I originally heard a price cap and thought maybe it could be bad...

I originally heard a price cap and thought maybe it could be bad but after finding it was capped at $12/GJ for 1 year and pretty much matches the forecast prices it doesn't change the prospects for EMP where their project case is around $10/GJ like the market expects for new investments to be enticing.

Listening to the P.M. today the $12/GJ cap is not an issue and actually can be a positive. He said 96% of the gas being sold on the market is around $10, so they are leaving the margin of profit from $6/GJ to produce quite favourable for both existing gas suppliers and new projects to come on board. Also as new gas supply is still needed the cap actually hinders LNG terminals which in Victoria are $1.70/GJ more expensive than local supply and have the other problem of environmental approvals. EMP with local supply is actually looking quite favourable as a local investment protected from more expensive gas supplies and creating larger gas pipeline networks as there is not as much money in trying to change the network the way it works now which is the most efficient, i.e. Bass Strait gas.