AUST today (extract): ELECTRICITY COSTS ‘ARE POWERING INFLATION’...

AUST today (extract):
ELECTRICITY COSTS ‘ARE POWERING INFLATION’
treasurer warns of risk
Greg Brown - Perry Williams
Electricity bills have risen by $300 for households and $1500 for small businesses since April, as Jim Chalmers warns that rising energy prices are risking pushing inflation higher than expected into the new year.
The Treasurer said the government planned further intervention in the gas market to push down domestic prices, signalling reform of regulations for LNG producers and a price trigger to redirect exports to the domestic market.
Dr Chalmers said “more can be done” to put downward pressure on gas prices than the heads of agreement struck between the government and producers to guarantee sufficient domestic supply next year.
“There is more that governments can do, and there will be more that we do,” he said.
“The way our gas industry regulation is set up has not been delivering the kinds of outcomes we want to see.”
The government has been considering reforming the Australian Domestic Gas Security Mechanism so the export trigger can be invoked when prices are too high, rather than its existing function to ensure there is enough supply.
With a major energy retainer warning that bills would rise by at least 35 per cent next year, Australian Competition & Consumer Commission chair Gina Cass-Gottlieb revealed electricity bills had increased by 25 per cent since April. “For electricity prices in the (national energy market), we have seen an increase of $300,” Ms Cass-Gottlieb said.
“That is a 25 per cent increase since April in the residential median bill. For small business, we have seen an increase of $1500.”