Pressure to fix gas contract crisis

ENERGY Minister Matthew Groom needs to emerge from the COAG Energy Council meeting today with a clear plan to resolve the Tasmanian gas contract crisis, the State Opposition says.

Labor energy spokesman Scott Bacon’s comments come as Tasmanian industrial gas users face a tripling of gas prices to about $12/GJ and a 95 per cent increase in prices for transmission across the Tasmanian Gas Pipeline.

“Our biggest employers cannot afford to be left in limbo by the Government any longer,” he said.

“It’s an indictment on the minister that after three years we are no closer to certainty for major industrial customers.”

A government spokesman said gas would be among a range of issues to be discussed at the Council of Australian Governments Energy Council meeting in Brisbane.

Hydro Tasmania and the Tasmanian Gas Pipeline owners, Palisade Investments, have been unable to agree on transmission charges on the pipeline which runs from Longford in Victoria to Bell Bay and then on to Port Latta and Bridgewater.

The standoff looks set to go to arbitration under a Gas Market Reform Group process which becomes available from September 1 after the COAG Energy Council approves it at an out-of-session meeting early next month.

The State Government has committed about $100 million to hold residential bills down to a 2 per cent rise from July 1.