The problem is if the major suppliers have a price cap it will be difficult for the small suppliers to get a price much higher than the cap . There would need to be a pronounced shortage to get a price above that and it is likely to be a spot price of only short duration . If a chronic shortage occurs the government will have go against what they have told our Asian customers or encourage more exploration and development of new supplies . Uncoupling the small suppliers will help them but not as much as a free market would .
The best thing the government could do would be to pressure the states to remove the restrictions on the discovery and production of new supply . Vic and NSW in particular . Even allow fracking that has been proven to be safe if conducted properly ,but that is very very unlikely while the Greens have such a strong hold over the present Government .
MEL Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
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