ACCC: GOVERNMENT GAS INTERVENTIONS HAVE FAILED, INCREASED SHORTFALL RISKS

 

• Labor’s gas crisis means storage won’t be filled in early 2026, risking winter shortfalls. 
• Tighter gas supply and higher prices forecast for East Coast gas.
• ACCC confirms Labor’s gas market interventions have failed to bring down prices or increase supply.

Labor’s gas market interventions have failed the East Coast market, the ACCC has confirmed in their most recent Interim Gas report. 

Australia’s gas crisis has continued to get worse under the Albanese Labor Government, with the ACCC savaging the Government’s changes to the Australian Domestic Gas Supply Mechanism (ADGSM), and Mandatory Gas Code. 

The ACCC has found that not only have these interventions not reduced prices, but they have worsened supply, incentivised gas companies to produce less non-contract gas for the domestic market, and increased shortfall risks.

Most concerning is the tight gas supply for Q1 2026 on the East Coast, with southern gas producers forecast to not produce surplus gas, putting at risk the ability for gas storages to sufficiently replenish before winter, raising the risks of winter shortfalls and blackouts. 

After more than three years in office, Labor has done nothing to improve supply. Instead, it has presided over worsening conditions where producers have less incentive to invest, long-term contracts are evaporating, and prices remain stubbornly high for consumers.

Gas prices remain above the Government’s $12/gigajoule price cap – yet another failure from Minister Bowen and Minister King to deliver affordable gas for Australians. 

Shadow Minister for Resources, Senator McDonald, said that Australians are yet again facing winter gas shortages thanks to the failures of the Albanese Labor Government.

“With no southern surplus gas forecast for early 2026, it is increasingly likely that southern gas storage will be unable to replenish before winter next year, greatly increasing the risk of winter shortfalls in Victoria.

“The ACCC are clear in their assessment that the Government’s repeated gas interventions have failed to deliver $12 gas, and have in fact increased the risk of shortfalls.

“Under Labor, Australians have seen higher gas prices, higher energy bills, and higher risk of blackouts – it is clear that this Government’s anti-gas crusade is set to deliver more pain for Australian households and businesses.”

Shadow Minister for Energy and Emissions Reduction, the Hon Dan Tehan MP, said that this is yet further confirmation that Labor’s energy transition remains a mess.

“Emissions are flatlining, gas prices continue to rise putting enormous pressure on industry and household budgets continue to be squeezed.

“It is quite clear from the ACCC report that Australia must ‘step on the gas’, yet Minister Chris Bowen continues to demonise gas.

“How many more businesses do we have to lose for the Albanese Labor Government to act?”

ENDS