Energy White Paper Confirms Gas Market Reform Essential to Industry

The Australian Food and Grocery Council (AFGC) welcomes the release of the Energy White Paper, which emphasises Australia still has a way to go in improving the competitiveness of domestic energy markets.

AFGC CEO Gary Dawson said rising electricity and gas costs have hampered the competitiveness and profitability of the domestic food and grocery manufacturing industry in recent years, with more pain yet to come through a forecast tripling of gas prices.

“Last year, the AFGC and a consortium of five other industry associations released a report that estimated the damaging effect of rising gas prices on Australia’s manufacturing industries,” said Mr Dawson.

“The Deloitte report forecast a tripling of gas prices, which will lead to a cumulative loss of output in the food, beverage and grocery manufacturing industry of $9.7 billion by 2021 and a loss of 3000 jobs over the same period.”

“In releasing the Energy White Paper, the Australian Government has agreed with industry’s calls for gas market reform by increasing gas supplies, improving competition and increasing information about gas supply availability and pricing.”

“The Government has acknowledged that the gas market needs reform to ease price pressures, improve competition and to give gas users the tools to manage their price risks.”

“We look forward to working with the Australian and, importantly, state governments to ensure that the Energy White Paper delivers outcomes that support the competitiveness and sustainability of the Australian manufacturing industry.”

“However, gas is only one element in our manufacturing supply chain and AFGC also calls on government at all levels to finalise previous reforms around electricity, retail market pricing and privatization,” said Mr Dawson.


Contact: James Mathews 040 7416 002