Australian manufacturers warn gas plan could force closures
Energy Users Association warns Canberra's softer rules could leave factories with high bills or force them to close.
The Energy Users Association of Australia speaks for major makers like Wesfarmers, BlueScope Steel and Visy. The association says the government's gas plan is flawed.
The association's members employ more than one million Australians. The original plan asked exporters to supply 20 per cent of their exports to local buyers.
Canberra eased it to about 20 per cent. This gives the regulator room to cut targets if demand forecasts are lower.
The association warns this flexibility works only one way. If forecasts underestimate demand, exporters' targets may already be cut.
There is no clear way to fix the shortfall. For industrial users, affordable gas means the difference between staying in business or closing.
The submission says this clearly. Producers Woodside and Chevron also oppose the draft.
They say it still gives too much power to the government.
- over 1 million Australians
- Members employ
- 20 per cent
- Original target
- up to 20 per cent
- Draft target
Why it mattersHigh energy costs put major manufacturing operations at risk across Australia. This affects jobs and the goods Australians buy.
AustraliaCould force closures at major Australian factories and push up prices for locally made goods if gas stays expensive.
✓ Claims checked against the source and corrected before publish. checked 4 h ago
