Peter Dutton’s gas plan is a superficial solution to a real problem. Australians deserve better | Tony Wood

Without more clarity, it is impossible to assess whether the Coalition’s idea would – or even could – meet what is otherwise a sound objectiveElection 2025 live updates: Australia federal election campaignGet our breaking news email, free app or daily news podcastPeter Dutton says his policies would reduce the wholesale price of gas on Australia’s east coast from $14 a gigajoule to $10 a gigajoule by increasing supply. He also argues that lowering the price of gas would lower the price of electricity. Such an apparently simple and appealing proposal deserves serious assessment.Three key facts need to be considered:There is now not enough gas available outside the production of Queensland LNG producers to meet demand on the east coast, and that position is getting worse as long-term production in Gippsland in Victoria declines.East coast wholesale gas prices per gigajoule have risen from $8 to $10 in the second half of 2017, to about $14 today.Gas is needed to meet electricity demand when the mix of coal, hydro and renewables is not enough to meet demand. When this happens, the high cost of gas tends to push up the wholesale price of electricity. Continue reading...