgs

    A sudden revelation that has dawned on Stutchbury, Potter, Macdonald-Smith, Tingle that the policy they have commended for so long is empty of virtue?

    Tingle isn’t at AFR anymore she’s at the ABC, isn’t she?

  13. BoyfromTottenham

    Alan,
    You ask: “But how to do this with a legacy of unreliable wind and solar facilities poisoning the low cost, reliable electricity system we previously had and, given our abundant easily mined coal, could once more be the backbone of the economy?”
    Easy – find a way to kill or disable the iniquitous LRET legislation which provides the $4bn annual subsidy to ‘renewables’ generation that drives this massive and ongoing wave of mal-investment in this critical industry.
    I would focus on the ‘market’ for the certificates which is at the heart of this cunning ‘not a tax, not a subsidy’ scheme. The certificates have no intrinsic value – they only achieve this by the legislatively enforced ‘market’ where electricity retailers must buy one of these certificates from a renewable generator for every MWh of renewable electricity they (are forced to) buy by this ‘target’, and surrender it to the Clean Energy Regulator to prove compliance.
    Failure by a retailer to buy sufficient certificates incurs a penalty of A$65.00/MWh, so this sets a floor for the ‘market’ price of these certificates. What if the penalty was reduced by half? Then the price of certificates would almost certainly (ceteris paribus) drop by about 50%, reducing both the hidden subsidy to renewables and the hidden tax on retailers (which is almost certainly passed straight on to SMEs and consumers) by the same amount. This is not trivial – the subsidy is worth over A$2 billion a year!
    IMO the key question here is “Who decided that the penalty should be A$65.00/MWh, and why should it not be reduced?”. With apologies to Karl Marx, this might help stop “the dictatorship of the climatariat” as I have described the aim of the whole CAGW scam.

  14. mem

    I hope you don’t mind Lizzie but your lyricism was just too good to miss. I hope I have done it justice.

    Once upon a time in the land of Oz where there had been much skulduggery and mucking with the nation’s electricity supply….
    ‘Are you with us?’ demanded the horrible little bearded man in those lefty AGL ads plugging the wonder of renewables.
    The voters’ answered with a resounding NO.
    And then at last the mainstream media woke from its slumber and saw through the terrible illusions created by the renewable hobgoblins. green elves and tax gougers.
    And so one by one the journalists crept back to their desks to expose the truth. And a great sigh went across the land.

  15. BoyfromTottenham

    mem – may I humbly suggest a couple of minor edits?
    “And then at last the mainstream media (woke from its slumber) realised that they had been lied to and saw through the terrible illusions created by the renewable hobgoblins. green elves and tax gougers.
    And so one by one the journalists regained their sanity and crept back to their desks to expose the truth. And a great sigh went across the land.”
    With apologies to Charles Mackay’s “Extraordinary Popular Delusions and the Madness of Crowds” (1841).

  16. I can only ask how many of the leftist protestors in Washington DC will have used “Renewable sources of energy” to power their buses and airplanes. They expect thousand tomorrow for the 4th of July celebration.

  17. Beachcomber

    A few of the items from Inconvenient Energy Realities

    38. It takes the energy-equivalent of 100 barrels of oil to fabricate a quantity of batteries that can store the energy equivalent of a single barrel of oil.

    39. A battery-centric grid and car world means mining gigatons more of the earth to access lithium, copper, nickel, graphite, rare earths, cobalt, etc.—and using millions of tons of oil and coal both in mining and to fabricate metals and concrete.

    40. China dominates global battery production with its grid 70% coal-fueled: EVs using Chinese batteries will create more carbon-dioxide than saved by replacing oil-burning engines.

    Remember that masterpiece of Green filmic propaganda The Age of Stupid? The title of the film was so lacking in self-awareness that it was ironic. We certainly live in an age of post-reason, where scientific reasoning has been replaced by Green-Marxist dogma.

  18. Entropy

    Normal doubleplus good newspeak will resume in tomorrow’s edition.

  19. I_am_not_a_robot

    Australia’s GDP from manufacturing grew steadily from 1974, peaked in 2008 and has fallen since (Trading Economics).
    Gross Fixed Capital Formation has also fallen since 2012 after a steady rise since 1959:

    Fluctuations in this indicator [GFCF] are often considered to show something about future business activity, business confidence and the pattern of economic growth. In times of economic uncertainty or recession, typically business investment in fixed assets will be reduced …

    … (Wiki).

  20. I_am_not_a_robot

    @ BoyfromTottenham (1:11 pm).
    I think in these circumstances they should not be allowed to merely ‘creep back to their desks’.

  21. Rayvic

    “Is the AFR rejoining economic rationality?”
    I’ll believe it when I see it.

  22. Elderly White Man From Skipton

    Moran makes stuff up. Core issues in reliability are either natural events like lightning strikes or the increasing unreliability of ageing coal plant. Costs were driven largely by the political attempts to “guarantee” reliability that encouraged utilities to spend up big in transmission and related infrastructure (but not on prayers against lightning). Gas costs were the last straw, driven by the diversion of gas from domestic to export.
    The shape of the grid will become increasingly bent about by the absence of any energy policy. Banging on about “poison” is part of the problem because it is not fact driven. (Note that many of the people Moran derides are actually in the business of power supply. Moran is not and has not ever been in that business.)

  23. Frank Walker from National Tiles

    Moran makes stuff up.

    No he does not.

    There will be NO lying on this blog.

    Core issues in reliability are either natural events like lightning strikes or the increasing unreliability of ageing coal plant

    Coal plants are as reliable as nuclear – that is, superlative.

    Costs were driven largely by the political attempts to “guarantee” reliability that encouraged utilities to spend up big in transmission and related infrastructure (but not on prayers against lightning).

    Because of mandated renewables, you innumerate twit.

    Gas costs were the last straw, driven by the diversion of gas from domestic to export.

    This has never been true and never will be. Export prices are driven by the Henry Hub which is huge compared to us.

    The shape of the grid will become increasingly bent about by the absence of any energy policy.

    Writing a policy…big deal! Denmark “had a policy” and they import nuclear-generated electricity when the wind doesn’t blow.

    Banging on about “poison” is part of the problem because it is not fact driven.

    Everything you have just trolled this forum with has been completely or nearly entirely false.

    Moran is not and has not ever been in that business.

    Nor have you, champ.

  24. bosnich

    The price of a Tesla is $100,00 plus…. easy peasy, then,we’ll all go off and buy one.

  25. Tim Neilson

    Note that many of the people Moran derides are actually in the business of power supply.

    Wrong.

    They are in the business of hoovering taxpayers’ and consumers’ funds by way of subsidies and crony capitalist rentseeking.

    Power supply is purely incidental to their business model.

  26. I_am_not_a_robot

    Power supply is purely incidental to their business model.

    That is true in the case of Hepburn Wind that has raked in more or almost as much from ‘scraps of paper’ than the supply of unreliable electricity.
    According to the 2018 annual report the revenue from the sale of electricity was $887,591 while the sale of large scale generation certificates brought in almost as much at $834,475.
    However in 2017 the income from the sale of electricity was $571,630 while that from certificate sales was $625,015.

  27. nb

    The general idea of the MSM is that you go to it for information. On this subject, and on just about everything else, the MSM is wrong. Why consult a clock that is correct twice in a lifetime?

  28. Elderly White Man From Skipton

    Frank: when you accuse someone of lying you really should be right.
    For example: the Henry Hub is a US domestic gas pricing hub. Australian LNG is notionally priced against Asian LNG CONTRACT prices. I note that a serious analyst has suggested that Asia might do with a hub, but we do not have one.
    OR: You seem unhappy with my observation about plant reliability. Check the age of our base load plant. Almost all are past their design life. Even more obvious: check the outages by turbine by month.
    As I have observed previously, Frank. You should take care. I think you need help. (or maybe you just make shit up?)

  29. Frank Walker from National Tiles

    Frank: when you accuse someone of lying you really should be right.

    Well, I am right, so, get fucked.

    Australian LNG is notionally priced against Asian LNG CONTRACT prices.

    This is not true at all. You’re just making this up.

    Australian consumption and production pales to the US. My point isn’t about “nominal” terms you’re just using as a talking point because some leftist trog said it before.

    Think on bigger scales and longer timescales you absolute dolt, and think about cross-price elasticities and marginal rates of transformation.

    If the US has a large supply response, global prices fall. This happened after 2008. Coal too, is a substitute for oil and gas. What happened to coal until recently?

    No gas company is going to price gas in 2019 like how some offshore producer sold to Kogas in 2011. They’d just make syngas, you fucking nimrod. They’d even make Syngas and ship it offshore, you dummy!

    Australian price elasticity is not “based off exports” you twit. You’re conflating supply and demand you utter bloody moron.

    Your theory about reservation is economic illiteracy and even theoretically, it has always been bullshit.

    Check the age of our base load plant. Almost all are past their design life. Even more obvious: check the outages by turbine by month.

    This is just hand waving. You’re really desperate. Provide some data, dickhead!

    Solar PV CANNOT work at night, dummy. Guess which season, wet, cold and low sunlight during the day, has longer nighttime hours? Explain how wind turbines work when there is no wind…

    Take care, you irredeemable liar.

  30. Frank Walker from National Tiles

    Actual data:

    https://www.appea.com.au/media_release/australian-wholesale-gas-prices-below-asian-average/

    Australian wholesale gas prices below Asian average

    14 May 2019
    LinkedIn Tweet

    Australia’s average gas prices are amongst the lowest in Asia, according to the latest international survey of wholesale gas prices.

    The 2019 International Gas Union’s Wholesale Gas Price Survey shows the average wholesale gas price in Australia last year ($US4.54/MMBTU[1]) was about 40 per cent less than the average wholesale price for the Asia‑Pacific region. The Australian price was also around one-third less than the average wholesale price in Asia.

    Australia’s leading trade partners Japan, South Korea and China all paid average wholesale gas prices over $US8 and in some cases approaching $US12/MMBTU. Australia also enjoyed lower wholesale gas prices than its two regional LNG export competitors, Malaysia and Indonesia.

    Globally, Australia’s average wholesale price ranked 27th in a survey of 54 nations (see chart below).

    APPEA Chief Executive Andrew McConville said: “While prices for new contracts on the east coast are higher than previously, the evidence shows the widely repeated claim that Australian prices are higher than prices in the countries importing our liquefied natural gas (LNG) is wrong.”

    Shut up and go away, you insane, ill-informed, batty old loon.

  31. Frank Walker from National Tiles

    Australian LNG is notionally priced against Asian LNG CONTRACT prices.

    LOL

  32. Elderly White Man From Skipton

    Frank: get a grip. A clue is that the Henry Hub price is totally different to Australian prices. That is, they are WAY LOWER. As for the base load turbine data, look it up yourself.
    No one uses the Henry Hub when talking about Australian gas prices because there is no comparison.
    Your ignorance is astonishing (at least in the context of calling someone a liar).
    Maybe your problem is that you don’t like facts. Or that you don’t care. In which case of course you are the liar.

  33. Rafe Champion

    I would like to know where to find information on turbine down time.
    As noted on the Windwatch daily we appear to be on station away from a major shortage.
    Occasionally we read that a turbine is down and that could be scheduled or unscheduled, I would like to be able to post a turbine watch as well as the wind watch.

  34. Frank Walker from National Tiles

    Jesus Christ.

    You’re a complete economic illiterate.

    The Australian domestic market is 2.7% of US production.

    A clue is that the Henry Hub price is totally different to Australian prices. That is, they are WAY LOWER.

    As Australian prices are WAY LOWER than the in countries we export to/or have supply contracts with.

    “Nominally priced with…” is a near complete myth (it is insignificant to our prices) and substitutes, domestic demand elasticity and (global) supply response matters so much more.

    If you don’t understand what I am talking about, you are out of your depth, moron.

    You can shut up now about “nominally priced according to…” and other “Dutch Disease” nonsense because the empirical data in the current year shows it is demonstrably false.

  35. Someone from AFR must have read the comments under The Australian’s articles about the global warming scam. More sense there than in most of what the AFR have retailed since their ‘blonde economist’ started work there, coinciding with plunging standards. I recall the AFR was a must read, had all sorts of in depth articles describing industrial processes. Then it all went to hell in a handbasket.

  36. Elderly White Man From Skipton

    Frank: if you dont know shut up.

  37. Frank Walker from National Tiles

    “If you don’t know”

    Australia’s average gas prices are amongst the lowest in Asia

    That’s a good thing.

    wholesale gas price in Australia last year ($US4.54/MMBTU[1]) was about 40 per cent less than the average wholesale price for the Asia‑Pacific region. The Australian price was also around one-third less than the average wholesale price in Asia.

    Wow. These contracts that “dictate domestic prices” must have some whacky terms!

    While prices for new contracts on the east coast are higher than previously, the evidence shows the widely repeated claim that Australian prices are higher than prices in the countries importing our liquefied natural gas (LNG) is wrong.

    They’re not even the same price! 40% lower!

    Reservation of commodities is a brain dead economic argument.

  38. GoWest

    Perhaps the AFR has realized that the reserve bank interest rate cuts proved that the effects of renewables on the Oz economy are unsustainable….;) like the ABC they are always a year or three late realizing what voters knew already.

  39. Elizabeth (Lizzie) Beare

    An excellent bedtime story thanks Mem, with a happily ever after coal-warm glow to it. Tonight I go to bed cheered by the knowledge that the once vainglorious MSM Emperor called Renewables the Great is slowly expelling all that hot air, putting on his underpants and reaching for his britches to cover his shame and obvious incapacity. 🙂

  40. Leo G

    Occasionally we read that a turbine is down and that could be scheduled or unscheduled, ..

    Cycling rates are expected to increase with an increasing proportion of renewables. What does the available data indicate?

  41. W Hogg

    It is way too late to “fix” anything. The $70bn wasted on Unreliables will poison the grid for a decade (before premature failure and gearbox fires “surprise” everyone). Hazelwood and other power stations are destroyed. The subsidies for solar are contracted for decades.

    You can’t just go “policy mistake, sorry LOL” and reverse everything. This kind of vandalism is by design unable to be reversed at a change of govt. We just have to get used to the idea of paying ultra high prices for power, and having it not there on very hot days. Stick old folks in a cool bath till it comes back on.

  42. mem

    Elizabeth (Lizzie) Beare
    #3097413, posted on July 4, 2019 at 11:08 pm

    Tonight I go to bed cheered by the knowledge that the once vainglorious MSM Emperor called Renewables the Great is slowly expelling all that hot air, putting on his underpants and reaching for his britches to cover his shame and obvious incapacity.

    🙂
    Sleep tight Lizzie, mem

  43. CameronH

    yarpos, The train wreck is closer than people think. There are significant periods of time now when the whole east coast and South Australia are relying on the interconnectors from Queensland and Tasmania. One more large power station closure plus the introduction of more intermittent and unreliable wind and solar could completely destabilize the grid. The lead time to build a power station is at least 6 years so we could be in for a hell of a ride here.

  44. Elderly White Man From Skipton

    Frank: most of Asia imports its gas. Our domgas was around $3/Gj and is now more like $9 if you can get it. Japan imports average $US5.60 currently. All their gas is LNG imports.
    In short, we are sitting on one of the biggest gas resources in the world and yet we have among the highest prices. That is a debacle. Prices changed when the Gladstone LNG sucked up East Coast gas for exports. Those are facts Frank.

    You are clueless Frank. And a liar.

  45. Frank Walker from National Tiles

    $3 and $9 are clearly not contractually tied to $5.60!

    You are all over the shop you muppet.

    In short, we are sitting on one of the biggest gas resources in the world and yet we have among the highest prices.

    No, you are lying. I have quoted APPEA numerous times. Our wholesale prices are 40% lower than Asia. You reckon prices have tripled. Absolute bullshit.

    Prices changed when the Gladstone LNG sucked up East Coast gas for exports. Those are facts Frank.

    No, they are not. These are talking points repeated over and over again by the insane left.

    “Clueless!”

    Yes, having (wholesale) prices 40% lower than an overseas contract has nothing to do with overseas prices.

    You are simply lying about gas because you know that the anti-coal regulations have forced gas to be sucked up into electricity production.

    What you are saying is so offensive and dishonest it is nearly actionable.

  46. I_am_not_a_robot

    A sudden revelation that has dawned on Stutchbury, Potter, Macdonald-Smith, Tingle that the policy they have commended for so long is empty of virtue …

    While climate change™ has been a useful political tool as well as a nice little earner, recent political contenders actually promising the radical policies alarmists say are necessary is proving a step too far.

  47. Frank Walker from National Tiles

    LOL

    5.60 USD is 7.97 AUD. $9 is not $8, dummy.

    The prices aren’t even the same, you’ve just pulled some figure out of your rear you thought was close.

    You have to stop being dishonest. Why does Victoria need an emergency plan for gas, dummy; other states do not?

    Could it have anything to do with sabotaging coal-fired power?

    You stupid jerk.

    https://www.aemo.com.au/Gas/Declared-Wholesale-Gas-Market-DWGM/Victorian-gas-operations

  48. Frank Walker from National Tiles

    So our wholesale prices are lower than theirs but our prices to consumers are higher?

    https://www.appea.com.au/media_release/australian-average-wholesale-gas-prices-remain-below-asian-average/

    Blaming anything but the green crusade against coal is dishonest and stupid.

  49. W Hogg

    Elderly tosspot from Fuckeittery wrote

    Check the age of our base load plant. Almost all are past their design life. Even more obvious: check the outages by turbine by month.

    1) The fleet is very young. Older stuff like Hazelwood is already destroyed.
    2) Corrupt green kleptocrats like to sing about “105 outages.” That represented an in service rate of 99%. Wind had never approached this rate of reliability and is lucky to average a quarter of it. (Ie 80x the unreliability.)

  50. Tel

    Easy – find a way to kill or disable the iniquitous LRET legislation which provides the $4bn annual subsidy to ‘renewables’ generation that drives this massive and ongoing wave of mal-investment in this critical industry.

    That needs to get wedged into every single discussion on energy prices until people are sick of hearing it but they remember RET = subsidies. The conspiracy of silence must end.

  51. Elderly White Man From Skipton

    Frank: try the BP Energy Outlook, which is annual, or the IEA web site, which has updated data, or the OECD’s report on Asia gas, or the IEE Japan, or anything really.

    You are stuck pal and your only recourse is childishness. People like you wreck policy development because you make stupid arguments that are all about personal fetish and prejudices. We are going to have a very bad energy environment and everyone in industry knows it. Take a bow, Frank.

  52. Frank Walker from National Tiles

    Frank: try the BP Energy Outlook, which is annual, or the IEA web site, which has updated data, or the OECD’s report on Asia gas, or the IEE Japan, or anything really.

    What does that prove?

    We have lower WHOLESALE prices than Japan (what Australian firms sell on contract to Japanese firms), but higher RETAIL prices.

    Your idea about energy reservation and “Asian contracts driving Australian prices” is a load of mystical hocus pocus.

    We are going to have a very bad energy environment and everyone in industry knows it.

    We already have a very bad energy environment because of delusional leftist loons like you who cannot admit that solar PV doesn’t work at night time.

  53. Oil fella

    Not wanting to get amid head butting but you have missed a critical bit Frank. Gas industry comparisons are done on “netback”, which is the landed lng price less the lng processing and shipping inclusions. So it is a fact that wholesale industrial gas here is now much more expensive than Japanese import lng pricing. I shall duck away now.

  54. Elderly White Man From Skipton

    Once again, Frank fails to know when digging leads to deeper holes.
    What those sources prove, Frank, is that you do not attemnpt to see the facts of an issue. Rather, like a petulant brat, you shout and yell abuse when you don’t like reality.
    The LNG price landed Japan is lower than Australian industrial volume gas pricing. The LNG prices includes the cost of liquefaction, shipping, etc. So what you utterly flunk on Frank is the facts.
    Over and out dullard.

  55. Frank Walker from National Tiles

    The facts are:

    Our wholesale prices are lower (40% lower) than the contracts we have with Japan:

    Yet, our retail prices are higher than those Japanese consumers face in Japan.

    The high prices we pay, therefore, have virtually nothing to do with overseas contract prices and are determined by domestic market machinations, such as substituting for coal-fired power.

  56. Crossie

    You can’t just go “policy mistake, sorry LOL” and reverse everything. This kind of vandalism is by design unable to be reversed at a change of govt. We just have to get used to the idea of paying ultra high prices for power, and having it not there on very hot days. Stick old folks in a cool bath till it comes back on.

    Who says? The government can bring in a new law that says the previous policy is damaging the national economy and the arrangement is now null and void. The carpet baggers can sue if they don’t mind losing even more money to lawyers.

  57. Frank Walker from National Tiles

    The carpet baggers can sue if they don’t mind losing even more money to lawyers.

    For what? The government can always make the objects of a contract illegal.

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