Australian Ministers to Meet to Tackle Energy Crisis

A file image of the then deputy leader of the opposition Richard Marles at Parliament House in Canberra, Australia on Dec. 7, 2020. Marles is now the country’s deputy prime minister and the defence minister. Sam Mooy/Getty Images

Australian ministers at both state and federal levels will meet to address the energy crisis sweeping through the country.

Deputy Prime Minister Richard Marles said the federal government would consider employing all possible measures to improve gas supplies across the east coast.

“We'll be meeting with the regulator (and) with our state counterparts in a ministerial meeting next week to look at every available option here,” Marles told the Nine Network.

“The regulators already said that in initiating gas supply mechanism, they’re already seeing more gas supply into the southeast corner of the country, and that should have a short-term impact.”

On June 1, the Australian Energy Market Operator implemented the Gas Supply Guarantee Mechanism for the first time since its introduction in 2017. The mechanism was expected to make gas available for power generators and prevent a gas shortage in southern states.

Gas and electricity prices have shot up across Australia due to increased winter demand for energy, unscheduled outages at coal-fired power stations, and gas shortages caused by the Russia-Ukraine war.

The Yallourn coal-fired power station in the Latrobe Valley of Victoria, Australia, on April 28, 2022. Caden Pearson, The Epoch Times

Meanwhile, Energy Minister Chris Bowen is expected to organize the meeting in the week commencing June 6.

At the same time, Marles said that the government would seek to boost renewable energy production in the medium to long term. Still, the deputy prime minister noted that it would take time to make changes to the energy grid.

“What we have got now is really the product of nine years of failure on the part of the former government in terms of having consistent energy policy,” he said.

“Investment in renewables is down, which is why we don’t have a grid that can accept them.”

However, opposition leader Peter Dutton described Marles’ criticism as a complete rewrite of history.

“This government went to the election saying they had the answers, and clearly they don’t,” Dutton said.

“This is nothing to do with renewables. I think the government has to take responsibility for what is a serious issue.”

In addition, Dutton said that despite international factors adversely affecting the Australian energy market, there were mechanisms in place to navigate evolving situations.

“Obviously, international impacts out of Europe ... at the moment mean the government has to respond,” he said.

“It seems to me that the inexperience of both Anthony Albanese and Chris Bowen is shining through. They have got the ability and the legislation there to deal with this, and they don’t know what they should do.”

Meanwhile, the federal government has faced calls to trigger the Australian Domestic Gas Reservation Mechanism to redirect exports and support domestic supply.

Nevertheless, the energy minister said the mechanism would not lead to a change in gas prices in the short term.

“That’s a misunderstanding of how the mechanism works ... it cannot come into force until January 1 next year,” Bowen told reporters.