Mr Cottee response to COAG/GMFR report

A precis' of an article released today.


Sounds to me as if Mr Cottee is really saying there needs to be more gas exploration , BUT does not say WE HAVE THE GAS!

CB

https://www.linkedin.com/pulse/gmrg-fails-australian-manufacturers-richard-cottee

"Australian Gas Industry veteran, Richard Cottee, today said the Final Design Recommendations of the Gas Market Reform Group (“GRMG”) condemned Australian manufacturers to a future of high energy and gas prices by stepping back from genuine gas market reform called for by the ACCC and Vertigan Inquiries."


Mr Cottee said the final GRMG recommendations buttresses and strengthens “the barriers to entry” to market for new gas supplies and suppliers.
Mr Cottee also said "GMRG has decided that investment in pipelines (notwithstanding a big capital market appetite for infrastructure) takes priority over investment in new gas supplies (where there is little appetite for investment).

The purpose or effect of the final recommendations will be a further decrease in new supplies as the GMRG recommendations will ensure that, in the words of the Vertigan report, the total return on pipeline business remains double that of the average regulated electricity network operator.

The much-vaunted increase in transparency will only prove “who is doing it, not stop it being done”.

The point made on page 57 of the Vertigan Report highlighted the problem with “the uncertainty associated with how the AER will determine tariffs”, yet pricing principles outlined in the GRMG defers the issue of past recoveries of capital to the arbitrator to determine under the guise of “workably competitive market objectives”.

CB